Question 9: Freedom To Contract: Voluntary Nature Of Agreements/protection For Consumer Flashcards
(18 cards)
What is meant by ‘freedom to contract’
The idea that parties freely and voluntarily enter into agreements
What economic theory influenced contract law in the 19th century
Laissez faire - minimal state interference in private agreements
When were modern contract law principles mainly developed
- during the 19th century Industrial Revolution in Britain
How far back can contract laws origins be traced
To the Middle Ages
Why is voluntariness central to contract law
Because contracts are based on mutual consent and free will
What has developed to support voluntary agreements
Formal rues and legal principles to ensure enforceability
What is a key criticism of freedom to contract
It assumes equal bargaining power, which is often not true (e.g. employer vs employee, business vs consumer)
How has the law limited absolute freedom to contract
Through protections like consumer rights act 2015, and the unfair contract terms act 1977, especially in unequal relationships
Why is freedom to contract still important today
It encourages certainty, autonomy, and commercial efficiency - key values in contract law
Are all contracts formed in formal business settings
- no, many everyday activities create informal contracts
Give examples of everyday contract people enter into
Buying a chocolate bar, travelling by bus or train
What kind of problems might consumers face with everyday contracts
Injury due to driver fault, faulty/contaminated products etc
How have courts responded to consumer problems
- by developing contractual rules to protect consumers
How has Parliament helped to protect consumers
By introducing legislation to formalise consumer rights
What role did EU membership play in consumer protection
Introduced additional consumer rights that remain in UK law post brexit
How does consumer protection law effect the validity of unfair contract terms
- unfair terms can be declared void or unenforceable to protect consumers
Why is consumer protection important in everyday contracts
- because many contracts are informal and consumers may not be aware of their rights
How does consumer protection law reflect the imbalance in bargaining power
- provides statutory safeguards to protect consumers against stronger businesses
