Contract Cases Flashcards
1
Q
Storer v Manchester City Council
A
Offers are firm and sufficient. Standard form agreement of sale with definite terms
2
Q
Partridge v Crittiden
A
Advertisements are invitations to treat. P put advertisement for sale of protected birds. Wasn’t an offer.
3
Q
Harvey v Facey
A
A supply of Information is neither an offer or invitation to treat. Telegraph asking what lowest acceptable price was just a statement.
4
Q
Harris v Nickerson
A
A statement of intention is not legally binding. Individual made a statement that he would sell furniture at auction, he did not have to put them for sale it was a statement of intention.
5
Q
Carlill v Carbolic Smoke Ball
A
Unilateral Contract, one party has obligations and performance is open to anyone. Smoke ball to clear the flu. They put $ in a bank if you used their product and it didn’t clear the flue. Carlill used the product and it didn’t help, she was entitled to $.
6
Q
Soulsbury v Soulsbury
A
Unilateral Contract. Ex-wife and husband agreed to forgo alimony and instead leave her $100k in his will. He performed unilaterally be not seeking alimony.
7
Q
Byrne v Vantien Hoven
A
Revocation of contract must be communicated to the Offeree. B sent letter to VTH but before it arrived VTH accepted by Fax. It was a binding contract.
8
Q
Errington v Errington
A
Once performance has begun on a unilateral contract, it cannot be revoked. Father bought son/wife house and as long as they paid mortgage they would inherit house.
9
Q
Hyde v Wrench
A
Rejection, if you reject an offer or counter offer the original offer is void.
10
Q
Felthouse v Bindley
A
An offer cannot be accepted by silence. Sale of horse “if you don’t message me i assume you accept” not valid.
11
Q
Household fire insurance v Grant
A
Postal acceptance rule: Acceptance takes place upon posting in mail. Letter for purchase of shares was valid.
12
Q
Allianz insurance v Aigaion
A
Emails can be acceptance. Series of emails with electronic signatures.
13
Q
Balfour v Balfour
A
Domestic/social relations presume to have no intention to contract. Husband left for Sri Lanka and promised money. Not legally binding.
14
Q
Parker v Clark
A
Family relations can be valid if there is clear intention to contract. P sold house to live with C on promise of inheritance of property.
15
Q
May and Butcher v R
A
Essential terms must be sufficiently clear. Sale of crown tents, with price to be determined later was not valid.
16
Q
Raffles v Wickelhaus (the Peerless)
A
No ambiguity. Sale of cotton to come on ship called “The Peerless” 2 ships called that arriving at different times. Term too vague.
17
Q
Combe v Combe
A
Consideration must have some value in law. Husband said he would make payments to wife, but void for lack of consideration.
18
Q
Offord v Davies
A
Consideration must move from the promisee, but not necessarily to the promisor
19
Q
Thomas v Thomas
A
Consideration need be Sufficient not Adequate. Wife given lease for life at $1 a year is valid.
20
Q
Chappell v Nestle
A
Consideration need be Sufficient not Adequate. N’s offer of 3 wrappers for a record were held to be of economic value and good consideration.
21
Q
Roscorla v Thomas
A
Past consideration is not good consideration. Horse sold. afterwards said to be sound and wast.
22
Q
Pao On (3 PART TEST)
A
When Past consideration can be good consideration.
1) Promisee performed act at Promisors request
2) Understanding that Promisee would be remunerated
3) Remuneration would have been legally enforceable had it been promised in advance.
23
Q
Glasbrook v Gamorgan council
A
Anythign above and beyond a legal duty is good consideration. Police officers provided extra protection during a strike.
24
Q
Stilk v Myrick
A
Performance of an existing duty owed cannot constitute good consideration. 2 ship deserters crew promised extra money.
25
Williams v Roffey
Performance of an existing duty can be good consideration, if 6 part test proven. W contracted to finish flats and couldn't so was promised extra $. Practical benefit to R was good consideration.
1) A entered into contract w/ B to provide goods/services
2) Before A completes B has reasonable doubt that A will finish.
3) B promises A additional $ for A's promise to perform contract on time.
4) B obtains a practical benefit
5) B's promise not given b/c of duress/fraud
6) Benefit to B is good consideration for B's promise so its binding.
