Contract Law First Term Flashcards
What two cases explore the application of acceptance ‘subject to contract’?
RTS Flexible Systems Ltd v Molkere Alois Miller GmbH & Co KG (UK Production) and Air Studios (Lyndhurst) Ltd v Lombard North Central Plc
Who identified ‘invented consideration’?
Treitel
What two cases suggest that ‘undue’ means ‘unconscionable’ influence?
Allcard v Skinner and National Commercial Bank of Jamaica v Hew
Stevenson, Jacques & Co v McLean
Iron
What did Day Morris Associates say about acceptance by conduct?
Objective test of the reasonable person
In which case did Lord Mansfield tentatively express a view of consideration as redundant?
Pillans v Van Mierop
What policy reason did Atkin LJ give in Balfour v Balfour for refusing to recognise a contractual duty?
‘Agreements such as these are outside the realm of contracts altogether’
What did Danckwerts LJ say in Jones v Padavatton?
He found no difficulty in family members creating legally binding contracts in regard to family affairs but noted there is a ‘presumption against such an intention’
What is Rule 2 of privity?
Contract between B and X does not give B a right against A: A is not subject to the burden of the contract.
What is a case which supports the fact that claims in tort are exceptions to rule 1 of privity?
White v Jones
What was M Chen-Wishart’s ‘third way’ for undue influence in her article, ‘Undue Influence’?
It means both ‘too much’ and ‘unconscionable’ influence
What case gave that an offer is an ‘expression of willingness to contract on specified terms, made with the intention that it is to be binding’?
Grecoair Inc v Tilling
What is Rule 1 of privity?
Contract between A and X does not give B a right against A. B cannot take the benefit of it.
Which report of the Law Commission led to the C(RoTP)A?
Report No.121
What four factors for economic duress did Scarman lay down in Pao On v Lau Yiu Long?
Did C protest? Was there an alternative? Was C given independent and impartial advice? Did C try to avoid the contract afterwards?
Re Craig (deceased)
Housekeeper
What is another requirement for acceptance of an offer other than that given in Day Morris Associates?
Mirror image rule
What does Stevenson, Jacques & Co v McLean give for requests for further information?
Iron - vague correspondence without binding terms = a request for further information
What does Jorden v Money note about the problem with promises in estoppel?
Estoppel was not valid as it was based on a promise, not a representation of fact
What case in particular supports rule 2 of privity?
Hill v Tupper
What was the judgment in White v Jones?
The solicitor was liable as he should have known the will would affect the future of the intended beneficiaries
What did Viscount Haldane LC say about privity in Dunlop Pneumatic?
‘Our law knows nothing of a jus quaesitum tertio arising by way of contract’
Why did Lord Millett and Goff argue for broad ground in Alfred McAlpine Construction Ltd v Panatown Ltd?
X should have a remedy for A’s breach regardless
What two issues does McKendrick raise in Barton v Armstrong?
‘A’ reason, not ‘the’ reason and they rendered the deed ‘void’ instead of voidable
What promisor right does Alfred McAlpine Construction Ltd v Panatown Ltd support in privity cases?
Damages
What did the courts note in both Etridge No.2 and Barclays Bank plc v O’Brien?
The safeguards do not guarantee freedom from undue influence, but a balance needed to be struck somewhere
In what case did Lindley J say that the transaction must not be based on ‘ordinary motives on which ordinary men act’?
Allcard v Skinner
What does Coulls v Bagot’s Executor & Trustee Co Ltd (High Court Australia) note about consideration moving?
Joint promises are still valid for consideration moving so the wife had to be paid as a party to the document
Ratio in Entores Ltd v Miles Far East Corporation?
Acceptance must be communicated to the offeror
How does Cobbe v Yeoman’s Row Management Ltd outline principle 1 of proprietary estoppel?
B’s proprietary estoppel claim failed as A had not promise to act in a certain way
In what case did Dyson J say that ‘illegitimate pressure must be distinguished from the rough and tumble of the pressures of normal commercial bargaining’?
DSND Subsea Ltd v Petroleum Geo-Services AS
Who said that one should ‘look at the correspondence as a whole’ to see if they came to an agreement?
Denning
What difficulty did Professor Birks note with the defendant-oriented conception of undue influence?
It insists on wrongdoing which shuts out relief where there is none (Allard v Skinner; Hammond v Osborn)
Why is there an element of subjectivism required for deciding on whether there is an agreement?
If both parties did not want a contract, it would be perverse to enforce one
What two cases show that acceptance must be in response to the offer?
Williams v Carwardine and R v Clarke (Australian case)
What does Lush J say can accrue to make valuable consideration?
