contract law Flashcards

(110 cards)

1
Q

Cutter v Powell (1795)

A

Context:Cutter was a sailor hired to work on a ship for a fixed sum, payable only upon completion of the voyage. He died three-fourths of the way through the journey, and his widow sued for a proportionate payment.
Question Raised:Is partial performance sufficient to claim payment under a contract that stipulates full completion?
General Rule:No. Where a contract explicitly requires full performance as a condition for payment, failure to complete means no entitlement to any remuneration.

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2
Q

Re Moore & Co. v Landauer & Co. [1921]

A

Context:A contract for the sale of canned fruit specified that the goods be packed in cases of 30 tins. The seller delivered cases of 24 tins, though the overall quantity was correct. The buyer rejected the delivery.
Question Raised:Can a buyer reject goods for non-compliance with minor packaging requirements?
General Rule:Yes. Exact performance is required, and deviations from agreed terms, even if minor, can justify rejection of goods.

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3
Q

Roberts v Havelock (1832)

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Context:A shipwright agreed to repair a ship but did not specify when payments would be due. After completing some work, he requested payment, which was refused.
Question Raised:Does a contractor have a right to payment for partial performance when the contract does not specify payment terms?
General Rule:Yes. Where the contract does not require full completion before payment, the contractor may claim payment for work done.

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4
Q

Sumpter v Hedges [1898]

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Context:A builder agreed to construct two houses for a lump sum but abandoned the project after partially completing the work. The owner had to hire another builder to finish the job.
Question Raised:Can a contractor claim payment for incomplete work under a lump sum contract?
General Rule:No. Under a lump sum contract, no payment is due until full performance is achieved, unless the other party voluntarily accepts part performance.
H. Dakin & Co. Ltd v. Lee [1916]
Context:A building contractor carried out work with some minor deviations from the contract’s specifications. The client refused to pay, arguing that exact performance was required.
Question Raised:Can a contractor claim payment when the work is substantially but not precisely performed?
General Rule:Yes. Substantial performance allows for payment, subject to deductions for defects.

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5
Q

Bolton v Mahadeva [1972]

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Context:A contractor installed a heating system that was defective and reduced the house’s efficiency. The owner refused to pay, arguing that performance was not sufficient.
Question Raised:When is performance substantial enough to entitle a contractor to payment?
General Rule:If defects are major, the work is not considered sufficiently performed to warrant payment.

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6
Q

Planche v Colburn (1831)

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Context:An author was contracted to write a book for a series but was prevented from completing it when the publisher canceled the series.
Question Raised:Is a party entitled to payment if they are prevented from completing their performance by the other party?
General Rule:Yes. If one party prevents performance, the other may recover compensation for work already done.

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7
Q

Levey & Co v Goldberg [1922]

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Context:A buyer initially agreed to purchase goods but later refused delivery. The seller claimed they had fulfilled their obligation by offering the goods.
Question Raised:Does tendering goods constitute performance under a contract?
General Rule:Yes. If a seller properly tenders delivery, they have performed their obligation, and the buyer cannot refuse without justification.

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8
Q

Charles Rickards Ltd v Oppenheim [1950]

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Context:A buyer tolerated repeated delays in the delivery of a car but later set a firm deadline, which the seller missed. The buyer then refused delivery and payment.
Question Raised:Can a party waive a contractual condition and later reinstate it?
General Rule:Yes. A party may waive a condition temporarily but can later reinstate it by giving reasonable notice.

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9
Q

Taylor v Caldwell (1863)

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Context:A music hall was rented for an event, but before the event took place, the hall was destroyed by fire. The lessee sued for breach.
Question Raised:Is a contract discharged when performance becomes physically impossible?
General Rule:Yes. The doctrine of frustration applies when an unforeseeable event beyond the control of both parties makes performance impossible.

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10
Q

Krell v Henry [1903]

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Context:A flat was rented for the purpose of viewing King Edward VII’s coronation procession, which was later canceled. The tenant refused to pay.
Question Raised:Can a contract be frustrated if its fundamental purpose is thwarted?
General Rule:Yes. If a contract is based on a specific purpose and that purpose becomes impossible, the contract may be frustrated.

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11
Q

Herne Bay Steam Boat Co v Hutton [1903]

A

Context:A boat was hired to view a naval event and for a day cruise. The naval event was canceled, but the cruise was still possible.
Question Raised:Does frustration apply if only part of a contract’s purpose is defeated?
General Rule:No. If a contract’s fundamental purpose remains possible, frustration does not apply.

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12
Q

Hochster v De La Tour (1853)

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Context:A courier was hired for a future trip but was informed in advance that his services were no longer needed. He sued for breach before the performance date.
Question Raised:Can a party sue for breach before the performance is due?
General Rule:Yes. Anticipatory breach allows an innocent party to claim damages as soon as the breach is communicated.
The Hongkong Fir [1962]
Context:A chartered ship was delivered in an unseaworthy condition but could be repaired. The charterer terminated the contract, arguing that the ship was not fit for purpose.
Question Raised:Does any breach justify termination, or only serious breaches?
General Rule:Only breaches of a condition or severe breaches of an innominate term justify termination.

