The Law of Contract: Major Concepts and Their Practical Relevance in

Today’s World

A Report by Group 1.25:

ISMATH F S (Leader) 2023MS11542

ISURANGI M A A 2023MS11543
JASINGE S S 2023MS11544
JASRA M J F 2023MS11545
JAYAKODY A N 2023 MS11546
JAYALATH J A S N 2023MS11547
JAYALATH J P Y R 2023MS11548
JAYAMALI M P 2023MS11549
JAYANETHSIRI W K R 2023MS11550
JAYASEKARA J M K D 2023MS11551
SEWWANDI B K I 2019MS9020
KULATHILAKE K I K 2023MS11616

Bachelor of Business Administration Degree Programme

MOS 120401: Legal Environment

Ms. Charuni Gamage
Semester II

Faculty of Management and Finance

UNIVERSITY OF COLOMBO

November 10, 2024

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 Abstract

The subject matter involves relationships between people and businesses, because the
parties who made some promises such as been given in an agreement can be made to fulfill those
promises legally. This report is aimed at assessing certain principles in contract law including offer
and acceptance, consideration, intention to create legal relations, capacity, legal purpose, and
consent of parties. It seeks the significance of all these principles in the past and present for
instance the cases of Carlill v Carbolic Smoke Ball Co. and Currie v Misa and also deals with
issues of e-commerce, smart agreements, and international contracts.

The history of contract law with respect to ever-evolving contract law principles in regard
to emergence of technology, cross border market forces and issues such as Artificial Intelligence
are also considered in detail. In conclusion, the report complements the importance of the law of
contracts whereby confidence, safety and fairness of all activities is enhanced in the course of
business transactions by providing an enabling legal environment which seeks public interest.

Keywords: Contract Law, Offer and Acceptance, Consideration, Intention to Create Legal
Relations, Capacity, Legality of Purpose, Consent, Digital Transactions, Smart Contracts,
Cross-Border Agreements, Technological Advancements, Artificial Intelligence, Legal
Framework, Enforceability.

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 Introduction

Contracts are fundamental part of any legal agreements, both personally and
commercially as they give the necessary framework within which the parties can come up with
and abide by enforceable commitments. This framework defines the rights and obligations of the
parties to the contract and thus makes contract law possible as it seeks to ensure that the
promises made are kept and society is left with a level of faith and certainty. It is of vital
importance in daily activities for example business transactions including the sale of products,
employment relations and consumer transactions

Some of the most important concepts of contract law include: offer and acceptance,
consideration, intent of the parties, and capacity. These economic aspects explain the way in
which the contracts are concluded, the valid means of conclusion and their enforcement.
However, with the development of society, the law of contracts has developed as well and has
changed according to new types of contracts that appeared with the advancement in technology,
introduction of e-commerce, and increased international trade.

This report looks into the basic tenets of contract law with other aspects, such as its
underlying principles and modern-day contexts. By studying the development of key cases in the
past, this paper also demonstrates contract law’s responsibility for both, traditional forms of
agreement and modern-day processes like smart contracts and e commerce. These processes
include analysis of contracts and pertinent aspects that are relevant in the contemporary world in
a contract between two or more parties.

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 Methodology

This report adopts a doctrinal research approach in analyzing primary and secondary legal
sources to explain and critically appraise the principles of contract law. In this regard, the primary
sources include statutes, landmark case law, and judicial decisions that have influenced how
contract law has been interpreted and applied. The cases of Carlill v Carbolic Smoke Ball Co and
Currie v Misa are considered in effort to discuss the basic elements of contracts and their legal
considerations.

Secondary sources include various academic articles, textbooks, and commentaries on the law that
provide broad-based explanations and critical insights in respect of the shifting nature of the law
of contract. They expand on how these principles actually apply and impact areas related to modern
developments like digital transactions, smart contracts, and international agreements.

The report also integrates a comparison of various traditional principles of contract law with their
application in modern times, taking into further consideration how the legal framework has tried
to keep pace with technology. Further discussion is presented on the challenges that e-commerce,
international contracts, and artificial intelligence have posed for the courts.

This approach will therefore provide all-around research into the law of contract, embedding the
legal theory within practical examples to illustrate its relevance and adaptability to modern society.