A right, interest, profit or benefit
In what case did Lord Scott say that ‘an estoppel bars the object of it from asserting some facts/fact, or, sometimes, something that is a mixture of fact and law’?
Cobbe v Yeoman’s Row Management Ltd
What two cases suggest ‘undue’ means ‘too much’ influence?
Allcard v Skinner and Niersmans v Pesticcia
Rust v Abbey Life Assurance Co Ltd
Insurance policy
Ratio in Holwell Securities Ltd v Hughes?
‘Notice in writing’ specifically excluded the postal rule by requiring him to actually receive it
Ratio in Scriven Brothers & Co v Hindley & Co?
Mistake cause by/contributed to buy the plaintiff’s negligence, so found for the claimant to recover the cost
What case secured the postal rule?
Dunlop v Higgens
Why does Etridge No.2 make it harder for wins to establish undue influence?
No presumption and guarantee of a wife for husband can be accounted for on the nature of the relationship
In what case did Colman J reluctantly apply Roffey Bros?
South Caribbean Trading Ltd v Trafigura Beheer BV
What are the two ‘types’ of undue influence?
Presumed and actual
When banks have constructive notice of undue influence, what is the claimant allowed to do if they failed to put themselves on inquiry?
Set the transaction aside
Ratio in Rust v Abbey Life Assurance Co Ltd?
Conduct can give acceptance, e.g. failure to reject
Ratio in Lucy v Walwyn?
Executory contract which exchange a promise for a promise gives consideration
In what case did Gaudron J give that it is ‘a matter of logic’ to restrict cases of estoppel to matters of existing fact?
Walton Stores (Interstate) Ltd v Maher
What two cases show examples of a threatened breach of contract?
B & S Contracts and Design Ltd v Victor Green Publications Ltd and DSDN Subsea Ltd v Petroleum Geo-Services ASA
What is a letter of credit for?
To ensure B providing the services is paid by A
What dd Pollock CB say about privity in Hill v Tupper?
Debates whether ‘a new species of property can be created, or whether the alleged right merely exists in contract’ in regard to privity
What did Lord Cranworth LC say in Ramden v Dyson?
About building on someone’s land and owner knowing they own that land but not correcting him, and a court of equity blocking the owner from asserting title to the land consequently
What did Harvela Investments Ltd v Royal Trust Co of Canada conclude about collateral contracts of invitation to tender?
They imply no referential bids, typing the plaintiff into a unilateral contract
In what case did Denning try to abolish privity as ‘only a rule of procedure’?
Beswick v Beswick
What additional category of undue influence does Professor Birks think there should be to avoid the focus of defendant-oriented conceptions of undue influence requiring wrongdoing?
‘Innocent undue influence’
What was the ratio in Gibson v Manchester City Council?
Formal application specified ‘might be willing’ to sell the house so just an invitation to treat
Butler Machine Tool Co Ltd v Ex-Cell-O Corporation (England) Ltd
Battle of Forms
In what article did Birks and Chin pull actual and undue influence apart?
‘On the Nature of Undue Influence’
What three different forms of estoppel did Coke identify?
Per rem judicatem, by matter in writing and by matter in pais
What is the statutory support for bills of exchange as an exception to requirement of consideration?
Bills of Exchange Act 1882, s.27(1)(b)
Allcard v Skinner
Nun
In National Commercial Bank of Jamaica v Hew, what did Lord Millett say to suggest undue means unconscionable influence?
‘Equity does not intervene unless… influence has been abused’
What was the ratio in Denton v Great Northern Railway Co?
Creation of a timetable is the making of an offer
Thornton v Shoe Lane Parking Ltd
Ticket machine
According to Mance J in Huyton SA v Peter Cremer GmbH & Co, what is the causation test for economic duress?
It must have ‘actually caused the making of the agreement’ as it would have been made differently/not at all without pressure
How did Birks and Chin describe actual undue influence in ‘On the Nature of Undue Influence’?
Equivalent of duress in equity
In what case did HoL reject the attempt of Denning to abolish privity?
Beswick v Beswick
What three broad things are need to prove presumed undue influence on presumptions and evidence?
A relationship of influence, the transaction calling for an explanation and any countervailing evidence
‘Office hours receipt rule’ applies to emails
Thomas v BPE Solicitors
Ratio in Household Fire and Carriage Accident Insurance Co Ltd v Grant?
The postal rule is still valid usually even if the letter never arrives
Name the four substances of a contract
Offer, acceptance, intention to create legal relations and consideration
Ratio in Errington v Errington?
