Difficult Contract Flashcards
What are restitutionary damages?
A monetary remedy that is measured according to the defendant’s gain rather than the claimant’s loss
What is Barton v Armstrong?
Physical duress doesn’t need to be the only reason the victim entered into the contract
What is the rule on restitutionary damages in Wrotham Park Estates?
For restitutionary damages to apply, three conditions must be met
- The breach must be deliberate for their own reward
- The claimant cannot establish financial loss for the breach
- There must be a legitimate interest in preventing the breach
What is the case for “cost of cure” damages?
Radford v De Froberville
Name the case in which economic duress was found when a deliverer refused to deliver goods?
Atlas v Kafco
What case deals with actual undue influence?
Daniel v Drew
What was the ruling in Watford Electronics v Sanderson?
That substantial business should be able to freely negotiate contracts on terms of their own
What are the two ingredients needed for presumed undue influence?
- A relationship of trust and confidence
2. A transaction that calls for an explanation
Banks can be tainted by undue influence
Barclays Bank v O’Brien
What are the three guidelines in RBS v Etridge?
- Banks will have “constructive notice of undue influence” in situations where the relationship between the debtor and surety is non commercial
- If banks are on “constructive notice” they will be put “on inquiry”
- To discharge the notice the banks must ensure that they meet with the surety alone and insist on legal advice
What is Spurling v Bradshaw?
Terms may be incorporated by a course of dealings
Hollier v Rambler Motos
Only using a service several times over five years did not amount to a course of dealings
McCutcheon v MacBrayne
Even if there is a course of dealings, terms will not be incorporated unless dealings are consistent
Chapelton v Barry
Incorporation by notice will only work if the notice is on a contractual document
What are the three ways in which terms can be incorporated?
- By signature
- By notice
- By course of dealings
What are the two ingredients needed for presumed undue influence?
- A relationship of trust and confidence
2. A transaction that calls for an explanation
What happened in Tate v Williamson?
An Oxford undergraduate was influence by his financial adviser to sell his estate for £7,000, half the real value
What happened in O’Sullivan v Management Agency?
A relationship of trust and confidence was established when a young songwriter was taken advantage of by his agent
What is the case of the Atlantic Baron?
In the Atlantic Baron the party seeking to allege duress had paid money voluntarily, thus affirming the contract.
What is the sequence for an undue influence question?
- Define undue influence
- Is actual undue influence?
- Is there presumed undue influence (changes evidential burden)
- What is the effect on the creditor if there is undue influence?
What is Farley v Skinner?
Enjoyment doesn’t have to be the sole purpose of a contract for it to be claimable.
CIBC Mortgages v Pitt. What is the ruling?
Banks should be put “on inquiry” in every case where the relationship between the debtor and surety is non commercial
Paradine v Jane
Contractual obligations are absolute, even in the event of frustrating events
Family agreements are presumed not to be binding
Balfour v Balfour
Commercial agreements are presumed to be made with the intention of legal relations
Edwards v Skyways
Chapelton v Barry. What is the ruling?
Documents with contract terms on must be “contractual by nature”
Chapell v Nestle
Consideration must be sufficient but need not be adequate
What type of damages are there in Anglia TV v Reed?
Reliance loss damages