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 Results

The subsequent report analyzes some of the main findings on the principles of contract law in
relation to contract formation, enforcement, and development in both the traditional sense and in
modern times:

1. Core Elements of Contracts: Fundamental concepts such as offer, acceptance,

consideration, intention to create legal relations, and capacity bear the hallmark of contract
law; essentially, it would appear that these factors form the basis upon which agreements
can either be deemed valid and enforceable or otherwise. Landmark cases like Carlill v
Carbolic Smoke Ball Co. will illustrate how these elements apply in reality, as a guideline
for dispute resolution.

2. Importance of Case Law: In this regard, the judicial decisions made in the case of Currie
v Misa and Balfour v Balfour are significant as they outline and explain the principles of
contract law. From these cases, what becomes clearly understandable is how courts
interpret concepts such as consideration and intention to create legal relations and how
such principles can act as precedents in contemporary legal disputes.

3. Adaptation to Digital Transactions: E-commerce and digital contracts-imposed changes

that needed to be adopted by contract law. Unique challenges arise with online transactions
and electronic agreements regarding issues such as offer and acceptance, consent, and
consideration. Contract law has moved to address these issues, such as in laws like the
ESIGN Act and UETA.

4. Emerging Technologies and Smart Contracts: While smart contracts ensure efficiency
and transparency in conducting business transactions using blockchain technology and
artificial intelligence, the enforceability of such contracts and its legal interpretation create
a problem. As smart contracts continue to grow in use, further development in regulation
is needed to situate the concept into the existing legal framework.

5. Globalization and Cross-Border Contracts: The role of globalization has increased

international contracts and cross-border transactions. According to the report, there is a
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 greater need for uniform legal frameworks governing international contracts. These include
the CISG, which affords standardized rules for international contracts. However, this is
usually encumbered by differences in legal systems and any additional mechanism for
dispute resolution.

Overall, the results show that while traditional contract law principles remain vital, the field
continues to evolve to meet the demands of a digital, globalized world. Courts and legal systems
are increasingly adapting to new challenges, ensuring that contract law remains relevant in modern
society.

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 Discussion

Contract law forms a part of the legal system that deals with regulating the rights and duties
that arise from the agreements made between two parties. A contract is an agreement between two
or more parties, which contains enforceable rights and obligations that are mutually accepted. This
branch of law’s importance stems from its ability to facilitate transactions, and to assist in making
promises, which could have been made, in many non-business or business fields, enforceable at
law. In principle, the core principle of contract law is mutual agreement, in which the parties
involved in a contract are fully aware of the terms they are agreeing to before entering the contract.
Such a basic notion is of great importance in enhancing trust and credibility in engagements or
deals, whether between individuals or corporations.

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The fundamental aspects of a contract which is valid and enforceable in a court of law are as
follows:

• Offer: This is a bid that is made by one partner to another one, suggesting someone’s desire
to conclude a binding contract.

• Acceptance: It is the absolute agreement to the conditions of a proposal.

• Consideration: This refers to any value that the involved parties exchange to back the
promise.

• Intention to create legal relations: However, legal intent is necessary since the two parties
intend the agreement to be fundamental.

• Legal purpose: There must be a legal objective for the contract; it can’t be an intention to
defeat the set public policy.

• Capacity: The parties must have the capacity to enter into contract relationships, that is,
they are of legal age to form a contract, and are not insane.

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Importance of Contract Law in Modern Society
Aspects of contract law are of great importance to both personal and business relations. It
encompasses the areas of negotiation, guarantee, and resolution of conflicts existing within
transactions, partnerships, and employment specific transactions. Thereafter, and once again, the
purpose of contract law is to reduce the underlying risks of transactions and promote the
confidence to the parties engaged in the agreement. In this way, it ensures the parties’ fulfilment
of their obligations and reduces the likelihood of fraud or other unethical behavior.

Under the conditions of business usage, it is undeniable that the contract law is one of the
most effective reasons for the market to work properly. It can make sure that obligations and
contracts relating to an agreement to sale or an employment or a partnership or a lease order are
kept, which are essential for the economy's growth and stability. And, apart from that, contract
law is also able to integrate some aspects of consumer protection and make sure that consumers
are not violated.

