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Contract Law: Text, Cases, and Materials

Contract Law: Text, Cases, and Materials

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ONTENTS
Preface V
Acknowledgements vi
Table of Cases xix
Table of Statutes xxxviii
Table of Statutory Instruments xli
Table of Treaties, Conventions, and European Legislation xlii
1 INTRODUCTION 1
1. The Aims of This Book 1
2. The Scope of the Law of Contract 4
3. Transactions 8
4. European Contract Law 9
5. Transnational Contract Law 13
6. Conflicting Policies 14
7. Further Reading 20
 
PART I FORMATION
 
2 agreement: objective OR SUBJECTIVE? 23
 
1. Central Issues 23
 
2. Introduction 23
 
3. The Objective Theory Illustrated 26
 
4. The ‘Snapping Up’ Cases 38
 
5. The Role of Fault 41
 
6. Further Reading 49
 
3 OFFER AND ACCEPTANCE 50
 
1. Central Issues 50
 
2. Introduction 50
 
(a) General Application 52
 
(b) The Intention of the Parties 56
 
(c) The Inter-related Nature of the Rules 57
 
(d) The Time at which the Contract was Created 57
 
(e) Offer and Acceptance and the ‘Will Theory’ of Contract 59
3. Has an Offer Been Made? 60
 
(a) Advertisements 63
 
(b) Displays of Goods for Sale in a Shop 70
 
(c) Tenders 78
 
(d) Auction Sales 85
 
4. What Constitutes an Acceptance? 90
 
(a) Must the Acceptance Coincide Exactly with the Terms of the Offer? 91
 
(b) Must the Acceptance be Communicated to the Offeror? 110
 
(c) Prescribed Method of Acceptance 114
 
(d) Can Silence Amount to Acceptance? 115
 
(e) The Postal Rule 118
 
(f) Acceptance in Unilateral Contracts 127
 
(g) Acceptance in Ignorance of an Offer 128
 
5. Has the Offer been Withdrawn or Otherwise Terminated? 130
 
6. Conclusion 136
 
7. Further Reading 137
 
4 UNCERTAIN AND INCOMPLETE AGREEMENTS 138
 
1. Central Issues _ 138
 
2. Introduction 138
 
3. Cases in Which it Has Been Held that the Agreement is Too Vague or
 
Uncertain to be Enforced 148
 
4. Cases in Which the Courts Have Held the Agreement to be Valid and
 
Binding 151
 
(a) Make Use of the Criteria or Machinery that Has Been Agreed by the Parties in Order to Resolve the Uncertainty or to Clarify the
 