Offeror cannot withdraw a promise of payment once another party has started performance of the terms
What two things, according to Etridge No.2, are required for a factual inference of undue influence?
Necessary to prove nature of relationship AND not explicable by ordinary motives
Fisher v Bell
Flick knives
Partridge v Crittenden
Live birds
What case gives the ‘coercion of the will theory’?
Pao On v Lau Yiu Long
What did Reid imply about the rule of privity in Beswick v Beswick?
He hoped P would legislate, but if not the HoL may take it upon themselves
What authority first established postal rule?
Adams v Lindsell
What does C Fried say to support one criticism of consideration?
He argues that consideration frustrates ‘the projects of promisees after the fact and the potential projects of promisors’
In what case did Lord Diplock say that commercial pressure exists wherever one party ‘is in a strong bargaining position than the other party’?
The Universe Sentinel
What case applied Carlill to show unilateral contract?
Bowerman v Association of British Travel Agents
What is cause of action estoppel?
When someone is estopped from denying a particular state of affairs decided in court
What was the ratio in Central London Property Trust Ltd v High Trees House Ltd?
Right is suspend for full rent until conditions changed completely
What was the ratio in Wilkie v London Passenger Transport Board?
There was an implied offer by the bus driving around and acceptance upon boarding, regardless of payment
Denny v Hancock
Magnificent trees
Ward v Byham
Baby happy
Who noted that a threatened breach of contract is illegitimate if done on bad faith (to exploit weakness) but not if it is just a ‘reaction to… frustration’ nor if it merely a ‘bad bargain’?
A Burrows in ‘The Law of Restitution’
In what case did Christopher Clarke J give a ‘but for’ causation test for economic duress?
Kolmar Group AG v Taxpo Enterprises Pty Ltd
Chwee Kin Keong v Digilandmail.com Pte Ltd
Commercial laser printers
Dimskal Shipping Co SA v ITWF (The Evia Luck)
Shipowners
Ratio in R v Clarke?
One needs to rely upon the offer rather than just know about it in order to accept
What did D Ibbetson say about privity?
It ‘ has been a feature of English law since at least the thirteenth century’
Ratio in Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd apart from privity?
Selfridge made a gratuitous promise to fix a price as Dunlop gave no consideration to them
Combe v Combe
Annual maintenance
Ratio in Denny v Hancock?
Role of fault on seller so buyer allowed to escape contract
Ratio in Mathieson Gee (Ayshire) Ltd v Quigley?
No consensus to give contractual relationship as Mathieson offered equipment and Quigley accepted removal
In what case was it highlighted that the ‘rough and tumble of the pressures of normal commercial contracts’ does not amount to economic duress?
DSND Subsea Ltd v Petroleum Geo-Services ASA
Who said ‘that a third party could not enforce rights arising under a contract has been a feature of English law since at least the thirteenth century’?
D Ibbetson
Williams v Carwardine
Murderers
What does Lush J say can be suffered/undertaken to make valuable consideration?
Forbearance, detriment, loss or responsibility
Who highlighted the need for an absence of ‘real choice’ or ‘realistic alternative’ for an economic duress claim?
Christopher Clarke J in Kolmar Group AG v Taxpo Enterprises Pty Ltd
Midland Bank v Shepherd
Excludes husband and wife from Class 2(A)
What is agreement formulated of?
Offer and acceptance
R v Clarke
Two policemen
What is economic duress?
A illegitimately pressurises B to enter into a contract by threatening them in a way that will damage their economic interest
What is the effect on solicitors by the judgment in Etridge No.2?
Banks on inquiry to ensure wife has received advice, so solicitors have more obligations
What section of the C(RoTP)A governs for variation of a contract when a third party is involved?
Section 2
At what paragraph did UCB reject the principle in Aboody that if regardless of undue influence they would have entered the contract anyway, there is no defence of duress?
91
What type of duress does Dimskal Shipping Co SA v ITWF (The Evia Luck) depict?
Economic duress
When is there an exception to an advert being solely an invitation to treat?
If there is extreme enticement/clearly showing money (Carlill)
According to Christopher Clarke J in Kolmar Group AG v Taxpo Enterprises Pty Ltd, what is the causation test for economic duress?
‘But for’ cause
Who noted that ‘we are tending to regard any act done on the faith of a promise as sufficient consideration to support it’?
Denning in Modern Law Review
Who gave a list of relationships which carry irrebutable presumptions?
Lord Nicholls in Etridge No.2
Who argued that irrebutable presumptions should not be given to particular kinds of relationships?