The advancement of the cyber technology too has made it imperative to review the contract law
since the possibility of making online deals and electronically signing agreements is becoming a
common occurrence. As companies develop within the realm of international business and
globalization of e –commerce, the guidelines of the contract law act as the pillars upon which
trustful and dependability transactions are based, thus catering for the needs of all the stakeholders.
As a result, the constant and measurable contract law contributes to the market conditions,
restraining negative impacts and supporting positive developments in economics.

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Major Concepts in the Law of Contract

1. Offer

An offer is a proposal of one party to enter into a contract with the other one which is
emphatic and precise on the terms it is proposing for. Any such proposal can be put in writing or
verbally; Offer can be classified as a one sided or two-sided contract. Unilateral contracts are those
whose terms have been pondered and terms have been extended to a certain undefined idea, that
is a group of people. For example, the publisher of the offer will pay a reward for the pet which
was lost, if it is paid for only when the conditions are met. This comprises an unsecured
engagement and therefore the defaulter only assumes responsibility to the extent to which
ownership is obtained.

As a contrast, a bilateral contract relates to a mutual privity of agreement since both parties
make promises to each other. For instance, in a sales contract, one party agrees to sell goods while
the other is willing to pay some monetary amount. In bilateral contracts, there are legal burdens
that both parties must perform.

Invitation to Treat vs Offer:

An invitation to treat is not an offer. An invitation to treat implies an invitation to another party to
make an offer. Such offers may in turn be accepted or rejected. An invitation to treat cannot be
accepted to form a valid contract.

Examples of invitations to treat include most advertisements.

General Rule:

Advertisements shall normally be considered as invitations to treat and not as offers.

Case Law Analysis: Partridge v Crittenden (1968)

o Facts: The defendant advertised in a magazine 'Bramblefinch cocks and hens, 25s each'.
Under the Protection of Birds Act 1954, it was illegal to sell birds of that type.

o Held: The court held that advertisement was merely an invitation to treat and not an offer.
The statement of the birds being for sale did not imply an undertaking by the seller to sell
to all that responded. Therefore, the defendant was not in breach of the Act.

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Exception:
For an advertisement to be considered an offer, it must be clear that no person is anticipated to
negotiate the offer further. An example is Carlill v Carbolic Smoke Ball Co (1893), where there
was clear undertaking by the advertiser to pay money upon compliance with the terms in the
advertisement.

Case Law Example:

Carlill v Carbolic Smoke Ball Co (1893)

o Facts: The manufacturers of a medicinal 'smoke ball' advertised that anyone who used the
ball properly and still caught influenza would be paid £100. Mrs. Carlill used the ball as
instructed and still became ill. The company argued that there was no binding contract
because Mrs. Carlill never directly notified them of her acceptance of the offer.
o Held: The court rejected the defendant's argument, holding that Mrs. Carlill's compliance
with the terms of the offer was sufficient to constitute acceptance. The court ruled that the
advertisement was not a mere sales puff and that Mrs. Carlill was entitled to the reward.

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 2. Acceptance

The unconditional and absolute agreement to all the terms of an offer. The general rule is that an
acceptance is not effective until it is communicated to the offeror.

The postal rule: this is an exception to the rule that the acceptance actually has to be communicated.
This rule states that acceptance is complete from the time the letter is posted.

(Adams v Lindsell, 1818)

Conditions for Valid Acceptance (Communication of Acceptance)

The communication of acceptance should be correctly done to the offeror, as in Entores v

Miles Far Eastern, 1955. It implies that the offeree will need actually to communicate to the offeror
that they accept the terms of an offer. Words, conduct, or performance may
be used to communicate acceptance. However, it must be definite and an
absolute mirror of the terms of offer without any change.

The leading case on this subject is Carlill v Carbolic Smoke Ball Co. In the
present case, the defendant advertised their product to avoid influenza and
give a reward of £100 to anyone who got the virus after using the product
in the prescribed manner. Mrs. Carlill used the smoke ball and became sick.
The court held that she had a right to the reward since her acceptance of
the offer was quite apparent from her actions, though there wasn't direct 4

communication between the parties initially regarding the same. Since this judgment was passed,
it has been a landmark in contract laws about what constitutes an acceptance in a unilateral
contract.

