ABSTRACT
The nature of a contract In business and commercial life the law of contract underpins a huge range of activities as diverse as engaging staff, buying supplies, arranging insurance, leasing premises, raising loans and buying shares. These transactions all involve making a contract which must comply with the general principles governing all contracts. The modern law of contract has largely evolved from case law, although major pieces of legislation such as the Unfair Contract Terms Act 1977 have radically altered some of the rules. There is no complete code of rules governing the making of a contract. The courts have generally taken a laissez-faire approach to the making of contracts, indicating that the parties are free to make the contract of their choice, with which the courts will rarely interfere. Although this is a guiding principle the law will intervene in certain circumstances, as will be explained below.
