Express Terms

Question 1

Oscar v Chess

Answer 1

To determine whether a seller’s words constitute a warranty, an objective test is taken of their words to see if they intended to be legally bound

Consider statement of belief v clear warranty, expert opinion

Question 2

JJ savage and sons v Blakeny

Answer 2

Statements made as an opinion can’t be relied upon as a promissory statement, as the buyer is still acting on their own judgement of the opinion

Question 3

Parole evidence rule

Answer 3

where a contract is fully integrated, evidence beyond the contract cannot be relied upon to contradict, add, subtract, or vary from the written terms, or for the purpose of altering the meaning of the contract

Question 4

State Railway Authority NSW v Health Outdoors

Answer 4

The appearance of completeness of a document is not conclusive, only a evidentiary foundation

Question 5

Shepperd v Ryde Corpration

Answer 5

The assurances in the council gave rise to a collateral contract between the parties. It was their intention that P should rely on these documents and he had done so. The reluctance of the courts to find a collateral contract where a statement in question could have been included in the main contract was displaced here because it was not unnatural for the parties to treat the contract as devoted only to the purchase of the land.

Question 6

Hoyt’s Pty Ltd v Spencer

Answer 6

The collateral contact is supplementary to the main contract; therefore, the collateral contract cannot contradict or change the main contract

Question 7

L’estrange v F Graucob Ltd

Answer 7

Terms incorporated by signature do not require notice

Question 8

Curtis v Chemical Cleaning and dying Co

Answer 8

Incorporation by signature does not apply when a misrepresentation has been made

Question 9

Toll v Alphapharm

Answer 9

Upheld L’estrange (incorporation by signature)

Exceptions for the signature rule include misrepresentation, mistake, duress, or other vitiating factors

Question 10

Ocean sun line special shipping company inc v Fay

Answer 10

Where terms are unusual, reasonable notice must be given.

Such notice, or even terms, mustn’t be presented in a form contractual in nature (e.g. brochure)

Terms given after the formation of a contract can’t alter that contract already made

Question 11

Baltic shipping v dillion

Answer 11

Unusual terms must be given notice

As she was given no opportunity to decline the terms of the contract, the terms were not enforcable