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Table Of Contents

1.1 THE CLASSICALLAW OF CONTRACT
INTRODUCTION
1.2 THE SUBJECT MATTER OF CONTRACT LAW
1.2.1Voluntary transactions
1.3 DISCRETE AND RELATIONALTRANSACTIONS
1.4 CONTRACT, TORT AND RESTITUTION
1.5 ALAW OF CONTRACT OR LAW OF CONTRACTS?
1.6 DIFFERENT APPROACHES TO ANALYSING CONTRACT
1.6.1Economic analysis
1.6.2Socio-political analysis
1.6.3Empirical research
1.6.4Which approach?
1.7 INTERNATIONALINFLUENCES
2.1 INTRODUCTION
FORMING THE AGREEMENT
2.2 DEEDS AND OTHER FORMALITIES
2.3 GENERALLACK OF FORMALREQUIREMENT
2.3.1Promisor, promisee and detached objectivity
2.3.2State of mind
2.4 THE EXTERNALSIGNS OF AGREEMENT
2.5 HISTORICALBACKGROUND
2.6 OFFER
2.6.1Distinction from ‘invitation to treat’
2.9 AUCTIONS
2.10 ACCEPTANCE
2.10.1Distinction from counter-offer
2.10.2Request for information
2.10.3Battle of the forms
2.10.4The traditional view
2.10.5An alternative approach
2.11 METHODS OF ACCEPTANCE
2.11.1Acceptance by conduct
2.11.2Acceptance by silence
2.11.3Bilateral contracts
2.11.4Inertia selling
2.11.5Conclusions on ‘silence’
2.11.6Acceptance by post
2.11.7Limitations on the postal rule
2.11.8Acceptance by private courier
2.11.9Acceptance by electronic communication
2.11.10The Entores approach
2.11.11Time of acceptance
2.11.12Acceptance in internet transactions
2.11.13Acceptance in unilateral contracts
2.11.14Position in ‘reward’contracts
2.11.15Acceptance in ignorance of an offer
2.11.16Unilateral contracts and ‘agreement’
2.11.17Cross-offers
2.12 ACCEPTANCE AND THE TERMINATION OF AN OFFER
2.12.1Need for communication
2.12.2Effect of lapse of time
2.12.3Revocation and tenders
2.13 RETRACTION OF ACCEPTANCE
2.13.1Formalist approach
2.13.2Purposive approach
2.13.3Unfairness to offeror
2.13.4Guidance from authority
2.14 CERTAINTYIN OFFER AND ACCEPTANCE
2.14.1Meaningless phrases
2.14.2Incomplete agreements
2.14.3Obligations distinguished from ‘machinery’
3.1 DEEDS
TESTS OF ENFORCEABILITY
3.2 CONSIDERATION OR RELIANCE
3.3 BENEFIT AND DETRIMENT
3.4 MUTUALPROMISES
3.5 CONSIDERATION NEED NOT BE ‘ADEQUATE’ BUT MUST BE ‘SUFFICIENT’
3.5.1Economic value
3.6 PAST CONSIDERATION IS NO CONSIDERATION
3.6.1The common law exceptions
3.6.2Exceptions under statute
3.7 PERFORMANCE OF EXISTING DUTIES
3.7.1Existing duty imposed by law: public policy
3.7.2Public duty: exceeding the duty
3.7.3Existing contractual duty owed to third party
3.7.4Duty to third party: commercial application
3.7.5Performance or promise?
