Incorporation of Terms Flashcards
(16 cards)
What case involved the distinction between a term and a representation in contracts?
Oscar Chess v Williams vs Dick Bentley v Harold Smith (Motors)
In Dick Bentley v Harold Smith, statements made were held to be a term of the contract due to the parties’ positions and knowledge.
What was the outcome of Harlingdon & Leinster Enterprises v Christopher Hull Fine Art regarding the attribution to Gabriella Munter?
Breach of implied term from s13 of Sale of Goods Act
The goods did not conform with the description as they were not attributed to Munter.
In L’Estrange v Graucob, what was the significance of the hirer’s ability to read the contract?
All terms were incorporated despite the hirer not reading the contract
The case emphasized the importance of signature in contract incorporation.
What principle is established in Olley v Marlborough Court Hotel regarding the incorporation of terms?
All terms must be incorporated at the time the contract is made
The notice about liability was deemed too late as it was presented after the contract was formed.
What was the ruling in Chapelton v Barry U.D.C. regarding the location of contractual terms?
Terms must be expected to be found in the place where the contract is made
The exclusion clause was not visible at the point of contract formation.
What does the term ‘onerous terms’ refer to in contract law?
Terms that require special notice to be incorporated
This is often referred to as the red hand rule.
What case highlighted the need for special notice regarding onerous terms?
Interfoto v Stilletto
The case involved a fee for late return of borrowed transparencies.
What was the significance of the ruling in Thornton v Shoe Lane Parking regarding liability terms?
Terms were not incorporated as they were only visible after purchase
Lord Denning emphasized the lack of opportunity to review terms with a person.
In McCutcheon v David MacBrayne Ltd, what was the main issue regarding incorporation?
Argument of incorporation through course of dealing
The agent was aware of usual paperwork but did not receive it this time.
What is the difference between an exclusion clause and a limitation clause?
Exclusion clause means no liability; limitation clause caps liability
Exclusion clauses can completely remove liability for losses.
What did Lord Morton of Henryton state about excluding negligence in contract clauses?
Exclusion must be in clear words to be valid
General terms will not suffice to exclude liability for negligence.
What does the Unfair Contract Terms Act 1977 state about exclusion clauses?
Exclusion clauses must be reasonable
It assesses the reasonableness based on the facts of each case.
What distinguishes a penalty clause from a liquidated damages clause?
Penalty clauses are void; liquidated damages are a genuine pre-estimate of loss
Penalty clauses aim to deter breaches, while liquidated damages quantify loss.
What was the outcome in Dunlop v New Garage & Motor Co. regarding the clause on selling tires?
Defense claimed the clause was a penalty clause
Guidelines were established to differentiate between penalty and liquidated damages.
In Parking Eye v Beavis, what was the Supreme Court’s stance on the penalty clause argument?
Rejected the penalty clause argument; guidelines were not rigid rules
The £80 ticket was not deemed manifestly excessive.
What was held in Wall v Rederiaktiebolaget Luggude regarding penalty clauses?
Penalty clauses are completely void and cannot limit damages
The case involved a dispute over whether the clause was a penalty.