26
Foakes v Beers
Part payment of a debt is not good consideration for a promise to discharge entire debt. B god judgement on f. He gave her money and promised to pay in instalments. She was entitled to charge interest.
27
High Trees Case
Promissory estoppel. can't go back on promise to accept less rent for a specified period and demand full payment.
1) A is contractually bound to B
2) A is not able to perform
3) B agrees to allow A to perform differently
4) In reliance on that Promise A does perform differently
5) B then sues for original performance
28
Heilbut Symons v Buckleton (4 factors)
Court uses objective test to determine if something is a term. 4 factors are: Timing, Importance, Reduced to writing, Special Knowledge. Shares for a rubber company that wasn't in fact a rubber company.
29
Oscar Chess v Williams
1 party has greater knowledge to know truth. W sold a car he thought was a 1948 model to a dealer. It wasn't. Dealer should have known better.
30
Harling v Eddy
Greater delay between statement and contract, less likely its a term. Cow is sound, 3 months later it dies. Fitness of cow was a term
31
Parol evidence Rule (8 exceptions)
agreement in writing then all outside evidence isn't allowed. Exceptions:
1) agreement not whole agreement
2) Implied terms
3) To show contract doesn't operate
4) Show evidence as to parties
5) Clarify the contract
6) Prove custom
7) To prove rectification
8) To show Collateral Contract
32
L'Estrange v Graucob
Incorporation by signature. Signed a contract with sweeping liability clause. She signed and she is bound.
33
Curtis v Chemical Cleaners
If signature obtained by Misrep. then not valid. Singed receipt for cleaning w/ exclusion clause by misrep.
34
Olley v Marlborough Court
Notice must be given before or at time of contracting. Stayed at hotel, exclusion clause upstairs contract signed downstairs, no good.
35
Chappelton v Barry
Term must be in a document intended to have contractual effect. Deck chairs, receipt had exclusion clause for injury. Not allowed.
36
Parker v South Eastern Railway
Reasonable steps must have been taken to bring terms to attention. Bag in cloakroom, ticket had clauses he knew were there but just didn't read.
37
Interfoto v Stiletto
Onerous terms must be brought to attention by Red Hand with Red Ink. Late fee's on transparencies were ridiculously high.
38
British Crane Hire v Ipswich
Incorporation through course of dealing/common practice. Both companies involved in crane hire. Common term places liability on hirer. was incorporated b/c standard.
39
Schüler v Wickman
Parties designate a term a condition unless it creates unreasonable results. 1500 total visits. Made 90%, held breach of condition, court made it a warranty.
40
Hong Kong Fir Shipping
Creation of Innominate terms. does breach of term deny P substantially the whole benefit of the contract?
ship was out of commission for 20weeks/24 months. Not enough to be breach of condition.
41
Hutton v Warren
Implied by custom/locality. farmer lease terminated in locality he's paid for work done.
42
The Moorcock
Terms Implied by Court. Necessity of Business Efficacy Test. ship in wharf and tide bottomed out and damaged ship. Implied term that wharf was safe.
43
AG of Belize v Belize telecom
officious bystandard test. Someone at your shoulder. Golden shares plus # of shares you appoint director. Implied term, you loose # of shares you loose right.
44
Liverpool City Council v Irwin
Terms implied in Law. Implied term that the Landlord and to take reasonable care of public space in building.
45
Investors Compensation Scheme.
Interpretation of Contractual terms. group of investors signed agreement that a compensation scheme would sue for them. Interpret term as if:
1) reasonable person w/ background knowledge
2) matrix of fact: anything parties understood.
3) words given their natural ad ordinary meaning= business common sense.
46
North Ocean Shipping v Hyundai
Economic Duress. Failed to include currency fluctuation clause. Asked for more $. they gave more. Claimed Duress 8 months Later. If it had been claimed earlier it would be Duress.
47
The Universal Sentinel
Economic Duress. ship blocked by union and company paid $. it was Duress at first instance.
1. Compulsion of the will - absence of choice
2. Illegitimacy of the pressure
48
Pao On (duress 4 test)
1) Did person claiming to be coerced Protest?
2) Did that person have any other available course of action?
3) Where they independently Advised?
4) After entering the Contract, did they take steps to avoid it?