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13
Q

BP Exploration v Hunt (1979)

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• Context: A contract was frustrated after part-performance, leading to disputes over financial adjustments. BP had invested in oil exploration but was unable to recover its costs after Libya nationalized the oil field.
• Question Raised: How should financial losses be allocated after frustration when one party has already partly performed?
• General Rule: The Law Reform (Frustrated Contracts) Act 1943 states that:
1. Payments made before frustration can be recovered.
2. If one party has already received a benefit, they may have to compensate the other for that benefit. In this case, Hunt benefited from BP’s investment, so BP was entitled to compensation.
16.Edwinton v Tsavliris (The Sea Angel) [2007]
• Context: A company hired a salvage ship to rescue another ship. The contract was for 20 days, but unexpected delays made the job much more expensive. The company argued that the contract was frustrated because it became too costly to continue.
• Question Raised: Can a contract be frustrated just because it becomes too expensive or difficult to perform?
• General Rule: No. Frustration is only allowed in extreme cases where performance is truly impossible. Financial hardship alone is NOT enough—if a contract becomes too costly or unprofitable, it must still be performed.
Case Fiches – Remedies in Contract Law

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14
Q

Johnson v Agnew [1980]

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Context:A buyer failed to complete a property purchase despite an order for specific performance. The property was later foreclosed, and the seller sought damages instead.
Question Raised:Can a court discharge an order for specific performance and award damages instead?
General Rule:Yes. If specific performance is ordered but not complied with, damages may be awarded as an alternative remedy.

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15
Q

Sky Petroleum Ltd v VIP Petroleum Ltd [1974]

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Context:A fuel supplier attempted to terminate a contract with a buyer despite a 10-year agreement, during a period of fuel scarcity.
Question Raised:Can a court order specific performance for a contract for goods?
General Rule:Yes, but only in exceptional cases. Specific performance is rarely granted for goods, but where damages are insufficient (e.g., scarcity), it may be ordered.

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16
Q

Patel v Ali [1984]

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Context:A woman agreed to sell her house but later faced extreme hardship (illness, amputation, husband’s incarceration). She resisted specific performance.
Question Raised:Can specific performance be refused due to hardship suffered after the contract?
General Rule:Yes. Courts may refuse specific performance based on post-contract hardship, even if unrelated to the contract itself.

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17
Q

Shell UK Ltd v Lostock Garage Ltd [1976]

A

Context:A petrol station, bound by an exclusivity agreement, breached the contract when Shell sold petrol to competitors at a lower price.
Question Raised:Can a party seek specific performance if they acted unfairly?
General Rule:No. Equity requires “clean hands,” meaning specific performance is denied if the petitioner acted unfairly.

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18
Q

Coop Insurance Society v Argyll Stores Ltd [1998]

A

Context:A supermarket closed despite a 35-year lease. The landlord sought specific performance to force continued operation.
Question Raised:Can a court order specific performance requiring ongoing business operations?
General Rule:No. Specific performance is not granted where it would require constant supervision or force a party to run a loss-making business.

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19
Q

Warner Bros Pictures Inc v Nelson [1937]

A

Context:An actress agreed to render exclusive services for Warner Bros but later signed a contract with another filmmaker.
Question Raised:Can a court prevent a party from breaching an exclusivity agreement?
General Rule:Yes. A prohibitory injunction may be granted where damages are inadequate, but courts will not compel personal services.

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20
Q

Araci v Fallon [2011]

A

Context:A jockey agreed to ride only for a particular owner but attempted to ride a rival horse in a major race.
Question Raised:Can an injunction prevent a party from breaching exclusivity terms?
General Rule:Yes. If a contract imposes specific obligations, an injunction may prevent breach, even if it does not force performance.

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21
Q

Luganda v Service Hotels [1969]

A

Context:A tenant was evicted when a hotel increased charges and changed the lock.
Question Raised:Can a mandatory injunction compel a party to reverse wrongful eviction?
General Rule:Yes. If a tenant is unlawfully evicted, a court may order reinstatement via a mandatory injunction.

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22
Q

Watts v Morrow [1991]

A

Context:A house was purchased based on a faulty survey. Repairs were needed, and the buyer sought damages.
Question Raised:Should damages cover repair costs or only the diminution in value?
General Rule:Only diminution in value is recoverable unless the defective work caused significant inconvenience or distress.

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23
Q

Ruxley Constructions v Forsyth [1995]

A

Context:A swimming pool was built shallower than agreed. The owner demanded reconstruction costs despite no impact on usability.
Question Raised:Should damages cover the full cost of cure if there is no functional loss?
General Rule:No. Damages are limited to loss of amenity when cost of cure is disproportionate.

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24
Q

Anglia Television v Reed [1972]

A

Context:An actor withdrew from a TV production, causing the show to be abandoned.
Question Raised:Can a claimant recover pre-contractual expenses as reliance damages?
General Rule:Yes, if expenses were within the parties’ contemplation as wasted costs in the event of breach.