Word or Phrase that is Expressed in Vague Terms 151
 
(b) The Intervention of Statute 157
 
(c) Severance 157
 
(d) Implication of Terms 158
 
5. Conclusion 159
 
6. Further Reading 160
 
5 CONSIDERATION AND PROMISSORY ESTOPPEL 161
 
1. Central Issues 161
 
2. Introduction 161
 
3. Consideration: Its Scope 163
 
(a) Consideration Must Be Sufficient 164
 
(b) The Pre-existing Duty Rule 174
(c) Past Consideration 221
 
(d) Consideration Must Move From the Promisee 230
 
(e) Establishing the Necessary Link 231
 
4. Estoppel: Its Scope 236
 
(a) Estoppel: A Brief Definition 236
 
(b) Two Leading Cases 238
 
(c) The Ingredients of Promissory Estoppel 243
 
(d) The Different Types of Estoppel 247
 
(e) Unifying the Estoppels 249
 
(f) Locating Estoppels 267
 
5. The Future of Consideration 272
 
6. Further Reading 278
 
6 FORMALITIES 280
 
1. Central Issues 280
 
2. Introduction 280
 
3. The Reasons for Formal Requirements 282
 
4. Formal Requirements in English Contract Law 284
 
(a) Formal Requirements Which are Sufficient to Render the Promise
 
Binding 284
 
(b) Formal Requirements Which are Necessary in Order to Render a
 
Contract Binding 285
 
5. The Future of Formal Requirements 293
 
6. Further Reading 294
 
7 INTENTION TO CREATE LEGAL RELATIONS 295
 
1. Central Issues 295
 
2. Introduction 295
 
3. Domestic Agreements 296
 
(a) The Scope of the Presumption 300
 
(b) Rebutting the Presumption 302
 
(c) The Rationale Behind the Presumption 304
 
(d) The Relationship With Consideration 305
 
4. Social Agreements 307
 
5. Commercial Agreements 309
 
(a) Rebuttal of the Presumption 311
 
(b) Did the Parties Intend to Contract? 313
 
6. The Future of the Doctrine of Intention to Create Legal Relations 314
 
7. Further Reading 316
8 THE TERMS OF THE CONTRACT 319
 
1. Central Issues 319
 
2. Introduction 319
 
3. Two Preliminary Issues 321
 
4. Terms and Representations 321
 
(a) Three Illustrative Cases 323
 
(b) Drawing the Threads Together 334
 
5. The Parol Evidence Rule 335
 
6. Further Reading 341
 
9 INCORPORATION OF TERMS 342
 
1. Central Issues 342
 
2. Introduction 342
 
3. Incorporation By Signature 343
 
4. Incorporation By Notice 351
 
5. Incorporation By Course of Dealing and By Custom 363
 
6. Further Reading 369
 
10 IMPLIED TERMS 370
 
1. Central Issues 370
 
2. Introduction 370
 
3. Terms Implied By Statute 371
 
4. Terms Implied From Usage or Custom 377
 
5. Terms Implied By the Courts 379
 
6. Conclusion 400
 
7. Further Reading 403
 
11 THE INTERPRETATION OF CONTRACTS 404
 
1. Central Issues 404
 
2. Introduction 404
 
3. The Evolution From Literalism Towards Contextualism 405
 
4. Lord Hoffmann’s Re-Statement 407
 
5. The Scope of Lord Hoffmann’s Principles 410
 
(a) Revolutions, Discarding the ‘Old Baggage’, and the Role of Precedent 410
 
(b) The Objective Nature of the Test 414
 
(c) The ‘Factual Matrix’ 414
(d) The Exclusionary Rules 415
 
(e) The Meaning is Not a Matter of Dictionaries 418
 
(f) Something Has Gone Wrong With the Language 419
 
6. Judicial Reaction to Lord Hoffmann’s Re-Statement 422
 
7. Future Developments? 424
 
8. Further Reading 425
 
12 BOILERPLATE CLAUSES 426
 
1. Central Issues 426
 
2. Introduction 426
 
3. Boilerplate Clauses and Standard Terms 427
 
4. Boilerplate Clauses—Some Illustrations 432
 
(a) General Clause 432
 
(b) Retention of Title Clauses 432
 
(c) Price Escalation Clauses 433
 
(d) Interest 434
 
(e) Force Majeure Clauses 434
 
(f) Choice of Law Clauses 436
 
(g) Arbitration Clauses 437
 
(h) Jurisdiction Clauses 439
 
(i) Hardship Clauses 439
 
(j) Entire Agreement Clauses 440
 
(k) Termination Clauses 441
 
(l) Assignment 441
 
(m) Exclusion and Limitation Clauses 442
 
5. Further Reading 442
 
13 EXCLUSION CLAUSES 443
 
1. Central Issues 443
 
2. Introduction 443
 
3. Interpretation 445
 
4. The Unfair Contract Terms Act 1977 460
 
5. Two Illustrative Cases 485
 
6. Conclusion: Defence or Definition? 498
 
7. Further Reading 501
 
14 UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS 1999 502
 
1. Central Issues 502
 
2. Introduction 503
 
3. Unfair Terms in Consumer Contracts Regulations 1999 504
4. Director General of Fair Trading v. First National Bank 521
5. Enforcement of the Regulations 531
6. The Future 535
7. Further Reading 540
GOOD FAITH 542
1. Central Issues 542
2. Introduction 542
3. Walford v. Miles 544
4. Good Faith: The Negative View 554
5. Good Faith: The Neutral View 556
6. Good Faith: The Positive View 558
7. Good Faith: The Different Models 563
8. Further Reading 566
 
PART III SETTING THE CONTRACT ASIDE
MISTAKE 571
1. Central Issues 571
2. Introduction 572
3. Mistake: The Difficulties 573
4. Mistakes and Formation 575
5. Common Mistake 616
6. Mistake in Equity 636
7. Rectification 646
8. Non Est Factum 651
9. Further Reading 656
MISREPRESENTATION 657
1. Central Issues 657
2. Introduction 658
3. What is a Misrepresentation? 659
(a) Statements of Opinion 661
(b) Statements of Intention and Inducement 664
(c) Statements Made by Conduct 667
4. Duty of Disclosure 673
 
5. Rescission 678
 
(a) What is Rescission and When is it Available? 678
 
(b) Loss of the Right to Rescind 685
 
6. Damages 691
 
(a) Section 2(1) of the Misrepresentation Act 1967 691
 
(b) Common Law Negligence 703
 
(c) Deceit 703
 
(d) Section 2(2) of the Misrepresentation Act 1967 705
 
(e) Rescission and an‘Indemnity’ 710
 
7. Exclusion of Liability for Misrepresentation 711
 
8. Further Reading 713
 
18 DURESS 714
 
1. Central Issues 714
 
2. Introduction 715
 
3. Duress of the Person 716
 
4. Duress of Goods 722
 
5. Economic Duress 724
 
6. Conclusion 744
 
(a) Lack of Consent 744
 
(b) Illegitimacy 751
 
7. Further Reading 752
 
19 UNDUE INFLUENCE 753
 
1. Central Issues 753
 
2. Introduction 753
 
3. Three-party Cases 757
 
4. Two Leading Cases 758
 
5. The Post-Etridge Cases 785
 
6. Further Reading 791
 
20 UNCONSCIONABILITY AND INEQUALITY OF BARGAINING POWER 792
 
1. Central Issues 792
 
2. Introduction 792
 
3. Unfairness in the Cases 794
 
4. The Role of Statutes 810
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