Australian contract law

The law of contract in Australia is similar to the contract law of other Anglo-American common law jurisdictions, but differences from other jurisdictions have arisen over time because of statute law and divergent development of common law in the High Court, particularly since the 1980s.

Australian courts take the view that contract law arose in the actions of assumpsit, and concepts of motive and reliance.

Bargain theory is an important part of how contract law is understood; quid pro quo, is understood to be an essential element.

The law of equity plays an important role in Australian contracts, and will affect which remedies may be available when a contractual promise is breached.

Doctrines of importance to contract law practitioners include negligent mis-statement, promissory estoppel, and misleading or deceptive conduct.

There are five essential elements necessary for legally binding contract formation:

The absence of any of these elements will signify either that there is in law no agreement or that the agreement is not enforceable as a contract.

In most jurisdictions contracts do not need to be represented in writing and oral contract are as enforceable as written contracts. However, there are a number of exceptions that have been created by statute follow from the Statute of Frauds 1677 (UK) and were principally designed to reduce fraud. Examples are marine insurance which is not enforceable unless it is documented in writing. Also consumer credit must be documented in written form with a copy provided to the consumer. Similar formalities are required for the sale of land. The courts however will intervene so that the Statute of Frauds is not made an instrument of fraud.