Incorporation Flashcards
What is incorporation
Asks is this term a part of the contract where terms lie outside of the contract itself. The approach differs depending on whether the contract had been signed or not. E.g. park a car in the lot after driving by sign with terms, whether or not those terms are binding is a question of incorporation, did you get reasonable notice etc.
What is the general rule for unsigned contract
terms are incorporated if either actual knowledge or if reasonable notice has been given
Red hand rule:
onerous or unusual clauses require clear notice (Thornton).
Interfoto:
the term that you should pay for how long you should have a photo was onerous and burdensome and there was no reasonable notice, so term was not incorporated
Incorporations by dealing
Hardwick Game Farm
At some point, because the supplier had been really consistently communicating that when they enter the contract they want the terms from the contract note, if the other side has continued to engage in business with that person and not said anything, they are sending the signal they agree to those terms
What about signed contracts
If the contract is signed by the party it does not matter if party has read or understood the contract or if the terms are onerous or complex; a signature binds them
L’Estrange
When a document containing contractual terms is signed, then, in the absence of fraud, or, I will add, misrepresentation, the party signing is bound, and it is wholly immaterial whether he has read the document or not.
Toll
If you do not read the contract it is not an excuse