The contract
Many commercial deals take place between large organisations, which
trade with each other in the supply of goods and services, and it is assumed
that, on the whole, they have the resources to make fair bargains. However,
a huge number of deals take place every day which form contracts between
ordinary people and those in commerce in some way. All of these ‘deals’,
involving the exchange of money for goods or services, form contracts, so
you may like to read the chapters on the formation of a contract (Chapters
2–4) and on the incorporation of terms (Chapter 7).
If there is no contract, less protection is available, and in many cases,
there is no protection. So if, for example, a person is given a hairdryer by
a friend for a present, the contract of sale is between the buyer and seller.
If the hairdryer does not work, the legal remedy is for the buyer to return it
to the shop, not the friend (although in practice a shop will often give an
exchange item or refund of money to maintain good customer relations).
Of course there may be other remedies both within and outside the field
of contract law. If the buyer is misled into purchasing the hairdryer
because of false statements by the shop assistant about its capabilities
there may be a remedy in misrepresentation (Chapter 11). If the hairdryer
not only malfunctioned, but also injured the user, there would be remedy
not only in contract but also in the tort of negligence, in addition to any
statutory protection.
The consumer
A person in a consumer situation often has little bargaining power and is
less able to negotiate freely than is a person in a business situation.
Recognising this, the courts have in many cases tried to protect individuals,
but the great bulk of protection has come from Acts of Parliament, in an
236 Contract law