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25
Hadley v Baxendale (1854)
Context: A crankshaft delivery was delayed, causing the mill to shut down and incur heavy losses. Question Raised: Are damages recoverable for all losses resulting from a breach? General Rule: No. Damages are limited to foreseeable losses arising naturally or within the parties’ contemplation. The Achilleas (Transfield Shipping Inc v Mercator Shipping Inc) [2008] Context: A ship returned late, leading to reduced future charter rates for the owner. Question Raised: Are damages determined solely by foreseeability or by industry practice? General Rule: Industry norms may limit liability, even if loss was foreseeable, where a party did not assume responsibility for that loss.
26
Attorney General v Blake [2000]
Context: A former British spy published a book revealing government secrets, profiting from the breach of contract. Question Raised: Can a court order disgorgement of profits for breach of contract? General Rule: In exceptional cases, courts may award restitutionary damages (account of profits) to prevent unjust enrichment from a breach. 15. Sky Petroleum Ltd v V.I.P. Petroleum Ltd [1974] Context: A fuel supplier attempted to terminate a long-term contract with a buyer during a period of fuel scarcity. Question Raised: Can a court order specific performance for a contract involving goods? General Rule: Yes, in exceptional cases. Normally, damages are the remedy for breach of contract, but specific performance may be ordered if damages are inadequate (e.g., when goods are scarce). Case Fiches – Negligence (Duty of Care & Breach)
27
Blyth v Birmingham Waterworks (1856)
Context: The defendant water company installed pipes that, due to an unexpected severe frost, burst and caused damage to the claimant’s property. Question Raised: What is the standard definition of negligence? General Rule: Negligence is the failure to do something a reasonable person would do, or doing something a prudent person would not.
28
Donoghue v Stevenson [1932]
Context: A woman suffered illness after drinking ginger beer containing a decomposed snail. She sued the manufacturer despite having no contract with them. Question Raised: Can a manufacturer owe a duty of care to consumers with whom they have no direct contract? General Rule: Yes. The “neighbour principle” establishes that a duty exists where harm to others is reasonably foreseeable.
29
Anns v Merton LBC [1978]
Context: A block of flats suffered structural damage due to inadequate foundations. The local council failed to inspect the construction properly. Question Raised: Can public authorities be held liable for negligence in regulatory inspections? General Rule: Yes. There is a duty of care if harm is foreseeable and there are no policy reasons to exclude liability.
30
Caparo Industries v Dickman [1990]
Context: A company relied on audited accounts to invest but suffered losses. The auditors were sued for negligence. Question Raised: Does an auditor owe a duty of care to investors who rely on published financial statements? General Rule: No. The three-stage test (foreseeability, proximity, and fairness) determines duty; auditors owe duties only to intended recipients of reports.
31
Darnley v Croydon NHS Trust [2018]
Context: A patient received incorrect information from hospital reception staff about waiting times, leading to delayed treatment and permanent injury. Question Raised: Do non-medical staff owe a duty of care to patients? General Rule: Yes. All NHS staff are responsible for patient safety, including administrative personnel.
32
Haley v London Electricity Board [1965]
Context: A blind man fell into an excavation site left inadequately marked. He sued the utility company for negligence. Question Raised: Must precautions account for people with disabilities? General Rule: Yes. The defendant must anticipate risks to all potential users, including those with disabilities.
33
Bourhill v Young [1943]
Context: A pregnant woman suffered a miscarriage after witnessing a motorcycle accident caused by the defendant’s negligence. Question Raised: Can a duty of care extend to people indirectly affected by an incident? General Rule: No. There must be sufficient proximity between the defendant and the claimant.
34
Stovin v Wise [1996]
Context: A council failed to remove a hazardous obstruction at a road junction, which contributed to an accident. Question Raised: Can a public body be held liable for failing to act? General Rule: Generally, no. Liability for omissions arises only where a duty has been assumed.
35
Smith v Littlewoods [1987]
Context: Vandals repeatedly started fires in an abandoned cinema, eventually causing damage to neighbouring properties. Question Raised: Can a property owner be liable for third-party actions on their land? General Rule: Usually no, unless they created or failed to mitigate the danger.
36
Carmarthenshire County Council v Lewis [1955]
Context: A child escaped from school grounds and caused a driver to swerve and crash. Question Raised: Can an institution be responsible for third-party actions? General Rule: Yes. When responsibility is assumed over third parties (e.g., children), a duty of care exists.
37
Stansbie v Troman [1948]
Context: A decorator left a house unlocked, allowing a burglar to steal valuables. Question Raised: Can a contractor be liable for third-party crimes? General Rule: Yes. If a contractor creates a foreseeable risk, they owe a duty to prevent harm. X (Minors) v Bedfordshire County Council [1995] Context: Children suffered harm due to a local authority’s failure to intervene in an abusive home. Question Raised: Do local authorities owe a duty of care to protect children from abuse? General Rule: Generally, no. public policy considerations often limit liability.
38
Robinson v Chief Constable of West Yorkshire Police [2018]
Context: A pedestrian was injured in a police arrest operation. Question Raised: Do police officers owe a duty of care during operational activities? General Rule: Yes. Police are liable for foreseeable harm caused by positive acts, but not for general crime prevention failures.
39
Hill v Chief Constable of West Yorkshire [1989]