Sir Kim Lewison in ‘Under the Influence’
Mathieson Gee (Ayshire) Ltd v Quigley
Pond silt
What type of duress does Astley v Reynolds depict?
Duress to goods
What is a land law exception to privity and relevant case?
Covenants (restrictive) - Tulk v Moxhay
Judgment in Musumeci v Winadell Pty Ltd?
There was a practical benefit for the leasors in keeping the shop open and having a full shopping centre, which gave consideration for varying the lease
What case is an example of duress to goods?
Astley v Reynolds
What is duress to goods?
Refusing to give back goods until owner enters a contract
What do the two cases of Re Craig and Re Brocklehurst support?
The advantages of the a ‘but for’ principle arising out of Aboody for UI
What did Devlin J say in Parker v Clark about judgment?
Ridiculous to believe that the younger Clarks could refuse to give the house to the Parkers
Ratio in Combe v Combe?
Promissory estoppel is only a defence, and Denning stated that as her forbearance was not at the request of her husband, it was not good consideration
What test of causation does Lord Goff give for economic duress in The Evia Luck?
‘A significant cause’
Brinkibon v Stahag-Stah on instantaneous means of communication (not telexes)
Outside office hours, so receipt only upon reopening of office
What do all three types of duress have in common?
The same, single analytical structure requiring you to show both illegitimate pressure and causation
What is ‘invented consideration’?
When B’s action is not the ‘price for A’s promise’ but is nonetheless considered consideration
Ratio in Balfour v Balfour?
Not reasonable to believe that he intended to be bound ‘come what may’
White v Jones
Solicitor
Shadwell v Shadwell
Uncle promise
Why is The New York Star not technically an example of carriage of goods by sea being an exception to privity?
They found a direct contract
Hackett v CPS
Deaf, reliant on criminal son
Who gave three requirements for past consideration to be good and in what case?
Lord Scarman in Pao On v Lau Yiu Long
Henkel v Paper
Rifles
Who noted that a restriction of estoppel to matter of existing fact is ‘a matter of logic’?
Gaudron J
What is Barclays Bank plc v O’Brien technically not outlining the role of third parties in undue influence?
Because it was a misrepresentation case
What two cases support principle 1 of promissory estoppel?
Hughes v Metropolitan Railway Co and Hickman v Haynes
What section of the BoE Ac 1882 notes that valuable consideration for a bill of exchange can be constituted by a pre-existing debt/liability
S.27(1)(b)
Re London & Northern Bank
Letter must be properly stamped and addressed
Who said that ‘illegitimate pressure must be distinguished from the rough and tumble of the pressures of normal commercial bargaining’?
Dyson J in DSND Subsea Ltd v Petroleum Geo-Services AS
What was the ratio in Grecoair Inc v Tilling?
An offer is an ‘expression of willingness to contract on specified terms, made with the intention that it is to be binding’
What relationship was found to be one of influence in Aboody?
Wife and husband
Merritt v Merritt
Intention to create legal relations different for separated couples
What does Hammond v Osborn suggest about proof of fault for undue influence?
You do not have to prove someone behaved badly for undue influence
Re Craig (deceased)
Old, dependent on housekeeper
Hammond v Osborn
Neighbour
What three cases would be decided differently now due to the C(RoTP)A?
Jackson; Beswick; Tweddle
Pao On v Lau Yiu Long
Shares
In Allcard v Skinner, what did Lindley J say to suggest undue influence means unconscionable influence?
It has been ‘developed by the necessity of grappling with insidious forms of spiritual tyranny’
Who argues against the majority for the doctrine of undue influence being about impaired consent, not about wicked exploitation?
P Birks and CN Yin in ‘On the Nature of Undue Influence’
According to Carlill, how does one communicate acceptance in unilateral contracts?
Not needed - waives requirement that acceptance be communicated
In what article did R Bigwood support M Chen-Wishart’s ‘third way’ for undue influence?
‘Contracts by Unfair Advantage’
What does Bank of Credit and Commerce International SA v Aboody suggest about causation in undue influence?
If A suffers UI but would have entered the contract regardless, UI is not a defence
When was economic duress first recognised, by who and in what case?
Last 1970s by Kerr J in The Siboean and The Sibotre
What two cases show courts requiring a transaction to call for an explanation to prove undue influence?
Etridge No.2 and Allcard v Skinner
Who identified the oxymoron of promissory estoppel?
Lord Hailsham
In order to establish undue influence, according to McKendrick, what must one focus on?
The state of mind of the claimant and the conduct of the defendant
What two broad categories show cases when it is not reasonable for B to believe A intends to be bound?
