Contractual Terms Case Cards

Question 1

Heilbut Symons v Buckleton

Answer 1

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.

Question 2

Oscar Chess v Williams

Answer 2

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.

Question 3

Dick Bentley v Harold Smith

Answer 3

DB was sold a bentley by HS. HS said that the engine had been replaced and had only done 20k. It had turned out that the replaced engine had actually done 100k. Since HS was in a better position to have knowledge of the facts it was Negligence.

Question 4

Harling v Eddy

Answer 4

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

Question 5

L’Estrange v Graucob

Answer 5

Incorporation by signature. Signed a contract with sweeping liability clause. She signed and she is bound.

Question 6

Curtis v Chemical Cleaners

Answer 6

If signature obtained by Misrep. then not valid. Singed receipt for cleaning w/ exclusion clause by misrep.

Question 7

Olley v Marlborough Court

Answer 7

Notice must be given before or at time of contracting. Stayed at hotel, exclusion clause upstairs contract signed downstairs, no good.

Question 8

Chappelton v Barry

Answer 8

Term must be in a document intended to have contractual effect. Deck chairs, receipt had exclusion clause for injury. Not allowed.

Question 9

Parker v South Eastern Railway

Answer 9

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.

Question 10

Interfoto v Stiletto

Answer 10

Onerous terms must be brought to attention by Red Hand with Red Ink. Late fee’s on transparencies were ridiculously high.

Question 11

British Crane Hire v Ipswich

Answer 11

Incorporation through course of dealing/common practice. Both companies involved in crane hire. Common term places liability on hirer. was incorporated b/c standard.

Question 12

Schüler v Wickman

Answer 12

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.

Question 13

Hong Kong Fir Shipping

Answer 13

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.

Question 14

Hutton v Warren

Answer 14

Implied by custom/locality. farmer lease terminated in locality he’s paid for work done.

Question 15

The Moorcock

Answer 15

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.

Question 16

AG of Belize v Belize Telecom

Answer 16

officious bystandard test. Someone at your shoulder. Golden shares plus # of shares you appoint director. Implied term, you loose # of shares you loose right.

Question 17

Mediterranean salvage v Seamar Trading

Answer 17

the owners of the vessel argued that the charterparty was subject to an implied term that the charterers must nominate a safe berth at the agreed load port.
-it was not necessary to imply the proposed term in order to make the contract work

Question 18

Liverpool City Council v Irwin

Answer 18

Terms implied in Law. Implied term that the Landlord and to take reasonable care of public space in building.

Question 19

Investors Compensation Scheme v West

Answer 19

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.