Context: The mother of a murder victim sued the police for failing to catch the serial killer sooner. Question Raised: Do police owe a duty of care in criminal investigations? General Rule: No. There is no general duty to prevent crime or protect individuals from criminals. 15. Bolam v Friern Hospital Management Committee [1957] Context: A patient suffered injuries due to electroconvulsive therapy. The hospital argued it followed standard medical practice. Question Raised: What is the standard of care in professional negligence cases? General Rule: The Bolam Test states that a professional is not negligent if they acted in accordance with a practice accepted by a responsible body of professionals. 16. Bolitho v City & Hackney Health Authority [1997] Section: Negligence (Duty of Care & Breach) A child suffered brain damage after a doctor failed to attend. The doctor argued that even if they had attended, they would not have intubated. Question Raised: Can a court reject a body of expert opinion if it is not reasonable? General Rule: Yes. The Bolitho Test refines Bolam, allowing courts to disregard expert opinions that are not logically defensible. 17. Nettleship v Weston [1971] Context: A driving instructor was injured due to a learner driver’s mistake. Question Raised: Does a learner driver owe the same duty of care as an experienced driver? General Rule: Yes. The standard of care is objective, meaning all drivers—including learners—must meet the standard of a competent driver. 18. Rigby v Chief Constable of Northamptonshire [1985] Context: The police fired a tear gas canister into a shop during a siege, causing fire damage. Question Raised: Can the police be liable for negligence in operational decisions? General Rule: Yes. Where police actions directly cause harm, they can be held liable, unlike in cases of general crime prevention (e.g., Hill v Chief Constable of West Yorkshire). 19.Osman v Ferguson [1993] Context: The police failed to prevent a teacher from stalking and ultimately murdering a student’s father, despite warnings. Question: Do the police owe a duty of care to individuals in danger? General Rule: Courts ruled there was no liability due to public policy concerns (later challenged by the ECHR in Osman v UK). Case Fiches – Negligence (Causation & Remoteness)
40
Barnett v Kensington & Chelsea Health Management Committee [1968]
Context: A patient presented at a hospital with symptoms of arsenic poisoning but was sent home without treatment. He later died, and his widow sued for negligence. Question Raised: Can a defendant be liable if negligence occurred but would not have changed the outcome? General Rule: No. The “but for” test applies—if the harm would have occurred anyway, there is no liability.
41
Cook v Lewis [1952]
Context: Two hunters negligently fired in the plaintiff’s direction, injuring him, but it was unclear which shot caused the injury. Question Raised: Can liability be imposed when multiple defendants acted negligently but causation is uncertain? General Rule: Yes. When two negligent parties contribute to a harm, joint liability may be imposed to ensure fair compensation.
42
Hotson v Berkshire AHA [1987]
Context: A young boy suffered a hip injury, and delayed medical treatment reduced his chance of recovery by 25%. Question Raised: Can a claimant recover damages for loss of chance? General Rule: No. If a claimant cannot show that, on the balance of probabilities, negligence caused the harm, no liability arises.
43
Gregg v Scott [2005]
Context: A doctor misdiagnosed a lump, delaying cancer treatment, which reduced survival chances from 42% to 25%. Question Raised: Is a reduction in survival probability enough for a claim in negligence? General Rule: No. A claim must prove that negligence likely (over 50%) caused the harm.
44
Wilsher v Essex AHA [1988]
Context: A premature baby was given excessive oxygen, which was one of five possible causes of blindness. Question Raised: Can liability arise when negligence is only one of several potential causes? General Rule: No. If multiple independent factors could have caused the harm, causation must be proven conclusively.
45
Bonnington Castings v Wardlaw [1956]
Context: A worker developed lung disease after prolonged exposure to dust, some of which was due to employer negligence. Question Raised: Can an employer be liable if their negligence contributed to harm but was not the sole cause? General Rule: Yes. If negligence materially contributes to harm, liability arises.
46
McGhee v National Coal Board [1973]
Context: A worker developed dermatitis due to exposure to dust, worsened by lack of washing facilities. Question Raised: Can an employer be liable for increasing the risk of harm? General Rule: Yes. If negligence materially increases risk, causation may be inferred.
47
Fairchild v Glenhaven Funeral Services [2002]
Context: Workers developed mesothelioma after exposure to asbestos from multiple employers. Question Raised: When multiple employers expose workers to the same risk, who is liable? General Rule: All employers are jointly liable if each contributed to a material increase in risk.
48
Chandler v Cape Plc [2012]
Context: A parent company was sued for asbestos exposure that occurred at its subsidiary’s workplace. Question Raised: Can a parent company be liable for its subsidiary’s negligence? General Rule: Yes, if the parent company assumed responsibility for employee safety.
49
Carslogie Steamship Co. Ltd v Royal Norwegian Government [1952]
Context: A negligently damaged ship suffered further harm from a storm during repairs. Question Raised: Can a natural event break the chain of causation? General Rule: Yes. If an unforeseeable natural event causes additional damage, the original negligence is not liable for the subsequent harm.
50
McKew v Holland [1969]
Context: A claimant suffered an initial injury due to employer negligence. Later, he fell down stairs while acting recklessly, worsening his injury. Question Raised: Can a claimant’s own conduct break the chain of causation? General Rule: Yes. If a claimant’s unreasonable actions contribute to further harm, liability may be excluded.
51
Spencer v Wincanton Holdings Ltd [2009]
Context: A worker, previously injured due to employer negligence, later fell while refueling his car without assistance. Question Raised: Does further injury resulting from an initial harm count as contributory negligence or break causation? General Rule: Contributory negligence applies unless the claimant’s actions are so unreasonable as to break causation.
52
Knightley v Johns [1982]
Context: A negligent driver caused a tunnel crash. A police officer’s reckless command led to another officer’s injury. Question Raised: Can a third party’s actions break causation? General Rule: Yes. If a third party’s actions are highly unforeseeable, they break the chain of causation.
53
Wieland v Cyril Lord Carpets [1968]