Related Cases in Modern-Day Contexts (e.g., Online Transactions)

Offers and acceptance can often be complicated in an online transaction. For example, A customer
places an order on a website, the confirmation of that order on the website is the acceptance, and
thus there is a binding contract. Raising questions as to whether these are actually accepted by the
user, which demonstrates how different acceptance is within a digital environment.

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Acceptance - https://shorturl.at/b21By

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 3. Consideration

Consideration is one of the primary requirements of a contract; it is 'something of value' exchanged

between parties. Examples of forms which consideration may take include money, goods, services,
or a promise not to do something. 'It is an act or forbearance on the part of one party to a contract
as the price of the promise made to him by the other party to the contract': Dunlop Pneumatic Tyre
Co v Selfridge & Co Ltd (1915). For consideration to be valid, it must be sufficient but need not
be adequate; that is, it must have some value in the eyes of the law.

Case Example: Currie v Misa (1875)

In Currie v Misa, for a contract to become enforceable, the court set that it had to be supported
by consideration. This case involved two parties where one had
loaned money from the other, which he promised to pay. In its ruling,
the court stated that a promise alone did not suffice with
consideration and, based on that fact, ruled that the contract was void.
This case indicates how vital consideration is in order to obtain a
binding contract.

Types of Consideration

• Executory Consideration: This is the consideration involving an exchange of promises

for some future performance. A good example is when a buyer asks a seller to deliver goods
"cash on delivery." In that case, payment and delivery are performed at a later date.

• Executed Consideration: This means an act performed at the time of the contract. A good
example is when money is exchanged for a newspaper and both the payment and delivery
occur simultaneously.

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Sufficient Consideration

Consideration must be of some monetary value however; this does not necessarily have to be
equivalent or even adequate. It must also be legal and of a type that can amount to valid
consideration as set out below:

o Chappell v Nestle Co Ltd (1959): Chocolate wrappers were held to suffice as part of the
consideration against records sold, even though their value was slight.

Past Consideration

Past consideration - that is, something done prior to the making of a promise - is not, as a rule,
sufficient.

o Re McArdle (1951): Promise to pay for home improvements made prior to agreement not
enforceable, since the consideration here was in the past and hence not valid.

In contrast:

o Re Casey’s Patents (1892): Promise to pay was enforceable even if part work had already
been executed, since there was implied promise in a business context.

Performance of an Existing Duty

The general rule is that performance of an existing statutory or contractual duty will not be
sufficient consideration. However, there are some significant exceptions to this, pertaining to
going beyond duties or conferring additional benefits:

Case Law Examples:

Collins v Godefroy (1831):

o Facts: A witness was promised payment for attending court.

o Held: The promise was unenforceable because the witness was already legally obliged to
attend.

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Promissory Estoppel

Promissory Estoppel The doctrine of promissory estoppel provides that a

party cannot deny a promise, whether supported by formal consideration
or not, if the following conditions are satisfied. In particular, the doctrine
applies when one party has relied on the promise to their detriment so as
to avoid unfairness. 6

Case Law Analysis: Central London Property Trust v High Trees House Ltd (1947):

o Facts: The landlord had promised a reduction of the rent because of low occupancy during
wartime. When the war ended, the landlord sought to recover the full amount of the rent
together with arrears of the full rent for the reduced period.
o Held: The court held that he could not claim arrears for the reduced period, since the
tenant had been induced by the promise. However, he was entitled, after the war, to
resume the collection of full rent.

Promissory estoppel is a shield, not a sword because it prevents somebody from breaking his
promise but not as a cause of action.

Privity of Contract

Privity of Contract is a doctrine of the law of contract that provides that only parties to a contract
have enforceable rights or obligations therein; meaning, in essence, that any third party cannot sue
for its enforcement, neither can he be held liable thereof.

Case Law Analysis: Tweddle v Atkinson (1861):

o Facts: A son was promised money under a contract between his father and his father-in-
law. When the father-in-law died, the son attempted to claim the money.
o Held: The son was unable to enforce the contract because he was not a party to it and
therefore had no rights under the agreement.

