By Richard Stone
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Extra resources for The Modern Law Of Contract, 5th edition
13 See Lord Wilberforce in New Zealand Shipping Co Ltd v AM Satterthwaite & Co Ltd, The Eurymedon  AC 154, p 167;  1 All ER 1015, pp 1019–20. 6. 1. 10. 11. Chapter 1: Introduction 5 however, since there are situations in which clear and explicit promises are not enforced. 18 In other areas where apparently gratuitous promises have been held to be binding, such as in the case of Williams v Roffey Bros & Nicholls (Contractors) Ltd,19 the courts have been at pains to find ‘consideration’, even if this has involved ‘stretching’ this concept so as not to be seen to be departing from the orthodoxy that gratuitous promises are not binding.
If there is a statutory obligation to enter into a form of agreement the terms of which are laid down, at any rate in their most important respects, there is no contract. We may therefore use the definition at the beginning of this paragraph, in terms of voluntary transactions, as a broad indication of the situations with which we are concerned. The rules of contract law help to determine which transactions will be enforced by the courts and on what terms. They also provide a framework of remedies, when contracts are broken.
See also Collins, 1999. 25 Ibid, p 28. 1. 6 The Modern Law of Contract of goods or services – do involve ‘exchange’. A person transfers the ownership of goods to another in exchange for the price; work is done in exchange for wages; a company agrees to licence the use of a patented process in exchange for royalties. There are, however, situations which do not properly involve an exchange, which are nevertheless treated as contracts. First, there are those transfers of property which are effected by a formal deed.