Context: A claimant wore a neck brace after an injury. Unable to use bifocal glasses, she fell and suffered additional injuries. Question Raised: Is a defendant liable for secondary injuries caused by initial harm? General Rule: Yes. If the claimant’s response to an injury is reasonable, the defendant remains liable. The Wagon Mound (No 1) [1961] Context: Oil leaked into a harbor, later igniting and causing damage. The defendant argued the fire was unforeseeable. Question Raised: Must damage be foreseeable to be recoverable? General Rule: Yes. Liability arises only for harm that is a reasonably foreseeable consequence of negligence.
54
Tremain v Pike [1969]
Context: A worker developed a rare disease from contact with rats on a farm. Question Raised: Can liability arise for highly unusual injuries resulting from negligence? General Rule: No. If a specific harm is unforeseeable, liability is excluded.
55
Smith v Leech Brain [1962]
Context: A worker suffered a minor burn, which triggered a pre-cancerous condition, leading to death. Question Raised: Does a defendant remain liable if a claimant’s pre-existing condition worsens the injury? General Rule: Yes. Under the “thin skull” rule, defendants take claimants as they find them. Case Fiches – Negligence (Defences & Limitations)
56
Jones v Livox Quarries [1952]
Context: A worker rode on the back of an excavator against company instructions. Another vehicle crashed into the excavator, causing severe injuries. Question Raised: Can a claimant’s own recklessness reduce damages in negligence claims? General Rule: Yes. If a claimant fails to take reasonable care for their own safety, damages can be reduced under contributory negligence.
57
Froom v Butcher [1976]
Context: A driver was injured in a crash caused entirely by the defendant but had not been wearing a seatbelt. Question Raised: Can failing to wear a seatbelt be considered contributory negligence? General Rule: Yes. Courts apply standard deductions: 25% if the injury would have been completely avoided, 10% if it would have been less severe.
58
Sayers v Harlow Urban DC [1958]
Context: A woman trapped in a public lavatory attempted to escape by climbing over the door, fell, and sustained injuries. Question Raised: Does an attempt to escape a dangerous situation count as contributory negligence? General Rule: Yes. Though the local authority was liable, the claimant’s risky escape attempt justified a reduction in damages.
59
Gough v Thorne [1966]
Context: A 13-year-old crossed the road outside a zebra crossing and was hit by a car. Question Raised: Can children be held contributorily negligent? General Rule: Generally no. Children are not held to the same standard as adults unless their actions were clearly unreasonable.
60
Morris v Murray [1991]
Context: A claimant willingly got into a plane with a pilot who had been drinking all day. The plane crashed, injuring the claimant. Question Raised: Can voluntarily engaging in risky behavior prevent a claim in negligence? General Rule: Yes. The claimant’s acceptance of the risk (volenti) barred recovery.
61
Baker v TE Hopkins & Sons Ltd [1959]
Context: A doctor attempted to rescue workers trapped in a well filled with toxic fumes and died in the process. Question Raised: Does the volenti defense apply in rescue situations? General Rule: No. Rescuers are not considered to have voluntarily assumed the risk.
62
Bowater v Rowley Regis Corp. [1944]
Context: A worker was forced to use an unruly horse despite raising safety concerns and was later injured. Question Raised: Can an employee be found to have accepted a risk simply by following employer instructions? General Rule: No. Volenti does not apply when an employee is compelled to take a risk.
63
Pitts v Hunt [1991]
Context: A passenger encouraged a drunk driver to speed and was injured in the resulting crash. Question Raised: Can a claimant recover damages if they were engaged in an illegal act? General Rule: No. Illegality (ex turpi causa) prevents claims arising from unlawful acts.
64
Gray v Thames Trains [2009]
Context: A claimant developed PTSD after a train crash, later committed a crime, and sought damages for the consequences of his conviction. Question Raised: Can damages be awarded for losses caused by a claimant’s own criminal actions? General Rule: No. The illegality defense bars recovery for self-inflicted harm resulting from crime.
65
Patel v Mirza [2016]
Context: A claimant sought to recover money used for insider trading, arguing unjust enrichment. Question Raised: Can a claimant recover money paid under an illegal contract? General Rule: Sometimes. Courts assess whether denying the claim would disproportionately harm legal principles. Why Patel Won: * The illegal insider trading never actually took place. * Denying recovery would unjustly enrich Mirza. * Allowing recovery did not undermine the policy behind the law prohibiting insider trading.
66
Baker v TE Hopkins and Sons Ltd [1959]
Context: A doctor attempted to rescue workers trapped in a well filled with toxic fumes and died in the process. Question: Does the volenti defense apply in rescue situations? General Rule: No. Rescuers are not considered to have voluntarily assumed the risk.
67
1. Cutter v Powell (1795)
Background/Context: Cutter was hired to work on a ship from Jamaica to Liverpool and was to be paid upon full completion of the voyage. He died before the voyage ended. Legal Question: Is partial performance sufficient to claim payment if full performance was contractually required? General Rule: A party is not entitled to payment unless full performance of the contract is completed, unless otherwise agreed. Reasoning: The court enforced strict performance, holding that since Cutter did not complete the voyage, his estate was not entitled to any payment.
68
2. Roberts v Havelock (1832)
Background/Context: A carpenter made repairs on a ship and claimed payment before all repairs were complete. Legal Question: Can payment be demanded for partial performance where it benefits the other party? General Rule: Partial performance may be accepted for payment if the contract allows or if the party has taken benefit from the work. Reasoning: The court held payment was due for the portion completed and used, recognizing a more flexible application of the performance rule.
69
3. H. Dakin & Co Ltd v Lee (1916)
Background/Context: Builders completed work with minor defects, and the client refused to pay. Legal Question: Does substantial performance entitle the performing party to payment? General Rule: If substantial performance is rendered, the party may recover the contract price minus deductions for defects. Reasoning: The work was substantially done, and minor defects did not justify total non-payment.
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4. Taylor v Caldwell (1863)