49
Alec Lobb v Total Oil
Commercial pressure. He was advised not to enter into deal by Lawyers
50
Atlast v Kafco
Economic Duress. more $ or we will not deliver your goods.
51
The Alev
Duress of Goods. More $ or no delivery
52
B&S Contract v Victor Green
Economic Duress. We won't put up stands 1 week before concert unless more $.
53
Misrepresentation 4 requirements
1) Unambiguously false statement as to fact or law
2) Addressed to misled party
3) Intended to be acted upon
4) induced innocent party into entering contract
54
Bisset v Wilkinson
Misrep. Cannot be an opinion/belief/puff. Sale of land in Mew Zealand, gave figure for estimate of sheep to be held on land. Estimate off.
55
Esso v Marden
Negligent Misrep. gas station would sell 200K actually sold 60k. Esso was in better position to know figures.
56
Pankhania
Misrep as to Law. if Lawyers misrep you then its actionable
57
Commercial Banking of Sydney v R.H. Brown
Misrep must be addressed to misled party. Asked bank as to potential buyers credit rating. bank lied.
58
Smith v Eric Bush
Misrep must induce you to enter into contract. Mortgage company sent surveyor and then afterwards the chimney collapsed.
59
Horsefall v Thomas
If you have no knowledge of Msirep then can't rely on it. Bought gun without seeing it, didn't know of misrep.
60
Atwood v small
If you go through with contract knowing about misrep, you are bound. Bought Mine knowing figures were a lie. Couldn't go back on it.
61
Derry v Peek
Innocent Misrep. Company said horse tram would switch to steam tram on consent by city. D bought shares. Didn't go through. They honestly believed that they would get permission.
62
Fraudulent Misrep requirements
1) A statement that is false
2) Made Knowingly
3) Without belief in its truth or reckless to its validity
63
Newbiggins v Adams
Innocent Misrep's damages is by common law rescission
64
Hedley Byrne v Heller
Negligent Misrep; Duty of Care; Specialized Knowledge. Advertisement firm wanted to know if company could pay debts; asked bank. Bank lied. Bank was in a position of responsibility.
65
Statutory Misrep.
Misrepresentation Act 1967 s 2 (1)
1) Misrepresentation made to the other party in the contract and induced entering
2) Party Suffers Actual Loss as a result of misrep
3) Fiction of Fraud: If it would have been fraud had the representation been knowingly made; then we treat it as fraud
4) Reverse the Burden of Proof on Representor: They have to prove that they had reasonable grounds to believe in the facts truth then innocent
66
Spice Girls v Aprila
all 5 did advertisement. then one of them leaves. Actionable Misrep
67
Howard Marine v Ogden
Fiction of Fraud Misrep Act. Hire of 2 barges. Asked capacity. given wrong figures. Actionable Misrep.
68
East v Maurer
Fraudulent Misrep; Tort of Deceit. give back full compensation for losses suffered. M owned two salons and sold 1 to E saying he was retiring. He didn't and took all the clients.
69
Hedley Byrne 5 requirements of negligent Misrep
1) Person making statement must be aware it will be relied on
2) Reasonable for other party to at on statement
3) statement acted on to detriment
4) reasonable person would not have made statement
5) party making statement must have objectively foreseen loss
70
Royscott Trust v Rogerson
Misrep Act assessed of Tort of Deceit. finance company gave wrong info as to quantity of deposits. Damages under Misrep Act
71
Universal finance v Caldwell
Rescind contract; X gets back from y the value that Y obtained and X gives back benefit. C sold car to rogue and tried everything to rescind.
72
Long v Lloyd
Affirmation of contract. Sold Laurie that wasn't good. Asked for more $ for repairs and was given. He and affirmed.
73
Leaf v International galleries
Lapse of Time. Bought a painting by Constable. 5 years later is wasn't a constable. Not actionable.
74
Taylor v Caldwell
Frustration due to destruction of Subject Matter. Hired out a music hall. It burnt Down.
75
Jackson v Union Marine
Ship grounded 8/12 months= frustrated
76
Asfar v Blundell
Shipment of Dates was destroyed after they sank. Frustrated.
77
David Contractors v Faremah
No frustration if just substantially more difficult to perform. They were going to loose a lot of money on contracting job. Not frustrated just harder and at a loss.