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Exceptions to the Doctrine of Privity:

• Collateral Contracts:

A third party may have enforceable rights if there is a collateral contract connected to the main
one.

Case Law Analysis: Shanklin Pier v Detel Products Ltd (1951): 7

o Facts: Shanklin Pier's owner hired painters to paint the pier and obliged them to use paint
prepared by Detel based on Detel's warranty on paint durability. As a result of paint failure,
Shanklin Pier instituted a suit against Detel for breach of warranty.
o Held: There was no direct contract between Shanklin Pier and Detel, but collateral contact
existed because of warranty provided by Detel that allowed Shanklin Pier to sue.

• Restrictive Covenants:

A third party can seek an obligation where a restrictive covenant is imposed upon land and
consequently binds future owners.

Case Law Analysis: Tulk v Moxhay (1848):

o Facts: Tulk sold land to Moxhay, upon the understanding that Moxhay would not build on
the land. Later, Moxhay attempted to build on the land. Tulk sued to enforce the restriction.
o Held: The court enforced the covenant, holding that Moxhay was bound by the promise
not to build, even though he was not party to the agreement. This is because restrictive
covenants run with the land.

• Contracts (Rights of Third Parties) Act 1999:

This allows a third party to enforce terms of the contract either if the contract expressly provides
for the same or where it is evident from the contract that the parties to the contract intended the
third party to benefit from such a contract.

• Agency: A principal can be bound by contracts made on their behalf by an agent.

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 4. Intention to Create Legal Relations

Social vs. Commercial Agreements

One of the major essentials for a contract to be enforceable is the intention to create legal relations.
It is presumed to exist in a commercial agreement as parties in such transactions enter into them
with the belief of the legal outcome. In social or domestic agreements, however, it is presumed not
to exist in the absence of clear evidence showing otherwise.

Case Law Examples:

Balfour v Balfour (1919) 8

o Facts: In Balfour v Balfour (1919), Mr. Balfour promised to pay his wife £30 a
month as an allowance while he was working abroad. After their separation, Mrs. Balfour
tried to enforce this promise in the court.
o Held: The court was of the view that there was no intention to create legal relations in
their domestic arrangement; therefore, the court was able to distinguish between social
agreements, which are not usually enforceable, and the commercial agreement where it
would be presumed that there existed such an intention.

Merritt v Merritt (1970)

o Facts: In Merritt v Merritt (1970), the separated spouses, Mr. and Mrs. Merritt, had
entered into a written agreement that showed on July 25th of 1957 Mr. Merritt must pay
Mrs. Merritt a specific sum of money every month.
o Held: The court was of the view that, in the case of Mrs. Merritt, there was an intention
to create legal relations since there had been a formal written agreement. In this case, the
implication is that, based on an agreement, even domestic agreements could have legal
consequences where there is apparently evidence of intentions.

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Related Cases in Modern-Day Contexts

While in the contexts of business, this is made clear due to written agreements and partnership
deeds specifying the duties and rights of all the partners, establishing legal intention. Equally,
websites dealing in e-commerce contain terms and conditions that serve to demarcate the intentions
of parties. Such terms secure that the users accept the legality in transaction, reinforcing intention
to create legal relations.

5. Capacity to Contract

Legal Age, Mental Soundness, and Disqualification

The capacity to contract encompasses the abilities of the consenting parties to the contract to be
bound. There are certain circumstances which may disqualify individuals from being able to do so
such as age, mental condition and legal disqualifications. In most cases, children are those
individuals below the age of 18 years and as such, they are treated as having a very limited ability,
allowing them to void contracts except for essential items like food and clothing. This legal
framework is designed to protect minors from entering into agreements they may not fully
understand or appreciate.

Case Law Analysis: Nash v Inman (1908)

Nash v Inman is probably one of the more significant cases in this respect; this is where a minor
purchased some quite expensive clothing and then attempted to back out of paying. The court ruled
in favor of the minor, where it explained that contracts by minors are voidable. Therefore, this
decision is representative of what protection contract law provides for persons without full
capacity. This supports the notion of minors not being subjected to an agreement they may not
understand.

