Difficult Contract

Question 1

What are restitutionary damages?

Answer 1

A monetary remedy that is measured according to the defendant’s gain rather than the claimant’s loss

Question 2

What is Barton v Armstrong?

Answer 2

Physical duress doesn’t need to be the only reason the victim entered into the contract

Question 3

What is the rule on restitutionary damages in Wrotham Park Estates?

Answer 3

For restitutionary damages to apply, three conditions must be met

1. The breach must be deliberate for their own reward
2. The claimant cannot establish financial loss for the breach
3. There must be a legitimate interest in preventing the breach

Question 4

What is the case for “cost of cure” damages?

Answer 4

Radford v De Froberville

Question 5

Name the case in which economic duress was found when a deliverer refused to deliver goods?

Answer 5

Atlas v Kafco

Question 6

What case deals with actual undue influence?

Answer 6

Daniel v Drew

Question 7

What was the ruling in Watford Electronics v Sanderson?

Answer 7

That substantial business should be able to freely negotiate contracts on terms of their own

Question 8

What are the two ingredients needed for presumed undue influence?

Answer 8

1. A relationship of trust and confidence

2. A transaction that calls for an explanation

Question 9

Banks can be tainted by undue influence

Answer 9

Barclays Bank v O’Brien

Question 10

What are the three guidelines in RBS v Etridge?

Answer 10

1. Banks will have “constructive notice of undue influence” in situations where the relationship between the debtor and surety is non commercial
2. If banks are on “constructive notice” they will be put “on inquiry”
3. To discharge the notice the banks must ensure that they meet with the surety alone and insist on legal advice

Question 11

What is Spurling v Bradshaw?

Answer 11

Terms may be incorporated by a course of dealings

Question 12

Hollier v Rambler Motos

Answer 12

Only using a service several times over five years did not amount to a course of dealings

Question 13

McCutcheon v MacBrayne

Answer 13

Even if there is a course of dealings, terms will not be incorporated unless dealings are consistent

Question 14

Chapelton v Barry

Answer 14

Incorporation by notice will only work if the notice is on a contractual document

Question 15

What are the three ways in which terms can be incorporated?

Answer 15

1. By signature
2. By notice
3. By course of dealings

Question 16

What are the two ingredients needed for presumed undue influence?

Answer 16

1. A relationship of trust and confidence

2. A transaction that calls for an explanation

Question 17

What happened in Tate v Williamson?

Answer 17

An Oxford undergraduate was influence by his financial adviser to sell his estate for £7,000, half the real value

Question 18

What happened in O’Sullivan v Management Agency?

Answer 18

A relationship of trust and confidence was established when a young songwriter was taken advantage of by his agent

Question 19

What is the case of the Atlantic Baron?

Answer 19

In the Atlantic Baron the party seeking to allege duress had paid money voluntarily, thus affirming the contract.

Question 20

What is the sequence for an undue influence question?

Answer 20

1. Define undue influence
2. Is actual undue influence?
3. Is there presumed undue influence (changes evidential burden)
4. What is the effect on the creditor if there is undue influence?

Question 21

What is Farley v Skinner?

Answer 21

Enjoyment doesn’t have to be the sole purpose of a contract for it to be claimable.

Question 22

CIBC Mortgages v Pitt. What is the ruling?

Answer 22

Banks should be put “on inquiry” in every case where the relationship between the debtor and surety is non commercial

Question 23

Paradine v Jane

Answer 23

Contractual obligations are absolute, even in the event of frustrating events

Question 24

Family agreements are presumed not to be binding

Answer 24

Balfour v Balfour

Question 25

Commercial agreements are presumed to be made with the intention of legal relations

Answer 25

Edwards v Skyways

Question 26

Chapelton v Barry. What is the ruling?

Answer 26

Documents with contract terms on must be “contractual by nature”

Question 27

Chapell v Nestle

Answer 27

Consideration must be sufficient but need not be adequate

Question 28

What type of damages are there in Anglia TV v Reed?

Answer 28

Reliance loss damages