78
National Carriers v Panalpina
rented out warehouse for 10 years. first 20 months it was inaccessible. Not frustrated, lots of time left.
79
Tamplin v Anglo-Mexican
Government intervention may frustrate. 5 year contract, government seized for 2 years, not frustrated time left.
80
British Petroleum v Hunt
Government intervention. BP put in lots of money to extract oil from H's Land. Libya takes land. BP were awarded 35 mil for their expenses.
81
Howell v Coupland
Failure of source of specific goods frustrates. Contract for sale of potatoes from specific field. Crop failed. Frustrated.
82
Krell v Henry
Coronation case. common purpose not performable. Rented a room to see coronation. No coronation, frustrated. See Herne Bay Case
83
Fibrosa v Fairbairn
Illegal to perform=frustrated. Polish company contracted with english company to buy machine. WWII broke out an illegal to perform. Got back their deposit, total failure of consideration, they got nothing in return.
84
Gamerco v Fair Warning Agency
Frustration. Guns and Roses concert, stadium not fit. They were awarded some money for advertisement loss.
1) incurred expenses before frustration in performance of contract and tis just to let them retain some or all $.
85
Evans v Merzario
Overriding Oral Warranty will circumvent exclusion clause. Promised cargo would be shipped below deck and was,t it was an overriding oral warranty.
86
Canada Steam Ship Lines v The Kind. (3 requirements)
Interpretation fo Exclusion Clauses. tried to remove liability for damages in shed due to negligence.
1) Term is clear and unambiguous and covers loss
2) If negligence not referred, is the clause wide enough to cover it based on ordinary meaning.
3) If not clear and there is another ground for interpretation, then go with that.
87
Hollier v Rambler Motors
Interpretation of Exclusion clauses regarding negligence. RM was repairing H's car which was damaged by fire due to negligence. Court interpreted that therm was not wide enough or clear enough to cover negligence.
88
Britvic soft drinks v Messer
Limitation clauses interpreted less restrictively. Limited damage to $500k, allowed b/c btwn 2 businesses
89
Karsales v Wallis
Cannot exclude liability for breach of Fundamental Term. Car was sold to drive, didn't drive, breach.
90
Photo productions v Securicor
Limitation for liability from negligence clause allowed b/c btwn 2 sophisticated parties.
91
Cremdere Properties v Nash.
If its reasonable to do so 2 sophisticated parties can exclude liability for Misrep.
92
Watford Electronics v Saunders
Test of Reasonableness in UCTA. S could limit liability as it was reasonable.
93
Mitchell v Finney Lock Seeds
Term excluding liability for seeds was not reasonable as the seller had more info.
94
Oceano group v Quintero
UTCCR; Fairness test; not fair to make purchaser go to Spain for court.
95
Arcos v Ronasen
Standard of performance; Strict liability sale of goods as contracted. Purchase of wood 1/2" thick and many were not that thickness. Breach of Condition.
96
Re Moore & Landauer
Strict liability. Sale of cans 3000 total in boxes of 30. Came in boxes of 24.
97
Planche v Colburn
Quantum Meruit. Contract to write book, did all research and was cancelled, he was to be paid for work done.
98
Universal Cargo Carriers v Citati
Repudiatory Conduct.No cargo was at place of loading past lay days, frustrated so allowed to terminate.
99
Eminence Property Developers
Objective test. has the contract breaker shown the innocent party that they clearly intend to breach the contract.
100
union Eagle v golden Achievement
Broken term is a condition, breach allows termination & Damages. Sale of Land at or before 5pm. $ was 10 mins late.
101
The Hansa Nord
Innominate term. Sale of citrus pulp for cattle feed. shipment not in perfect condition. They terminated and then bought it back at a cheaper price. Not allowed they just wanted deal, it was a warranty.
102
Hochster v de la Tour
Anticipatory breach. Hired courier and then told him he wouldn't need him. Courier allowed to sue before contract began.
103
Johnson v Agnew
there was continuing repudiatory action by A. J sought SP but house repossessed and sold before then. Breach of contract is prospective. Assess damages from Date of breach. Expectation interest awarded, original sale price - what it sold for.
104
Jarvis v Swan tours
Cannot usually claim for disappointment/discomfort. Exception being Holiday cases. Holidays were not as advertised and they were compensated for discomfort.