3.7.6Existing duty to the same promisor
3.7.7Going beyond the existing duty
3.7.8Are-consideration: Williams v Roffey88
3.7.9Williams v Roffey: effect on Stilk v Myrick93
3.7.10 Limitation on Williams v Roffey
3.8 CONSIDERATION AND THE VARIATION OF CONTRACTS
3.8.1Need for accord and satisfaction
3.8.2The concept of ‘waiver’
3.9 THE DOCTRINE OF PROMISSORYESTOPPEL
3.10 PROMISSORYESTOPPELAND CONSIDERATION
3.10.1There must be an existing legal relationship
3.10.2There must have been (detrimental) reliance
3.10.5The doctrine is only suspensory in its effect
3.11 PROMISSORYESTOPPELAND THE PART PAYMENT OF DEBTS
3.11.1The decision in Foakes v Beer
3.12 OTHER TYPES OF ESTOPPEL
3.13 ALTERNATIVE TESTS OF ENFORCEABILITY
3.13.1What does ‘consideration’really mean?
3.13.2‘Reliance’as a test of enforceability
3.13.3‘Promise’as a test of enforceability
INTENTION TO CREATE LEGALRELATIONS
4.1 DOMESTIC AGREEMENTS
4.2 COMMERCIALAGREEMENTS
4.3 COLLECTIVE AGREEMENTS
4.4 IS AREQUIREMENT OF INTENTION NECESSARY?
5.1 THE RATIONALE FOR THE DOCTRINE
PRIVITY
5.2 DEVELOPMENT OF THE DOCTRINE
5.2.1Affirmation by the House of Lords
5.2.2Aspecial case: multi-party contracts
5.3 EVADING THE DOCTRINE
5.4 THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
5.4.1 The main effect
5.4.2 Changing the agreement
5.4.3Defences
5.4.4Protection from double liability
5.4.5Exceptions
5.4.6Effect of the Act
5.5 PRINCIPLES OF EUROPEAN CONTRACT LAW
5.6 DAMAGES ON BEHALF OF ANOTHER
5.7 THE TRUST OF APROMISE
5.7.1Intention to create a trust
5.7.3Intention to benefit must be irrevocable
5.7.4Effects of a trust
5.7.5Conclusion on trust device
5.8 COLLATERALCONTRACTS
5.9 THE TORT OF NEGLIGENCE
5.10 STATUTORYEXCEPTIONS
5.11 PRIVITYAND EXCLUSION CLAUSES
5.11.1Vicarious immunity
5.11.2Modification of the duty of care
5.12 IMPOSING BURDENS: RESTRICTIVE COVENANTS
5.12.1Application outside land law
5.12.2The current position
5.13 THE ROLE OF THE LAW OF TORT
6.1 AGENCY
6.1.1Relevance of labels
AGENCY AND ASSIGNMENT
6.1.2Relationship to doctrine of privity
6.1.3Commercial agents
6.1.4Creation of agency
6.1.5The powers of an agent
6.1.6Ratification
6.1.7Duties of the agent
6.1.8Duties of the principal
6.1.9Position of third party vis à vis the principal
6.1.10Liability of principal
6.1.11Position of third party vis à vis the agent
6.1.12Termination of agency
6.2 ASSIGNMENT
6.2.1Section 136 of the Law of Property Act 1925
6.2.2Equitable assignment
7.4 MINORS’ LIABILITYIN TORT
7.5 MENTALDISABILITY
7.6 INTOXICATION
8.1 INTRODUCTION
8.2 DISTINCTION BETWEEN REPRESENTATIONS AND TERMS
THE CONTENTS OF THE CONTRACT
8.2.1Was the contract put into written form?
