This edition updates recently decided cases and new legislation. It provides a treatment of the main principles of the law of contract, with a selective presentation of key topics, described and analyzed at an appropriate depth for undergraduate study. The book is intended to provide a basic framework for the subject, particularly suitable for part-time, distance-learning and CPE courses, as well as more traditional full-time courses where learning is becoming increasingly student-centred and modularized. Split into six parts, the first section covers the formation of a contract. Part two deals with the contents of the contract, including terms and exemption clauses. The last part of the book covers the rights and liabilities of third parties to the contract.