Incorporation of Contract Terms

Question 1

In which case was it decided that onerous clauses would be more difficult to incorporate?

Answer 1

Thornton v Shoe Lane Parking

Question 2

What is the authority for the contra preferentum rule?

Answer 2

Houghton v Trafalgar Insurance

Question 3

What is the authority for terms not being included if they were not notified about till after?

Answer 3

Olley v Marlborough Court

Question 4

What is the authority for a signature incorporating all the terms?

Answer 4

L’Estrange v Graucob

Question 5

In which case was it decided that if clauses were more onerous, more measures had to be taken to alert the contracting party to them?

Answer 5

Interfoto Picture Library v Stilletto

Question 6

In which case was it decided that terms could be implied through previous dealings?

Answer 6

Spurling v Bradshaw

Question 7

What is the rule on penalty clauses?

Answer 7

Dunlop v New Garage
To amount to a liquidated damages clause the sum specified must be a genuine pre-estimate of loss. A penalty clause is where the sum specified acts in terrorem (to punish, or to deter a breach). It will be held to be penalty if the sum stipulated for is extravagant and unconscionable in amount in comparison with the greatest loss that could conceivably be proved to have followed from the breach

Question 8

Courts can imply terms based on local custom

Answer 8

Hutton v Warren

Question 9

Where a consistent course of dealings has taken place courts will imply a term

Answer 9

Spurling v Bradshaw

Question 10

What case is the officious bystander test?

Answer 10

Shirlaw v Southern Foundries

Question 11

What case is the business efficacy test?

Answer 11

The Moorcock