Contract - Terms Cases Flashcards
Hutton v Warren
Implied terms
Farmer entitled to seed despite silence of lease
Terms will be implied by courts into a contract based on local custom or trade usage.
Spurling J Ltd v Bradshaw
Implied Terms + Exemption clauses
Terms will be implied by courts based on previous course of dealings between the parties; exemption clauses may be validly incorporated by course of dealings.
The Moorcock
Implied terms - business efficacy and “officious bystander test”
Ship moored at wharf - not deep enough - damaged
Terms will be implied by courts to reflect the presumed intention of the parties; this includes terms that are necessary to give business efficacy to the contract.
Poussard v Spiers
Types of terms - condition
Opera singer singing in first week of show - condition
Condition goes to the root of a contract. Remedies include right of election, right to terminate, damages.
Bettini v Gye
Types of Terms - warranty
Singer missing a few rehearsals - warranty
Warranties are less important and do not go to the root of the contract. Remedies = damages only.
Hong Kong Fir v Kawasaki
Types of terms - innomimate
neither condition nor warranty as it depends on the facts, question remains: “does the breach deprive the innocent party of substantially the whole benefit of the contract?”
Bannerman v White
Term or representation?
Hops + Sulphur
Statements intended to be binding are terms, intention can be based on:
Importance placed by the other party.
Routledge v McKay
Term or representation?
2nd hand bike - 142/30 model
Statements intended to be binding are terms, intention can be based on:
Timing - statement must be made at the time of contracting - large gap can lead to representation.
Schwael v Reade
Term or representation?
Statements intended to be binding are terms, intention can be based on:
Encouraging the other to not carry out checks: taking responsibility for soundness of item.
Oscar Chess v Williams
Term or representation?
2nd hand car
Statements intended to be binding are terms, intention can be based on:
Specialist knowledge: in this case buyer had SK, seller did not - representation`
Dick Bentley v Harold Smith
Term or representation?
2nd hand car
Statements intended to be binding are terms, intention can be based on:
Specialist knowledge: in this case Seller had SK, buyer did not - term
Jacobs v Batavia
Extrinsic evidence cannot (usually) vary express written contract.
J Evans & Sons v Andrea Merzario
Extrinsic evidence cannot vary express written contract unless: Contracts are not wholly written.
Interfoto
Extrinsic evidence cannot vary express written contract unless: Terms are very onerous.
McCutcheon v MacBrayne
Implied terms - implied in fact
Scottish sunk ferry case - forgot to sign risk note - often failed to sign - inconsistent - not implied in fact
Prior practice history can imply (or not imply) in fact.
British Crane Hire v Ipswich
Implied terms - implied in fact
custom to insure
Custom practices can imply in fact
Terms implied by law
SGA 1979 s.8,12,13,14
SGSA 1982 s.3,4,13,14,15
Harlington & Leinster Enterprises
Buyer must reasonably rely on description (SGA 1979 s.13)
Beale v Taylor
SGA s.13 (goods must match description) may still apply where the goods have been inspected.
Priest v Last
SGA s.14 - Implied by law that goods are of satisfactory quality.
Balmoral Group v Borealis
SGA s.14 - Implied by law that the goods are reasonably fit for the purpose that the buyer expressly or by implication makes known to the seller.
Ecay v Godfrey
Term or representation?
Seller of boat asked buyer to survey
Asking other to verify statement makes it more likely to be a representation.
Spice Girls v Aprilla World Service BV
Term or representation? - conduct
TV commercial then split - held that this amounted to a representation that C did not know, or have reasonable grounds to know that members intended to leave.
False statement can be made by words or conduct