Background/Context: A music hall burned down before a concert was held, making the event impossible. Legal Question: Can a contract be discharged when performance becomes impossible due to no fault of either party? General Rule: A contract is frustrated when a supervening event makes performance impossible. Reasoning: The destruction of the hall released both parties from their obligations due to impossibility.
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5. Davis Contractors Ltd v Fareham UDC (1956)
Background/Context: Builders faced unforeseen delays and increased costs and sought more payment. Legal Question: Does a contract become frustrated if performance becomes more difficult or expensive? General Rule: Mere difficulty or increased expense does not frustrate a contract. Reasoning: The contract was still possible to perform, though less profitable; no frustration occurred.
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6. Tsakiroglou v Noblee Thorl (1962)
Background/Context: A trade route was closed, and goods had to be shipped via a more expensive route. Legal Question: Does the closure of a convenient route frustrate a shipping contract? General Rule: A contract is not frustrated if performance remains possible by other means. Reasoning: The contract did not require the use of a specific route, so it was not frustrated.
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7. National Carriers Ltd v Panalpina (1981)
Background/Context: A warehouse lease was interrupted by road closure for 20 months. Legal Question: Can a lease be frustrated by temporary impossibility of use? General Rule: Frustration can apply to leases but only where performance becomes radically different. Reasoning: A 20-month interruption in a 10-year lease was not enough to frustrate the contract.
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8. Edwinton Commercial Corp v Tsavliris (The Sea Angel) (2007)
Background/Context: Delays occurred in returning a vessel due to external legal and administrative issues. Legal Question: How should frustration be assessed where there is a combination of delays and administrative failures? General Rule: Frustration requires a multi-factorial approach, including risk allocation and foreseeability. Reasoning: The delay did not amount to frustration because the risks were reasonably foreseeable and allocated by the contract.
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9. The Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha (1962)
Background/Context: A ship was delayed due to unseaworthiness caused by crew incompetence. Legal Question: When does a breach justify termination of contract? General Rule: A breach must deprive the other party of substantially the whole benefit of the contract to be repudiatory. Reasoning: The breach did not amount to fundamental deprivation of benefit, so the contract was not discharged.
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10. Sky Petroleum Ltd v VIP Petroleum Ltd (1974)
Background/Context: In an oil shortage, a supplier refused to deliver fuel under a fixed-price agreement. Legal Question: Can specific performance be granted where damages are inadequate? General Rule: Specific performance is available when goods are unique or damages are not adequate. Reasoning: Due to fuel scarcity, money damages were not sufficient; specific performance was granted.
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11. Patel v Ali (1984)
Background/Context: A house buyer sought specific performance against a seller who became disabled. Legal Question: Should specific performance be refused due to hardship? General Rule: Courts may refuse specific performance if it causes undue hardship. Reasoning: The seller’s personal circumstances justified refusal of specific performance.
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12. Shell UK Ltd v Lostock Garage Ltd (1976)
Background/Context: A fuel supplier was accused of unfair pricing and buyer refused to comply. Legal Question: Is specific performance available when the claimant is not acting equitably? General Rule: A party must come to court with “clean hands” to obtain equitable remedies. Reasoning: Shell’s conduct disqualified it from equitable relief.
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13. Watts v Morrow (1991)
Background/Context: A buyer of property sued for distress and inconvenience due to defects. Legal Question: Are damages for distress available in commercial contracts? General Rule: Damages for distress are not usually available unless the contract was for peace of mind. Reasoning: Only modest damages were awarded due to the commercial nature of the transaction.
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14. The Mamola Challenger (2010)
Background/Context: A ship charter was cancelled but the owner suffered no loss as it was re-hired at a higher rate. Legal Question: Can reliance loss be claimed where there is no actual loss? General Rule: No damages where loss is not suffered or mitigation was successful. Reasoning: The claimant suffered no loss due to successful mitigation.
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15. Anglia TV v Reed (1972)
Background/Context: A production was cancelled when an actor withdrew. Legal Question: Can reliance damages include pre-contractual expenses? General Rule: Pre-contractual reliance costs can be recovered if within the parties’ contemplation. Reasoning: The actor should have foreseen these losses, so recovery was allowed.
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16. Whincup v Hughes (1871)
Background/Context: A watchmaker died shortly after taking an apprentice’s fee. Legal Question: Is partial failure of consideration enough for recovery? General Rule: There must be total failure of consideration to recover. Reasoning: The apprentice received some benefit, so no recovery was allowed.
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17. Attorney General v Blake (2000)
Background/Context: A former spy published a book in breach of confidentiality. Legal Question: Can profits be recovered for breach of contract? General Rule: In exceptional cases, an account of profits may be awarded. Reasoning: National security justified a punitive remedy.
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18. Morris v Murray (1991)
Background/Context: A claimant accepted a flight with a drunk pilot and was injured. Legal Question: Does volenti non fit injuria bar recovery? General Rule: Voluntary assumption of risk is a full defence to negligence. Reasoning: The claimant knowingly accepted the risk, so no damages were awarded.
