Presentation Transcript

1. Contractlaw

   Revision
2. Preview Formationof a contract Capacity Thecontentsof a contract Vitiatingfactors Dischargeof a contract Remedies
3. Formationof a contract: offerandacceptance Anoffer must becommunicated but canbemade to thewhole world or to anindividual (Carlill v CarbolicSmoke Ball Co. Ltd) Anoffercanbewithdrawnany time up to acceptanceandthiscanbethrough a reliable third party (Dickinson v Dodds) Inunilateraloffersacceptance is done throughperformanceandtheoffercannotbewithdrawnwhileperformance is underway (Errington v Errington&Woods)
4. Formationof a contract: offerandacceptance Acceptance must beunconditionaland a counteroffermeanstheoffer is no longeropen to accept (Hyde v Wrench) Silencecanneverbeacceptance (Felthouse v Bindley)
5. Formationof a contract: consideration Consideration is the price for whichthepromiseoftheother is bought (DunlopPneumaticTyreCo. V Selfridge&Co.) Consideration must be real, tangibleandofvalue (Chappel v Nestle) Past consideration is no consideration (ReMcArdle) Consideration must movefromthepromisee (Tweddle v Atkinson)
6. Formationof a contract: intention to create legal relations Domesticarrangements are presumednot to give rise to legal relations (Balfour v Balfour) unlessthecontrary is proved (Merritt v Merritt) Businessarrangements are presumed to leadto legal relations (Edwards v SkywaysLtdunless a contraryintentcanbeshown (Rose and Frank Co v J R Crompton & Bros)
7. Capacity Corporations are limitedintheircapacity to contractRolled Steel Products (Holdings) Ltd v British Steel Corporation)bytheirobjectsclause Minors are bound to pay a reasonable price for necessariesactuallydelivered (Nash v Inman) andemploymentcontractssubstantially for theirbenefit (De Francesco v Barnum) but canavoidcontractsofcontinuousobligation (Steinberg v Scala (Leeds) Ltd.)
8. Thecontentsof a contract: terms Terms must beincorporatedintothecontract (OscarChessLtd v Williams) Parties are boundbycontractstheyhavesigned (L’Estrange v Graucob) Termscanbeimpliedinto a contracte.g. for businessefficacy (TheMoorcock) but this must representthepresumedintentionofbothparties(Shell (UK) Ltd v LostockGaragesLtd)
9. Thecontentsof a contract: terms Termscanalsobeimpliedbycommonlaw (Liverpool City Council v Irwin) as wellasby statute (e.g. Sale ofGoodsAct 1979) Termscanbeconditionsgoing to therootofthecontractandallowing for repudiation as wellasanaction for damages (Poussard v SpiersandPond) or warrantiesonlygiving rise to damages (Bettini v Gye)
10. Thecontentsof a contract: exclusionclauses Exclusionclausesmayaffectconsumersadverselyso, to beincorporated, thepartysubjecttothem must beawareofthem (Olley v Marlborough Court Hotels) They are notincorporatedifin a formnoteasilyrecognisable as contractual (Curtis v Chemical cleaningCo)andthepartyseeking to rely on them must makeeveryeffort to communicatetothepartysubjecttothem (Thornton v Shoe Lane Parking)
11. Thecontentsof a contract: exclusionclauses UndertheUnfairtermsinConsumerContractsRegulations a term must notbeanunfairsurprise or becontrary to goodfaith (Director General ofFairTrading v First National Bank)
12. Vitiatingfactors: misrepresentation Misrepresentation – a falsestatementofmaterialfactsused to induce a party to enter a contract (Edgington v Fitzmaurice) M. canbe: Fraudulent – madeknowingly Reckless Negligent
13. Vitiatingfactors: mistake Common m. – whenbothpartiesmistaketheexistenceof a subject-matterthecontract is void (Couturier v Hastie), but a commonmistake as to qualityhas no effect on thecontract(Bell v LeverBros) Mutual mistake – whentheparties are at crosspurposesthecontractmaybevoid Unilateral m.- where one party is mistakenandtheotherknowsofthemistakethecontractisvoid
14. Vitiatingfactors: duress A contractmaybeavoidedwhere it is made as a resultofthreatsofviolence (Barton v Armstrong) Thisappliesalsowhere a party is put underexcesscommercialpressure (Express v Kafko)
15. Vitiatingfactors: undue influence Traditionally a personinaspecialrelationshipcouldavoidacontractmadethroughunfair influence (Allcard v Skinner) Otherwisetheunfairpressure must beproved (National Westminster bank v Morgan)
16. Vitiatingfactors: illegality Some contracts are prohibitedby statute (Cope v Rowlands) Commonlawmakesimmoralcontractsunenforcable (Pearce v Brooks) andthosebased on corruption (Parkinson v CollegeofAmbulance)
17. Dischargeofcontract: performance Thebasicrule: inanentirecontract all obligations must beperformed (Cutter v Powell) Anexception is wherepartperformanceisfreelyaccepted (Sumpter v Hedges) or where a partyhassubstantiallyperformed (Hoenig v Isaacs) A party is notbound to performwhen he hasbeenpreventedbytheotherparty (Planche v Colbourn)
18. Dischargeofcontract: agreement Partiescanagree to endobligationsbyeachprovidingconsideration for a new agreement to endexistingobligations (British RussianGazetteLtd v AssociatedNewspapersLtd)
19. Discharge: frustration Traditionallypartieswereboundbyabsoluteobligation to perform (Paradine v Jane) Thiswasunfairso a principledevelopedendingtheobligation to performwhereanunforeseeneventbeyondthecontrolofeitherpartymade it impossible to perform (Taylor v Caldwell) Self-inducedfrustrationwillnotrelieve a partyofobligations (Maritime National FishLtd v Ocean TrawlersLtd)
20. Discharge: breach Whethertheinjuredpartycanrepudiate or sue for damagesdepends on the nature ofthetermbreached (BungeCorporation v TradaxExport SA)
21. Remedies: damages Thebreach must bethefactualcauseofthedamage (London JointStock Bank v MacMillan) and must be a lossnaturallyarisingfromthebreach or one inthecontemplationofbothpartieswhenthecontractwasformed (Hadley v Baxendale)
22. Equitableremedies Specificperformance: enforcescompletionof a contractso is onlygrantedwhere it is possible for the court to oversee it (Ryan v Mutual Tontine Westminster ChambersAssociation)
23. Equitableremedies Injunctions: canbeused to protectlegitimateinterests Rescission: putsthepartiesback to theirpre-contractualposition (Clarke v Dickinson) Rectification: a contractualdocumentmaybechangedwhere it doesnotaccuratelyreflecttheactualagreement (CraddockBrosLtd v Hunt)