Function

Contract law governs the enforcement of promises and agreements, determining which are legally binding, their terms, and implications in disputes. It requires offer, acceptance, and mutual exchange. Obligations under contracts are typically unconditional, and parties must fulfil promises regardless of effort or difficulty unless exceptional circumstances, like unforeseen events, frustrate the contract. For example, a buyer unable to secure a loan remains bound unless the contract explicitly made this a condition.

The content of contracts is generally not regulated; even unwise agreements are enforceable unless exploitative or contrary to law. Consumer protection laws may restrict unfair terms. Contracts can be verbal or written, ranging from routine purchases to complex agreements, with implied terms often filling gaps in simpler contracts. Specific statutes override some terms in employment or consumer contracts to ensure fairness.

Everyday transactions, such as buying goods, involve contracts. Issues arise if goods are faulty, entitling buyers to remedies like replacements or compensation. Breaches, whether by buyers or sellers, lead to liability for losses, with parties required to mitigate damages. Courts may order compensation or enforce promises but do not impose criminal penalties.

Contract law underpins economic certainty, ensuring promises are honoured. Breaches result in compensation for loss, reflecting market principles without punitive measures.

Read a detailed Article on this subject with the Legislation and Cases, browse Irish Legal Guide  or Contact Us for advice below.