105
Expectation Interest
Put parities where they would expect to be at the end of the contract (the usual one)
106
Reliance Interest
Put parties back to the beginning of contract. Where they would have been had they not relied on the promise to their detriment. Better for parties who have done a bad deal.
107
Paula Lee v Zehil
Reasonable Valuation of Damages. 16k dresses to be bought, wanted it based all on cheapest. Court said based on reasonable valuation.
108
South Australia Asset Management v York Montague
Building negligently valued at 15 mil, only worth 5 mil They were awarded 10 mil in damages.
109
Ruxley v Forsyth
Loss of Amenity. Pool was built not to specifications, they wouldn't award full damages as it wouldn't have been used for that purpose. so just damages for loss of Amenity.
110
Tito v Waddell
Island strip mined. Court wouldn't award damages to replant all the trees as the company would not use it for that. it wasn't economically realistic.
111
Aerospace Publishing v Thames Water Utility.
Water damages their property. Not only were they able to recover damages for the loss of property, but they were also able to recover damages or loss of income due to the damages.
112
Victoria Laundry v Newman
Remoteness. Does damages arise naturally from breach. was it within contemplation of patties at outset. Delay of boiler resulted in loss of contract. this was not foreseeable or within contemplation.
113
The Heron II
Remoteness. Ship with sugar was 9 days late. It was reasonable to contemplate that sugar prices would fluctuate.
114
Parsons v Uttley Ingham
Pig feeder improperly installed and all the pigs dies. IT was within contemplation that if the feeder was installed improperly the food would go bad and kill the pigs.
115
Payzu v Saunders
Duty to Mitigate. contract for sale of goods, failed that. Given chance to pay cash. Terminated and sued. NO they had a duty to mitigate damages.
116
Warer Bro's v Nelson
Specific performance of Personal service contracts; can't enforce positive obligations; can enforce negative. Betty davis could not be forced to act for WB but could eb forced not to act for anyone else.
117
Wroth v Tyler
Damages awarded in Lieu of Specific performance
118
Dick Bentley v Harold Smith
DB told that the car's engine had been replaced by HS. Car had actually done 100k miles not 20k. It was a negligent Misrep.
119
Brogdan v Metropolitan Railway
Supply of coal. Dealing on informal basis so contract was written up. The D didn't sign the contract and put it in a drawer. When a dispute rose they claimed no valid contract.
The Contract existed because they acted like it did.
120
D&C v Rees
D did some work. R paid for some of the work. There was an outstanding balance. R offered 300 or nothing. D was in financial problems so accepted. Estoppel couldn't be used as R acted in bad faith and taken advantage.
121
Pinnels Case
The claimant was entitled to the full amount even if they agreed to accept less. Part payment of a debt is not valid consideration for a promise to forebear the balance unless at the promisor's request part payment is made either:
a) . before the due date or
b) . with a chattel or
c) . to a different destination
122
Klienwort Benson
Misrepresentation must be of Fact
123
Smith New Court Securities v Citibank
Damages from Fraudulent Misrep Under Tort of Deceit
1)payments for all damages, which flow directly from the transaction, they could get back all the money that’s been paid. 2) the goal is to give full compensation for all the losses that have been suffered.
124
Dakin v Lee
The defendants promised to build a house according to specification and failed to carry out exactly all the specifications, for example, concrete not four feet deep as specified, wrong joining of certain rolled steel joists and concrete not properly mixed. The Court of Appeal held that the builders were entitled to recover the contract price, less so much as ought to be allowed in respect of the items found to be defective.
125
White and Carter v Mcgregor
They were hired by one of the D's managers to put adverts on bins. The owner didn't want the adverts so said he wouldn't go through with it. They were held liable to pay for the whole contract
126
Malik v BCCI
Loss of Reputation can be recoverable with damages where there exists a duty of care
127
Hadley v Baxendale
The crankshaft broke in the Claimant’s mill. He engaged with the D to repair the crank shaft. IT was returned 7 days late
The damages available for breach of contract include:
1. Those which may fairly and reasonably be considered arising naturally from the breach of contract or
2. Such damages as may reasonably be supposed to have been in the contemplation of both the parties at the time the contract was made.
