Terms and Breach

Question 1

Gibson v Manchester CC

Answer 1

Contract terms must be clear and certain

Question 2

Routledge v Mckay

Answer 2

A statement must be made at the time of or just before contracting in order to be a term

Question 3

Bannerman v White

Answer 3

Importance of a statement may make it a term of the contract

Required hops to be untreated with sulphur

Question 4

Oscar Chess v Williams

Answer 4

Claimant car dealer knew more about cars than layperson - defendant’s statement as to year of registration was therefore not a term

Question 5

Dick Bentley v Harold Smith

Answer 5

Defendant car dealer purchased car for claimant - knew more about cars so statement as to condition was a term

Question 6

Schawel v Reade

Answer 6

Defendant prevented the claimant from checking the horse so assumed responsibility for its satisfactory quality

Question 7

Hopkins v Tanqueray

Answer 7

No guarantee of quality as standard practice at auctions

Question 8

Ecay v Godfrey

Answer 8

Seller of boat stated it was in good condition but advised the claimant to get a survey - onus of verification lay with purchaser

Question 9

Jacobs v Batavia

Answer 9

Extrinsic evidence may not be adduced which seeks to add, vary or contradict the terms of the contract - ‘four corners of the contract ‘rule

Question 10

J Evans v Andrew Merzario

Answer 10

Parole evidence rule only applies to wholly written contracts - didn’t apply to the facts so term of oral variation promise was a term

Question 11

Interfoto v Stiletto

Answer 11

Onerous terms must be highlighted (big red hand rule)

Question 12

Inntrapeneur Pub Co v East Crown

Answer 12

Entire agreement clause re-inforce the parole evidence rule

Question 13

Liverpool CC v Irwin

Answer 13

Term implied into contract to make it work legally - lease failed to state who was responsible for upkeep of common parts of building

Question 14

Malmud v BCCI

Answer 14

Implied a term into employment contract that employer ill act in a trustworthy fashion

Question 15

Shirley v Southern Foundries

Answer 15

Officious bystander test - a term will be implied into a contract if it is so obvious that it should reasonably be in the contract

Question 16

The Moorcock

Answer 16

Term implied due to business efficacy that the wharf would be deep enough for the claimant’s ship at low tide

Question 17

British Crane v Ipswich

Answer 17

Term will be implied if common to trade or professional custom

Question 18

McCutcheon v McBrayne

Answer 18

Term will be implied on the basis of a regular and consistent course of dealings on the same terms

Question 19

Poussard v Spiers

Answer 19

Missing the opening performances of the contract - important term that went to the root of the contract = condition

Question 20

Bettini v Gye

Answer 20

Missing rehearsals did not go to the root of the contract = warranty

Question 21

Head v Tattersall

Answer 21

Condition subsequent = a stipulation or state of affairs which causes existing contractual obligations to terminate if some species event occurs

Question 22

Arcos v Ronaasen

Answer 22

Obviously unfair decision to repudiate contract over minor breach of s13 (description) - now regulated by s15A SGA

Question 23

Lombard North Central v Butterworths

Answer 23

Courts upheld classification of condition in conrract

Question 24

Schuler v Wickman

Answer 24

Classification of terms in the contract is a strong indication of the parties’ intentions, but cannot lead to an unreasonable result

Question 25

Hong Kong First Shipping v Kawasaki

Answer 25

Does the breach deprive the innocent parties of substantially the whole benefit of the contract - if yes, breach of condition, if no, breach of warranty

Question 26

The Mihalis Angelos

Answer 26

Loading date will always be a condition

Question 27

Bunge v Tradax

Answer 27

Arrival date will always be a condition

Question 28

Aerial Advertising v Batchelor Peas

Answer 28

Breach of condition or warranty may depend on context - did not phone BP before flying on Armistice Day was breach of condition

Question 29

Hochster v De La Tour

Answer 29

Anticipatory repudiatory breach = immediate right of election, even before breach occurs

Question 30

The Santa Clara

Answer 30

Notification of termination to the other party is required

Question 31

Howard v Pickford Tool

Answer 31

An unaccepted repudiation is a thing writ in water

Question 32

Stocznia Gdanska v Latvian Shipping

Answer 32

Innocent party allowed reasonably time to decide when facing an anticipatory repudiatory breach

Question 33

Yukons v Rensburg

Answer 33

Commitment to affirm must be clearly and unequivocally communicated

Question 34

White & Carter v McGregor

Answer 34

Upon affirmation, innocent party must continue to perform

Must have legitimate interest in affirming

Question 35

Hounslow v Twickenham Garden Development

Answer 35

Cannot affirm if requires other party’s cooperation

Question 36

The Alaskan Trader

Answer 36

No legitimate interest if affirmation is wholly unreasonable

Question 37

The Dynamic

Answer 37

Burden is on the contract breaker to show that the innocent party has no legitimate interest in performing the contract - only when affirmation would be wholly unreasonably

Question 38

Reichman and Dunn v Beveridge Gauntlett

Answer 38

Landlord may have a legitimate interest in affirming a lease if market changes