8.3 REMEDIES FOR PRE-CONTRACTUALSTATEMENTS
8.3.1Misrepresentation
8.3.2Collateral contract
8.3.3Limitations of the ‘collateral contract’
8.3.4Negligent misstatement
8.3.5Conclusion on pre-contractual statements
8.4 EXPRESS TERMS
8.4.1Incorporation
8.4.2Construction
8.4.3‘Purposive’or ‘commercial’interpretation67
8.4.4Interpretation under the Principles of European Contract Law
8.4.5Conditions, warranties and innominate terms
8.5 IMPLIED TERMS
8.5.1Terms implied by the courts
8.5.2Terms implied by custom
8.5.3Terms implied in fact
8.5.4The Moorcock test
8.5.5The ‘officious bystander’test
8.5.6Terms implied by law
8.5.7Liverpool City Council v Irwin(1976)
8.5.8Terms implied by statute
8.5.9Implied terms under the Sale of Goods Act127
8.5.10Title
8.5.11Description
8.5.12Satisfactory quality137
8.5.13Fitness for a particular purpose
8.5.14Sale by sample
8.5.15Implied terms under the Principles of European Contract Law
8.6 STATUTORYCONTROLS
9.1 INTRODUCTION
CLAUSES EXCLUDING OR LIMITING LIABILITY
9.2 COMMON LAW RULES
9.3 INCORPORATION
9.3.1Relevance of time
9.3.2Requirement of ‘reasonable notice’
9.3.3Incorporation and unusual exclusions
9.3.4Need for a ‘contractual’document
9.4 CONSTRUCTION
9.4.1Contra proferentemrule
9.4.2Relaxation of the rule of construction
9.4.3Fundamental breach
9.4.4The current position
9.5 STATUTORYCONTROLS
9.6 UNFAIR CONTRACT TERMS ACT 1977
9.6.1Scope of the UCTA1977
9.6.2‘Business’liability
9.6.3Meaning of business
9.6.4Disclaimers
9.6.5Exclusion of negligence under the UCTA1977
9.6.6Standard terms and consumer contracts
9.6.7Meaning of ‘in the course of a business’
9.6.8Standard terms of business
9.6.9Effect of s 3
9.6.10The requirement of reasonableness
9.6.11Interpretation of reasonableness
9.6.12Guidelines in Sched 2
9.6.13Judicial approach to ‘reasonableness’– pre-UCTA1977
9.6.14The UCTA1977 in the House of Lords
9.6.15‘Reasonableness’in the Court of Appeal
9.6.16Indemnities
9.6.17Guarantees of consumer goods
9.6.18Exclusions in contracts for the supply of goods
9.6.19Exclusion of liability for misrepresentation
9.7 UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS 1999151
9.7.1Application of the Regulations
9.7.2Terms attacked
9.7.3The requirement of ‘plain, intelligible language’
9.7.4General supervision
9.8 PRINCIPLES OF EUROPEAN CONTRACT LAW
10.1 INTRODUCTION
MISREPRESENTATION
10.1.1Other remedies for pre-contractual statements
10.2 MISREPRESENTATION
10.2.1Statement by one party to the other
10.2.2Statement of existing fact
10.2.3Misrepresentation by silence
10.2.4Misrepresentation must induce the contract
10.3 REMEDIES FOR MISREPRESENTATION
10.3.1Rescission
10.3.2Operation of rescission
10.3.3Damages at common law
10.3.4False statements and the tort of negligence
10.3.5Indemnity at common law
10.3.6Damages under s 2(1) of the Misrepresentation Act 1967
10.3.7Measure of damages under s 2(1)
10.3.8Damages under s 2(2) of the Misrepresentation Act 1967
10.4 EXCLUSION OF LIABILITYFOR MISREPRESENTATION
11.1 INTRODUCTION
MISTAKE
11.2 CATEGORIES OF MISTAKE
11.3 PRINCIPLES OF EUROPEAN CONTRACT LAW
11.4 MISTAKE NULLIFYING AGREEMENT (‘COMMON MISTAKE’)20
11.4.1Subject matter which never existed
11.4.2Impossibility of performance
11.4.3Mistake as to quality
11.4.4Effect of an operative common mistake
11.5 MISTAKES NEGATIVING AGREEMENT
11.5.1‘Mutual mistake’
11.5.2Unilateral mistake
11.5.3Mistaken identity
11.5.4Contracts made ‘face to face’