Related Cases in Modern-Day Contexts

Capacity issues still confront the courts in today's modern context, especially how to deal with
minors' contracts. Now, electronic commerce has made things even more challenging about
whether minors may enter into a binding contract without their parent or guardian consent. Issues
like online purchases still involve significant questions about protection and contractual
considerations at this point in history.

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This ongoing evolution in the legal landscape underscores the importance of clearly defined
capacity to contract, especially in an era where digital transactions are prevalent. The ability of
minors to form contracts, the necessity of parental consent, and the implications of modern
technology continue to shape how capacity is understood and applied in contract law today.

6. Legality of Purpose

Contracts Void for Illegal Purposes

Any contract has to be within the law. Contracts that allow anyone to deal in drugs or to traffic
people are in fact void ab initio as they are said to be illegal from the beginning themselves and
are inherently unenforceable within any courts. The reason behind such an approach is that no
promise made under an illegal contract can ever be enforced because that would run against the
interest of the public and the society at larger.

Case Law Analysis: Everet v Williams (1725)

The Everet V Williams ratifies the point aforementioned. The court sought the help of law by
deciding that two thieves cannot go into contract about how they will divide the stolen property.
It’s affirmed that if a crime is committed, the courts will not assist one in the accomplishment of
such an offense by violating existing laws. By denying enforcement, the court upheld public
policy interests, ensuring that the legal system does not condone or support illegal conduct. This
case still attracts attention in contract law today, particularly due to the boundaries it sets with
respect to the ethical principles regarding contractual agreements.

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Related Cases in Modern-Day Contexts

Even nowadays, the outcomes of illegal contracts are still vivid. For example, in the case of drug
dealers, there are usually no legal measures which one can undertake to breach contracts on the
sale/distribution of drugs. There are no rights since such contracts are void by nature; hence, the
parties can’t go to court on grounds originating from such contracts.

In much the same manner, insider trading – another illegal activity wherein people trade while
having knowledge of information not disclosed to the public – contracts are also illegal. Such
agreements, it can be noted, are void because they encourage activities that violate provisions on
securities.

Also, the use of illegal means to carry out business activities including the signing of culpable
agreements draw attention to the requirement that contract formation must be for legal and valid
reasons. It must be borne in mind that courts are not always helpless and do possess the inherent
power aimed at preventing and correcting illegal acts where necessary.

7. Breach of Contract and Remedies

Types of Breaches: Minor vs. Major (Material) Breaches

A breach of contract can be defined as a failure of one of the parties to the agreement being
fulfilled as per the terms of the contract. Breach of contract can be divided into two main groups:
lesser breaches and material or major breaches. A minor breach of contract occurs when a party
does not carry out one of the terms as provided in the contract but this does not tend to affect the
contract’s performance in any way. On the other hand, a material breach basically makes the
contract useless and this empowers the other party to consider the whole agreement void.

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 10

Remedies for Breach: Damages, Specific Performance, Rescission

There are different kinds of remedies for breach of contract as it also depends on the type
of breach committed. The fundamental remedy is damages which are given to a party who has
suffered loss and this is done after proving that there was actually a loss due to the breach. One of
the principles that formed in the Hadley v Baxendale case (1854) was that damages should only
be granted for losses that could have been reasonably predicted at the time the contract was signed.

When there is insufficient leverage for monetary damages, specific performance can be ordered
by the court; this orders the breaching party to fulfill the contract terms that were violated. In other
words, rescission simply voids a contract and makes the parties revert to the positions that existed
before the parties entered into the contract.

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 8. Evolving Nature of Contract Law in the Modern World

Digital Contracts, E-Signatures, and Online Transactions

The development of new technologies has changed the definition of contract law. Digital
contracts refer to any online contract that is initiated and concluded over the internet. Electronic
signatures have legal validity in multiple countries thereby making it easy to sign contracts without
the requirement of ink. Laws in the US that include (ESIGN) and (UETA) support the use of
electronic signatures making the contracting process easier in the current global era.

Contract law within e-commerce or other similar online trade activities involves a number of
challenges and possibilities in terms of contracting. They have to adhere to consumer laws while
ensuring protection for user information. However, with the widespread use of online contracts,
there are legal issues that every enterprise and the end-users have to know.

