History of contract law

More than appeared from the general rules in Ancient Greece, Roman law represented an early division between specific kinds of contract, depending on the transaction's nature.

A jury would be called, but to access the royal courts, which were fixed by Magna Carta to meet in London, some breach of the King's peace had to be alleged.

For instance, in 1317 one Simon de Rattlesdene alleged he was sold a tun of wine that was contaminated with salt water, "with force and arms, namely with swords and bows and arrows".

The judges of the Court of the King's Bench was prepared to allow "assumpsit" actions (for obligations being assumed) simply from proof of the original agreement.

[13] Around the same time the Common Pleas indicated a different limit for contract enforcement in Bret v JS,[14] that "natural affection of itself is not a sufficient consideration to ground an assumpsit" and there had to be some "express quid pro quo".

[15] Now that wager of law, and sealed covenants were essentially unnecessary, the Statute of Frauds 1677 codified the contract types that were thought should require some form.

Increasingly, English contract law was affected by its trading relations with northern Europe, particularly since Magna Carta guaranteed merchants "safe and secure" exit and entry to England "for buying and selling by the ancient rights and customs, quit from all evil tolls".

The "Easterlings" who came to trade brought goods and money that the English came to call "Sterling",[17] and standard rules for commerce that formed a Lex Mercatoria, the laws of the merchants.

[28] However, this liberty isn't complete because it cannot overstep the principle of free consent[29] and because the contrat cannot ignore the formalism required by the authorities[30] or have an immoral object.

[31] The members of the School of Salamanca also thought, following Luis de Molina, that contracts have been established for common utility[32] and consequently, that natural law can't tolerate a privileged party.

"[38] The Judicature Act 1875 merged the Courts of Chancery and common law, with equitable principles (such as estoppel, undue influence, rescission for misrepresentation and fiduciary duties or disclosure requirements in some transactions) always taking precedence.

But the essential principles of English contract law remained stable and familiar, as an offer for certain terms, mirrored by an acceptance, supported by consideration, and free from duress, undue influence or misrepresentation, would generally be enforceable.

[39] Further requirements of fairness in exchanges between unequal parties, or general obligations of good faith and disclosure were unwarranted because was said that liabilities "are not to be forced upon people behind their backs".

Internationally, the UK had joined the European Union, which aimed to harmonise significant parts of consumer and employment law across member states.