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19. Pitts v Hunt (1991)
Background/Context: Two underage, intoxicated individuals crashed a motorcycle during illegal activity. Legal Question: Can a claimant recover damages where the claim arises from illegal conduct? General Rule: Claims based on illegal acts are barred under the principle of ex turpi causa. Reasoning: The illegal joint enterprise made it unjust to award damages. Understood. I’m processing all of the requested cases below using the structured format you approved: Background/Context, Legal Question, General Rule, and Reasoning.
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1. Davis Contractors v Fareham UDC [1956]
Background/Context: Davis agreed to build houses for a fixed price, but due to labour shortages and delays, the work cost significantly more and took longer. Legal Question: Does increased difficulty or expense amount to frustration of a contract? General Rule: A contract is not frustrated merely because it becomes more difficult or expensive to perform. Reasoning: The contract was still capable of being performed and no radically different obligation was imposed; thus, no frustration.
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2. Tsakiroglou v Noblee Thorl [1962]
Background/Context: Closure of the Suez Canal forced sellers to ship goods via a longer, costlier route. Legal Question: Does the closure of an expected shipping route frustrate a contract? General Rule: A contract is not frustrated if performance remains physically possible, albeit less convenient or profitable. Reasoning: The sellers could still deliver via the Cape of Good Hope, so frustration did not apply.
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3. National Carriers Ltd v Panalpina [1981]
Background/Context: A 20-month road closure blocked access to leased premises. Legal Question: Can a lease be frustrated by temporary inaccessibility? General Rule: Leases can, in principle, be frustrated, but only where the interruption renders performance radically different. Reasoning: Since the lease term was 10 years, the 20-month closure was insufficient to frustrate the lease.
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4. Robinson v Harman [1848]
Background/Context: Harman promised to lease a property but could not deliver due to lacking title. Legal Question: What measure of damages applies when a contract is breached? General Rule: Damages aim to put the claimant in the position as if the contract had been performed. Reasoning: The claimant was awarded loss of bargain, not just out-of-pocket expenses. 🔍 Facts: * The defendant, Harman, promised to lease a property to the claimant, Robinson, for 21 years. * Robinson, relying on this promise, incurred expenses in preparation to move in. * However, Harman later refused to grant the lease, claiming he had no legal right to do so. * Robinson sued for damages. ⚖️ Legal Issue: What is the correct measure of damages when a party breaches a contract? 🧾 Held: The court ruled in favor of Robinson. 🧷 Principle Established: The purpose of damages in contract law is to put the injured party in the position they would have been in had the contract been properly performed. This is now known as the expectation measure (also called “benefit of the bargain”).
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5. Radford v De Froberville [1977]
Background/Context: Defendant bought land agreeing to build a wall and then sold it without building. Legal Question: Can a claimant recover the cost of cure rather than diminished value? General Rule: A claimant may recover cost of cure if they genuinely intend to use it to rectify the breach. Reasoning: The court found the claimant was entitled to the full cost of building the promised wall.
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6. Watts v Morrow [1991]
Background/Context: A buyer of a defective property claimed distress damages. Legal Question: Are damages for distress recoverable in commercial contracts? General Rule: Damages for inconvenience are generally not available unless the contract is for enjoyment or peace of mind. Reasoning: Only modest damages were awarded; the main focus remained on financial loss.
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7. Large v Hart [2021]
Background/Context: A buyer sued for cost of remedying major building defects. Legal Question: Should courts award cost of cure where defects severely undermine the property value? General Rule: Where the diminution in value does not compensate the real loss, cost of cure may be appropriate. Reasoning: Cost of cure was appropriate due to significant defects and unique circumstances. 🔍 Facts: * The seller, Hart, agreed to sell a leasehold house to Large, representing that the lease had about 18 years left. * After the sale, it turned out the lease had only 7 years remaining. * Large sued for damages, claiming the property was worth less with a shorter lease. ⸻ ⚖️ Legal Issue: What is the measure of damages when a buyer is misled about the value of what they contractually agreed to buy? ⸻ 🧾 Held: The court ruled in favor of Large (the buyer). ⸻ 🧷 Principle Established: The correct measure of damages is the difference in value between what was promised and what was delivered. This is aligned with the expectation measure established in Robinson v Harman: putting the claimant in the position they would have been in if the representation had been true.
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8. Morris-Garner v One Step (Support) Ltd [2018]
Background/Context: Breach of a restrictive covenant and dispute over appropriate remedy. Legal Question: When can damages reflect a hypothetical release fee or “negotiating damages”? General Rule: Such damages are only available where the loss is not measurable by traditional means. Reasoning: The Supreme Court held that negotiating damages are not standard for all breaches.
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9. The Mamola Challenger [2010]
Background/Context: A shipowner claimed damages after early contract termination, despite securing better terms. Legal Question: Can damages be claimed if no actual loss was suffered? General Rule: A claimant must prove actual loss; mitigation must be considered. Reasoning: Since the replacement contract was more profitable, no damages were awarded.
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10. Anglia TV v Reed [1972]
