Final Exam

Question 1

Shirlaw v Southern Foundries

Implied terms in contract

Answer 1

Officious bystander test - so obvious it goes without saying

Question 2

BP Refinery v Shire of Hastings

Implied terms in contract

Answer 2

Composite test - 5 conditions to be satisfied

Question 3

Provost Developments v Collingwood Towers

Conditions affecting formation

Answer 3

“Subject to solicitors approval” = Binding condition, not pre-requisite

Question 4

Connor v Pakerau Store

Conditions affecting formation

Answer 4

“Subject to finance” - must make reasonable efforts to fulfill condition

Question 5

Thornton v Shoe Lane Parking

Exemption Clauses

Answer 5

Notice of exemption must be given at time of contracting

Question 6

Burnett v Westminster Bank

Exemption Clauses

Answer 6

Constructive notice must be given in a way plaintiff would expect

Question 7

Livingstone v Roskilly

Exemption Clauses

Answer 7

Ambiguous notice = not effective/adequate

Question 8

King v Wilkinson

Mistakes

Answer 8

Unilateral mistake - one party one mistake

Question 9

Ware v Johnson

Mistakes

Answer 9

Common mistake - both parties same mistake

Question 10

Conlon v Ozolins

Mistakes

Answer 10

Mutual mistake - both parties different mistake

Question 11

Herbert Morris v Saxelby

Contracts in Restraint of Trade

Answer 11

‘Secrets’ no more than general skills and knowledge that anyone would acquire

Question 12

Brown v Brown

Vendor Contracts

Answer 12

Length of restraint must be justified and reasonable

Question 13

Bisset v Wilkinson

Misrepresentation

Answer 13

Must be false statement of fact not merely opinion

Question 14

Dimmock v Hallett

Puff

Answer 14

Mere puff does not constitute misrepresentation

Question 15

March Construction v CCC

Silence

Answer 15

Silence does not constitute misrepresentation

Question 16

Wakelin v RH & EA Jackson

Distortion of Positive Representation

Answer 16

Where silence constitutes a failure to make full disclosure, what is left unsaid constitutes misrepresentation

Question 17

Starlight Enterprises v Lapco Enterprises

Cancellation for Repudiation

Answer 17

No repudiation if willingness to continue contract demonstrated

Question 18

Hochster v De La Tour

Anticipatory Repudiation

Answer 18

Clear intention not to perform contract communicated

Question 19

Mana Property Trustee v James Development

Anticipatory Repudiation

Answer 19

Steps taken to ensure compliance removes claim of repudiation

Question 20

Westpac Merchant Finance v Winstone Industries

Affirmation

Answer 20

Right to cancel lost if contract affirmed with full knowledge of repudiation

Question 21

Walton Harvey v Walker & Homfrays

Frustration

Answer 21

Will not succeed where:

Frustrating event should have been foreseen

Question 22

Davis Contractors v Fareham Urban District Council

Frustration

Answer 22

Will not succeed where:

Contract is merely delayed or interrupted

Question 23

Krell v Henry

Futility

Answer 23

Performance futile because mutually understood underlying purpose of contract can no longer be achieved

Question 24

Hadley v Baxendale

Damages

Answer 24

Damages cannot be too remote

2 Limbs

Question 25

Redpath Industries v Cisco

Damages

Answer 25

Must be mitigated

Question 26

Ruxley Electronics & Construction v Forsyth

Damages

Answer 26

Cost of rectification not to outweigh benefit received

Question 27

Baltic Shipping Co v Dillon

Damages

Answer 27

Damages awarded if fruit of contract not provided