The Doctrine of Equitable Estoppel in the Law of Contract

A very important question is whether a person who has already made a promise to reduce the amount of reward he receives can go back on such promise. The area that deals specifically with this scenario is equitable estoppel. In order to fully understand equitable estoppel, it would be best to trace its evolution over the years. Read More…

Equitable Remedies in the Doctrine of Mistake

Equitable Remedies

The Rationale for Equitable Remedies

As can be seen from cases like Cundy vs. Lindsay, the common law doesn’t pay much attention to the interest of third parties in a contract. If it can just be proved that there was a mistake, the contract would be made void. Due to this rigidity and harshness Read More…



Introduction to the Doctrine of Mistake

There is always a consensus ad idem (meeting of the minds) between parties that enter into a contract. What this means is that both parties to a contract are thinking of the same thing when they enter into a contract. Thus, when a party enters into a contract on a mistaken assumption of some fundamental facts, the consensus ad idem is lost. This then justifies the contract being voided for mistake.

To a layman, any obvious Read More…


Equitable Remedies

What Is Privity of Contract?

In the law of contract, privity of contract means that it is only parties to a contract that can benefit or be subjected to obligations under such contract. Thus, as a general rule no individual can suffer burden or enjoy benefits in contract to which he isn’t a party. This principle is in line with other fundamental principles of the law of contract such as: freedom of contract, personal liberty of contracting parties, choice of parties etc. This principle was firmly established in the case of Read More…



A contract may have all the required contents: offer, acceptance, consideration and intention to create legal relations. However it could still be regarded as unenforceable if some laws in relation to privileged persons are not fully complied with. Thus, it is not all persons that can engage in a contract. This aspect would deal with the capacity to contract. In doing this, the outline below would be utilized:

  • Who is an illiterate
  • The Illiterate Protection Act
  • Limitations to the Illiterate Protection Act
  • Contracts Entered into by infants
  • Contracts made by lunatics
  • Contracts made by drunkards

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There is a lot of academic controversy regarding whether or not the intention to create legal relations should be regarded as a necessary ingredient in the formation of a contract. This controversy, as previously stated is purely academic. Under the common law the intention must be present. In commercial transactions, the intention to create legal relations is presumed to be inherent while it is arguable under domestic and intermediate situations. Read More…

Understanding Consideration in the Law of Contract

The layman on the streets knows that he doesn’t owe anyone an obligation if there is no payment. He knows that if he promises to  do or give something to someone, the only thing binding him to the promise is his honour.

However, when the other person pays him for this promise, he has to fulfil it. In the law of contract, this payment is known as consideration. It doesn’t necessarily have to be a payment, it could even be an act. All that matters is that the person who was promised (promisee) gave or did something in return for the promise.

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