11.6 MISTAKE IN EQUITY
11.7 FORMS OF EQUITABLE RELIEF
11.7.1Refusal of specific performance
11.7.2Rescission on terms
11.7.3Rectification
11.7.4Bars to rescission or rectification
11.8 CONTRACTS SIGNED UNDER AMISTAKE
11.8.1Availability of the plea
11.8.2Nature of the mistake
11.9 CONCLUSIONS ON ‘MISTAKE’
12.1 INTRODUCTION
12.2 DURESS BYPHYSICALTHREATS OR COERCION
12.3 ECONOMIC DURESS
12.3.1Industrial action
12.3.2Breach of contract
12.3.3 Must the threat be of an unlawful act?
12.4 REMEDIES FOR DURESS
12.5 DURESS UNDER THE PRINCIPLES OF EUROPEAN CONTRACT LAW
13.1 UNDUE INFLUENCE: THE CONCEPT
UNDUE INFLUENCE
13.2 ACTUALUNDUE INFLUENCE
13.3 PRESUMED INFLUENCE: RECOGNISED RELATIONSHIPS
13.4 PRESUMED INFLUENCE: OTHER RELATIONSHIPS
13.5 REQUIREMENT OF ‘MANIFEST DISADVANTAGE’
13.6 UNDUE INFLUENCE AND THIRD PARTIES
13.6.1Agency
13.6.2Special equity
13.6.3The O’Brien analysis
13.6.4The doctrine of notice
13.6.5Relationships covered
13.6.6Application of doctrine of notice
13.6.7Application of the doctrine of notice to actual undue influence
13.6.8Relevance of disadvantage nature of transaction
13.6.9Consequences for creditors
13.6.10Practical consequences: Royal Bank of Scotland v Etridge (No 2)
13.7 REMEDIES FOR UNDUE INFLUENCE
13.7.1Change in value of property
14.4.1Criminal liability
14.4.2Civil liability
14.5 EFFECTS OF ILLEGALITY: ENFORCEMENT
14.6 EFFECTS OF ILLEGALITY: RECOVERYOF MONEYOR PROPERTY
14.6.1General rule: no recovery
14.7 EXCEPTIONS TO THE GENERALRULE
14.7.1Illegal purpose not yet carried out
14.7.2Oppression
14.7.3Fraud
14.7.4No reliance on the illegal transaction
14.7.5Class-protecting statutes
14.8 SEVERANCE
14.9 PROPOSALS FOR REFORM98
15.1 INTRODUCTION
AGREEMENTS CONTRARY TO PUBLIC POLICY
15.2 CONTRACTS CONCERNING MARRIAGE
15.2.1Future separation
15.2.2Restraint of marriage
15.2.3Marriage brokage
15.3 CONTRACTS PROMOTING SEXUALIMMORALITY
15.4 CONTRACTS TO OUST THE JURISDICTION OF THE COURT
15.5 HUMAN RIGHTS ACT 1998
15.6 EFFECT OF CONTRACTS VOID AT COMMON LAW
15.7 WAGERING CONTRACTS
15.7.1Definition of ‘wager’
15.7.2Exceptions
15.7.3Effect of wagering contracts
16.1 INTRODUCTION
16.2 RESTRAINT OF TRADE UNDER THE COMMON LAW3
CONTRACTS RESTRICTING COMPETITION
16.3 CONTRACTS RELATING TO EMPLOYMENT OR THE SALE OF ABUSINESS
16.3.1Must have a valid interest
16.3.2Restraint must be reasonable
16.3.3Public interest
16.3.4Effect of breach of contract
16.4 CONTRACTS OF EXCLUSIVE DEALING
16.4.1Restraints on songwriters and other entertainers
16.5 TRADE ASSOCIATIONS
16.6 SEVERANCE
16.6.1Severance of consideration
16.6.2Severance of promises
16.6.3The Blue Pencil Test
16.6.4Nature of the contract must be retained
16.6.5The current approach
16.7 LEGISLATIVE CONTROLS ON ANTI-COMPETITIVE CONTRACTS52
16.7.1Introduction
16.7.2Competition Act 1998, Chapter I prohibition
16.7.3Competition Act 1998, Chapter II prohibition
17.1 THE NATURE OF THE DOCTRINE
17.1.1Original rule
FRUSTRATION1
17.1.2Subsequent mitigation
17.2 FRUSTRATING EVENTS
17.2.1Destruction of the subject matter
17.2.2Personal services – supervening incapacity