9. The Impact of Artificial Intelligence and Automated Contracts (Smart Contracts)

The incorporation of artificial intelligence (AI) and the emergence of blockchain technology
changed everything including the way people enter into contracts, in which smart contracts were
developed. Smart contracts exist on distributed networks, allowing the automatic performance of
obligations set forth in the contract after certain conditions have been satisfied.

However, besides the advantages of employing smart contracts particularly with efficiency and
transparency, there are also issues of enforceability, interpretation of laws, and the requirement of
governance. It is necessary to attend carefully to issues of liability and the possibility of amending
the contract when necessary.

Now that smart contracts are being widely embraced by organizations, it’s important for contract
law practitioners and indeed everyone else to appreciate the effects of this technology on
established practices. Understanding how to write smart contracts into traditional legal structures
will be important for their successful application in different fields, such as finance or real estate.

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 Conclusion

This, therefore, allows us to conclude that legal contracts in contemporary society acts as
a pivot since it allows individuals and organizations to transact. In general contracts can be
understood through the concept of the basic principles of offer and acceptance accompanied by
consideration, intention, legal standing, legality of the act and consent of the parties involved.

With the development of the contract law and emergence of new technologies accompanied
by globalization the interest and responsibilities of legal practitioners also centers on the
transformation of the new challenges and horizons. The increasing use of electronic contracts,
smart contracts, and offshore contracts has accentuated the need for a sound legal framework that
protects the interests of all parties.

In the end, one can refer to any dealings that are both personal and business related and claim that
the comprehension of contract law is crucial as it allows the parties to make sure that the
agreements are fair, legally binding, and available.

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 References

General Contract Law Principles:

• Beatson, J., & Friedman, H. (2016). Contract Law (6th ed.). Oxford University Press.

• Poole, J. (2019). Textbook on Contract Law (14th ed.). Oxford University Press.

Offer/Acceptance:

• Carlill v. Carbolic Smoke Ball Co [1893] 1 QB 256. British and Irish Legal Information
Institute.
• Fisher v. Bell [1961] 1 QB 394. Westlaw UK.
• Adams v. Lindsell (1818) 106 ER 250. British and Irish Legal Information Institute.
• Entores Ltd v. Miles Far East Corporation [1955] 2 QB 327. Westlaw UK.
• McKendrick, E. (2020). Contract law (11th ed.). Palgrave Macmillan.
• Chen-Wishart, M. (2018). Contract law (5th ed.). Oxford University Press.
• Roughton, A. (2021). Contract formation in the digital age: Challenges and developments.
Journal of Contract Law, 37(2), 112-130.

Consideration:

• Dunlop Pneumatic Tyre Co v. Selfridge & Co Ltd [1915] AC 79.

• Currie v. Misa (1875) LR 10 Ex 153.
• Chappell & Co Ltd v. Nestle Co Ltd [1959] RPC 1.
• White v. Bluett (1853) 23 LJ Ex 36.
• Re McArdle [1951] Ch 669.
• Re Casey’s Patents [1892] 1 Ch 104.
• Collins v. Godefroy (1831) 10 Bing 252.
• Central London Property Trust Ltd v. High Trees House Ltd [1947] KB 130.
• Tweddle v. Atkinson (1861) 1 B & S 393.
• Shanklin Pier v. Detel Products Ltd [1951] 2 KB 854.
• Tulk v. Moxhay (1848) 2 Ph 774.

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Intention to Create Legal Relations:

• Balfour v. Balfour [1919] 2 KB 571.

• Merritt v. Merritt [1970] 1 WLR 1211.
• Simpson v. Pays [2005] EWCA Civ 189.

Capacity to Contract:

• Nash v. Inman [1908] 2 KB 1.

Legality of Purpose:

• Everet v. Williams (1725) 2 Ld Raym 1387.

Breach of Contract and Remedies:

• Hadley v. Baxendale [1854] 9 Exch 341.

Digital Contracts and E-Signatures:

• Electronic Signatures in Global and National Commerce Act (ESIGN), 2000.

• Uniform Electronic Transactions Act (UETA), 1999.

Smart Contracts and AI in Contract Law:

• Szabo, N. (1997). "Smart contracts." Extropy Institute.

• Raskin, M. (2017). "The law and legality of smart contracts." The Georgetown Law
Journal.

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