Background/Context: Actor Reed pulled out of a production, causing its cancellation. Legal Question: Are pre-contractual expenditures recoverable? General Rule: Pre-contractual expenses are recoverable if they were within the reasonable contemplation of the parties. Reasoning: The court allowed recovery since Reed was aware of the preparation work involved.
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11. Whincup v Hughes (1871)
Background/Context: A father paid a fee for his son’s apprenticeship. The master died after one year. Legal Question: Is partial failure of consideration sufficient for recovery? General Rule: Recovery is only permitted where there has been a total failure of consideration. Reasoning: Since the apprentice received one year of training, the claim failed.
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12. Caparo Industries plc v Dickman [1990]
Background/Context: Investors sued for relying on audit reports in a company takeover. Legal Question: When is a duty of care owed in negligence? General Rule: A duty arises where (1) harm is foreseeable, (2) there is proximity, and (3) it is fair, just and reasonable. Reasoning: The court held no duty was owed because the auditors’ report was not intended for that purpose.
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13. Carmarthenshire County Council v Lewis [1955]
Background/Context: A child left unsupervised ran onto the road, causing a driver to crash and die. Legal Question: Can a third party owe a duty for failing to prevent another’s harmful conduct? General Rule: A duty may arise where there is an assumption of responsibility. Reasoning: The council was liable due to its duty to supervise the child.
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14. Stansbie v Troman [1948]
Background/Context: A decorator left a house unlocked; a thief entered and stole valuables. Legal Question: Does a defendant owe a duty to prevent harm by third parties? General Rule: A duty may arise where the defendant creates the source of danger. Reasoning: By leaving the house insecure, the decorator was liable for the foreseeable theft.
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15. Robinson v Chief Constable of West Yorkshire Police [2018]
Background/Context: An elderly woman was injured during a police arrest. Legal Question: Do police owe a duty of care during operational acts? General Rule: Police owe a duty not to cause foreseeable personal injury during operational activities. Reasoning: The Supreme Court allowed the claim, rejecting blanket immunity for the police.
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16. Swinney v Chief Constable of Northumbria Police [1997]
Background/Context: A police informant’s identity was leaked, and she suffered threats. Legal Question: Can the police owe a duty in non-operational decisions? General Rule: Police can owe a duty where they assume responsibility and expose informants to harm. Reasoning: A duty was recognised due to the sensitive and voluntary cooperation of the claimant.
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17. Hill v Chief Constable of West Yorkshire [1989]
Background/Context: The mother of a murdered woman claimed the police were negligent in failing to catch the serial killer earlier. Legal Question: Do police owe a duty of care to victims of crime generally? General Rule: No duty is owed absent specific assumption of responsibility. Reasoning: Imposing liability would lead to defensive policing; no duty was found.
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18. Hall v Brooklands Auto Racing Club [1933]
Background/Context: A fatal crash occurred at a motor race, and spectators sued. Legal Question: What standard of care is required in dangerous sports? General Rule: Reasonableness is judged from the perspective of the “man on the Clapham omnibus”. Reasoning: The injury was an accepted risk of racing; no negligence found.
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19. Glasgow Corporation v Muir [1943]
Background/Context: A tea urn was spilt on children visiting a public tearoom. Legal Question: How is the duty of care assessed? General Rule: A defendant must meet the standard of a reasonable person, not one with hindsight. Reasoning: The accident was unforeseeable; no breach of duty occurred.
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20. Cook v Lewis (1952)
Background/Context: Two hunters shot at a duck; one hit the claimant, but it was unclear which. Legal Question: How is liability handled when causation is uncertain? General Rule: Courts may impose joint and several liability where both acted negligently. Reasoning: Both were liable unless one could prove it was not their bullet.
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21. Gregg v Scott (2005)
Background/Context: A delayed cancer diagnosis reduced survival chances by 42%. Legal Question: Can damages be awarded for “loss of a chance”? General Rule: Damages are not awarded for loss of a chance where success was below 50%. Reasoning: The claim failed as the chance of survival was under 50% even without negligence.
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22. Jobling v Associated Dairies (1981)
Background/Context: A worker injured at work later developed a separate disabling illness. Legal Question: Is the employer liable for the full loss of earnings? General Rule: Compensation is reduced for supervening events not caused by the defendant. Reasoning: The second illness was unrelated; damages were limited to the pre-illness period.
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23. The Wagon Mound (No 1) [1961]
Background/Context: An oil spill caused a fire at a nearby dock. Legal Question: Are damages recoverable if the type of damage was unforeseeable? General Rule: Only foreseeable types of damage are recoverable in negligence. Reasoning: Fire damage was not foreseeable from the oil spill; no liability.
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24. Smith v Leech Brain [1962]
Background/Context: A man with a pre-cancerous condition died after a minor burn at work. Legal Question: Is a defendant liable for full injury where the claimant has a predisposition? General Rule: The “thin skull rule” makes a defendant liable for full extent of harm. Reasoning: Since some injury was foreseeable, the defendant was liable for all consequences.
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25. Jones v Livox Quarries [1952]
Background/Context: A worker riding unsafely on a vehicle was injured. Legal Question: Does contributory negligence reduce damages? General Rule: Damages may be reduced if the claimant’s carelessness contributed to the harm. Reasoning: His unsafe behaviour contributed to the injury, justifying reduced damages.