17.2.3Non-occurrence of an event
17.2.4Government intervention
17.2.5Supervening illegality
17.2.6Other frustrating events
17.3 LIMITATIONS ON THE DOCTRINE
17.3.1Self-induced frustration
17.3.2Events foreseen and provided for
17.3.3Land
17.4Effects of the doctrine: common law
17.4.1Automatic termination
17.4.2Future obligations only discharged
17.5 EFFECTS OF FRUSTRATION: THE LAW REFORM (FRUSTRATED CONTRACTS) ACT 1943
17.5.1Section 1(2): money paid or payable prior to frustration
17.5.2Section 1(3): compensation for a ‘valuable benefit’
17.5.3Conclusions on the LR(FC)A1943
17.6 PRINCIPLES OF EUROPEAN CONTRACT LAW
17.6.1Change of circumstances103
17.6.2Excuse due to an impediment
18.1 INTRODUCTION
18.2 DISCHARGE BYPERFORMANCE
18.2.1Performance must be precise and exact
DISCHARGE BY PERFORMANCE OR BREACH
18.2.2Partial provision of services
18.2.3Divisible contracts or obligations13
18.2.4Non-performance due to other party
18.2.5Acceptance of partial performance
18.2.6Substantial performance
18.3 TENDER OF PERFORMANCE
18.3.1Definition of tender
18.3.2Tender of money
18.3.3Time
18.4 DISCHARGE BYBREACH
18.4.1Effect of breach
18.4.2Nature of repudiatory breach
18.4.3Sale of Goods Act 1979: implied conditions and warranties
18.4.4Categorisation of terms: the courts’approach
18.4.5Categorisation of terms: labelling by the parties
18.4.6Consequences of categorisation
18.4.7Intermediate terms
18.4.8Effects of Hong Kong Fir
18.5 SOME SPECIALTYPES OF BREACH
18.5.1Long term contracts
18.5.2Instalment contracts
18.5.3Commercial destruction
18.6 ANTICIPATORYBREACH
18.7 EFFECT OF BREACH: RIGHT OF ELECTION
18.7.1Need for communication
18.7.2Risks of acceptance
18.7.3Risks of affirmation
18.8 TERMINATION UNDER THE PRINCIPLES OF EUROPEAN CONTRACT LAW
19.2 DAMAGES: PURPOSE
REMEDIES
19.3 DAMAGES: MEASURE
19.3.1Expectation interest
19.3.2Reliance interest38
19.3.3Restitution
19.3.4Consequential losses
19.3.5Supervening events
19.3.6Non-pecuniary losses
19.4 LIMITATIONS ON RECOVERY
19.4.1The rule of remoteness
19.4.2The rule in Hadley v Baxendale
19.4.3Relevance of knowledge
19.4.4‘Reasonable contemplation’test
19.4.5 Degree of risk
19.4.6Mitigation
19.4.7Contributory negligence
19.5 LIQUIDATED DAMAGES AND PENALTYCLAUSES
19.5.1Application of the principles
19.6 SPECIFIC PERFORMANCE
19.6.1Adequacy of damages
19.6.2Need for supervision
19.6.3Personal services
19.6.4Need for mutuality
19.6.5Hardship
19.6.6Claimant must have acted equitably
19.7 INJUNCTIONS
19.8 REMEDIES UNDER THE PRINCIPLES OF EUROPEAN CONTRACT LAW
19.8.1Damages: measure
19.8.2Remoteness
19.8.3Mitigation
19.8.4Contributory negligence
19.8.5Liquidated damages and penalty clauses
19.8.6Specific performance
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The Modern Law of Contract

The Modern Law of Contract

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Published by Wilson Da Silva

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Published by: Wilson Da Silva on Jul 21, 2011
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