Express qualifications and by the nature of A’s promise
Wilkie v London Passenger Transport Board
Bus injury
In what article do Birks and Yin argue for undue influence being about impaired consent and not wicked exploitation?
‘On the Nature of Undue Influence’
What was the ratio in Chwee Kin Keong v Digilandmail.com Pte Ltd?
Unilateral mistake, and the individual should have reasonably known, so not allowed to take advantage
Ratio in Smith v Cooper?
Reasonable explanation does not rebut the presumption
Ratio in Astley v Reynolds?
Refusal to return goods by forcing the owner to enter into a contact invalidates any consent given and is duress to goods
What two cases note that promises in a deed are binding?
Macedo v Stroud and Pitt v Holt
RTS Flexible Systems Ltd v Molkere Alois Miller GmbH & Co KG (UK Production)
Packaging machine
In Allcard v Skinner, did the courts distinguish between presumed and actual undue influence?
Yes
Who expressed regret and in what case that P had still not done anything about the ‘unjust rule’ of privity, 12 years after Reid in Beswick v Beswick?
Scarman in Woodar Investment Development Ltd v Wimpey Construction Ltd
What case did Denning challenge in Ward v Byham?
Glasbrook Brother Ltd v Glamorgan CC
Ratio in Nippon Yusen Kalsha v Pacifica Navegacion SA (The Ion)?
Promissory estoppel estops D from enforcing the limitation as a defence
Shanklin Pier v Detel Products Ltd
Painting pier
What base did the HoL prefer in Alfred McAlpine Construction Ltd v Panatown Ltd?
Narrow ground, but it was inapplicable to the facts
What two judges and two cases both consider the effect of a defendant bona fide believing their pressure is legitimate?
Mance J in Huyton SA v Peter Cremer GmbH & Xo and Steyn LJ in CTN Cash and Carry Ltd v Gallaher
What are executory contracts?
Promise exchanged for a promise
In Niermans v Pesticcia, what did Mummery LJ say to suggest undue influence means too much influence?
‘As a matter of public policy’ presumed influence arising from a relationship should not be to the victim’s disadvantage
What did Lord Nicholls say in Etridge No.2 about proving a relationship of influence?
The claimant need only ‘prove the existence of the type of relationship’ to which the ‘law has adopted a seriously protective attitude’
Errington v Errington
Daughter mortgaged house
What Lord and in what case did they note that threatened acts need not be unlawful?
Lord Scarman in The Universe Sentinel
Ratio in Air Studios (Lyndhurst) Ltd v Lombard North Central Plc?
‘Subject to contract’ must be in very correspondence and you must not behave as though you believe yourself to be bound
Ratio in Chappell & Co Ltd v Nestle Co Ltd?
Consideration need not be adequate, just sufficient
Barry v Davies
Engine analysers
Who made a radical statement that contracts are not based on promises at all; they are just trying to find a reason for D to be liable, and the best way to do this is by showing A relied on D, or there was an element of benefit rendered/obtained
Atiyah
What did Lord Cairns say in Hughes v Metropolitan Railway Co?
‘The person who otherwise might have enforced this rights will not b allowed to enforce them where it would be inequitable having regard to the dealings’
What does Niersmans v Pesticcia suggest about proof of fault for undue influence?
Proof of fault not required for undue influence
Scriven Brothers & Co v Hindley & Co
Russian hemp and tow
Ratio in Stevenson, Jacques & Co v McLean?
Inquiry, not a counter-offer
Why does the case of Alfred McAlpine Construction Ltd v Panatown Ltd show the issue of privity and promisor’s rights is still unclear?
3:2 split between the judges
Give three cases which show relationships of influence being proved by showing trust and confidence?
Aboody, Cheese v Thomas and Credit Lyonnais v Burch
What two cases support principle 2 of promissory estoppel?
Central London Property Trust Ltd v High Trees House Ltd and Collier v P & MJ Wright (Holdings) Ltd
Holwell Securities Ltd v Hughes
Option of land
Alfred McAlpine Construction Ltd v Panatown Ltd
Duty of care deed
Ratio in Byrne & Co v Van Tiehoven & Co?
Revocation must be communicated to offeree prior to acceptance
What did Denning say in obiter in High Trees?
A promise to accept a smaller sum in discharge of a larger sum, if acted upon, is binding notwithstanding the absence of consideration
What two cases give that consideration must move from the promisee?
Dunlop Pneumatic and Coulls v Bagot’s Executor & Trustee Co Ltd (High Court Australia)
Musumeci v Winadell Pty Ltd
Shopping centre
Nippon Yusen Kalsha v Pacifica Navegacion SA (The Ion)
Limitation period