Contract - Terms Cases

Question 1

Hutton v Warren

Answer 1

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.

Question 2

Spurling J Ltd v Bradshaw

Answer 2

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.

Question 3

The Moorcock

Answer 3

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.

Question 4

Poussard v Spiers

Answer 4

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.

Question 5

Bettini v Gye

Answer 5

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.

Question 6

Hong Kong Fir v Kawasaki

Answer 6

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?”

Question 7

Bannerman v White

Answer 7

Term or representation?

Hops + Sulphur

Statements intended to be binding are terms, intention can be based on:

Importance placed by the other party.

Question 8

Routledge v McKay

Answer 8

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.

Question 9

Schwael v Reade

Answer 9

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.

Question 10

Oscar Chess v Williams

Answer 10

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`

Question 11

Dick Bentley v Harold Smith

Answer 11

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

Question 12

Jacobs v Batavia

Answer 12

Extrinsic evidence cannot (usually) vary express written contract.

Question 13

J Evans & Sons v Andrea Merzario

Answer 13

Extrinsic evidence cannot vary express written contract unless: Contracts are not wholly written.

Question 14

Interfoto

Answer 14

Extrinsic evidence cannot vary express written contract unless: Terms are very onerous.

Question 15

McCutcheon v MacBrayne

Answer 15

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.

Question 16

British Crane Hire v Ipswich

Answer 16

Implied terms - implied in fact

custom to insure

Custom practices can imply in fact

Question 17

Terms implied by law

Answer 17

SGA 1979 s.8,12,13,14

SGSA 1982 s.3,4,13,14,15

Question 18

Harlington & Leinster Enterprises

Answer 18

Buyer must reasonably rely on description (SGA 1979 s.13)

Question 19

Beale v Taylor

Answer 19

SGA s.13 (goods must match description) may still apply where the goods have been inspected.

Question 20

Priest v Last

Answer 20

SGA s.14 - Implied by law that goods are of satisfactory quality.

Question 21

Balmoral Group v Borealis

Answer 21

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.

Question 22

Ecay v Godfrey

Answer 22

Term or representation?

Seller of boat asked buyer to survey

Asking other to verify statement makes it more likely to be a representation.

Question 23

Spice Girls v Aprilla World Service BV

Answer 23

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