Paper 3- Contract Law Flashcards

Question 1

Q

Theory of contract law:Overview of contract law:
•Butler v Excell O Corp 1977

Answer

A

Leading case carrying on from Guthing v Lynn 1832

Question 2

Q

Theory of contract law: Good faith-
•Victoria Laundry v Newman 1949

Answer

A

(Bilateral contract)
Facts: D had been late in fitting a boiler with the result that the C had suffered exceptional losses through the loss of a specific contract.
Held: contract in question was not in contemplation of the parties at the time of the contract and was this loss was not recoverable.

Question 3

Q

Contract theory :good faith-
•Wellesley v Withers 2015

Answer

A

‘A contract breaker is liable for damage resulting from his breach, if at the time of making the contract, a reasonable person in his shoes would have had damage of that kind in n mind as not unlikely to result from a breach’

Question 4

Q

Theory of contract law: balancing interests and justice-
•Olley v Marlborough

Answer

A

(Bilateral contract)
•exclusion clause invalid as not brought to Mrs O’s attention when she made the contract

Question 5

Q

Theory of contract law: balancing interests and justice:
•Thompson v LMS

Answer

A

(Bilateral contract)
•exclusion clause implied even though the terms could not be read and another document was needed

Question 6

Q

Theory of contract law: balancing interests and justice-
•Jackson v Horizon Holdiays

Answer

A

(Bilateral contract)
•man successfully sued for holiday of his and his family meme era even though only he had signed the contract

Question 7

Q

Theory of contract law: the principle of fault-
•Smith v Land &House Property 1884

Answer

A

(Bilateral contract)
Facts: tenant described as most desirable but was completely unreliable.
Held: as statement relied on the statement maker could be sued.

Question 8

Q

Theory of contract law: principle of fault-
•ParkingEye v Beavis 2015

Answer

A

(Bilateral contract)
Facts: A car was wrongly parked for 2hours and fined £85

Question 9

Q

Theory of contract law: morality-
•Pearce v brooks 1866

Answer

A

(Bilateral contract)
• a cab owners contract with a prostitute was void

Question 10

Q

Offer and acceptance: offer-
•Gibson v Manchester 1979

Answer

A

(Bilateral contract)
Facts: MCC wrote a letter to G saying they may be willing to sell the house and that if he wished he could make a formal application.
Held: invitation not an offer

Question 11

Q

Offer &acceptance: invitation to treat-
•Partridge v Critteden 1968

Answer

A

(Unilateral contract)
Facts: C placed an advert:’ bramblefinches, hens, 25s each’.
Held: invitation, not an offer.

Question 12

Q

Offer& acceptance: invitation to treat (adverts an offer)
•Carlill v Carbolic Smoke Ball

Answer

A

(Unilateral contract)
Facts: CBS was a flu remedy. Advert said that if you used it and got flu you would get £100.
Held: advert was an offer that had been accepted.

Question 13

Q

Offer& acceptance: invitation to treat (window display)-
•Fisher v Bell 1961

Answer

A

(Unilateral contract)
Facts: shopkeeper displayed knife in shop window with price tag
Held: invitation to treat

Question 14

Q

Offer& acceptance: Invitation to treat-
•Pharmaceutical Society v Boots 1953

Answer

A

(Unilateral contract)
Facts: drugs were stocked on the shelves which customers took to the tills.
Held: customers made the offer.

Question 15

Q

Offer& acceptance: Lots at an auction-
•British Car v Wright 1972

Answer

A

(Unilateral contract)
Facts: auctioneers not offering car for sale

Question 16

Q

Offer& acceptance: request for information-
•Harvey v Facey 1893

Answer

A

(Bilateral contract)
Facts: H requested lowest price for price of farm. F replied, H attempted to accept offer.
Held: invitation

Question 17

Q

Offer& acceptance: who can make an offer-
•Thornton v Shoe Lane Parking 1971

Answer

A

(Bilateral contract)
Facts: T put money into a machine in a car park
Held: the offer was the machine, the acceptance of the terms displayed was made when putting the money into the machine.

Question 18

Q

Offer& acceptance: length of an offer-
•Taylor v Laird 1856

Answer

A

(Bilateral contract)
Facts: T gave up being captain of a ship, he sailed back home as a crew member but he never asked to be one.
Held: no offer communciated

Question 19

Q

Offer& acceptance: offer lasting-
• Stevenson v McLean 1880

Answer

A

(Unilateral cotnract)
Facts: offer made on sale of iron, open until Monday. On Monday at 10am offerree asked whether credit terms were available, offer or then sold to another buyer.
Held: credit terms question was to gain information, offer still open and therefore breached.

Question 20

Q

Offer& acceptance: Revocation-
•Routledge v Grant 1828

Answer

A

(Bilateral contract)
Facts: offered house for sale to offered for 6 weeks. Changed mind and revoked offer within the 6 weeks.
Held: offer ended.

Question 21

Q

Offer& acceptance: Revocation-
•Dickinson v Dodds 1879

Answer

A

(Collateral contract)
Facts: reliable 3rd party withdrew offeror’s offer.
Held: offer is revoked

Question 22

Q

Offer& acceptance: Rejection-
•Hyde v Wrench 1840

Answer

A

(Bilateral contract)
Facts: W offered farm for £1000, H counted with £950 which was rejected by W. H then tried to accept the £1000 offer.
Held: offer no longer existed

Question 23

Q

Offer& acceptance: Lapse of time-
•Ramsgate v Montefiore 1866

Answer

A

(Bilateral contract )
Facts: M offered to buy shares on 8th June, this was accepted on 23rd November but he no longer wanted them.
Held: offer lapsed

Question 24

Q

Acceptance: conduct-
•Revellie v Anotech 2016

Answer

A

(Bilateral contract)
Facts: contract never signed as counter offer made but job progressed.
Held: acceptance by conduct.

Question 25

Q

Acceptance: postal rules-
•Adam’s v Lindsell 1818

Answer

A

(Bilateral contract)
Facts: A accepted L’s delayed letter
Held: contract was formed

Question 26

Q

Acceptance: electronic communication-
•Brinkibon v Stahag 1983

Answer

A

Facts: without out of office messages these are only operable when the office reopens.

Question 27

Q

Intention to create legal relations:
•Balfour v Balfour

Answer

A

Held: presumed not to exist in social /domestic agreements.

Question 28

Q

Intention to create legal relations: Business agreements-
• McGowen v Radio Buxton

Answer

A

Held: presumed to exist in business agreements

Question 29

Q

Intention to create legal relations: Business agreements-
•John v Vernon Pools 1938

Answer

A

Facts: agreement stated binding in honor only.
Held: not legally binding

Question 30

Q

Intention to create legal relations: Business agreements-
•Edward’s v Skywards 1969

Answer

A

Facts: S tried to avoid paying a voluntary ex gratis payment
Held: S failed as whole offer voluntary, intention existed.

Question 31

Q

Intention to create legal relations: Free gifts-
•Esso v Customs & Excise 1976

Answer

A

Facts: Esso offered free World Cup coins with purchases.
Held: intention existed as Esso attempting to gain more business from the offer.

Question 32

Q

Intention to create legal relations: Free gifts-
•McGowen v Radio Buxton 2001

Answer

A

Facts: M entered competition to win car, was given 4 inch replica
Held: intention existed.

Question 33

Q

Intention to create legal relations: Free gifts-
•Keinwort v Malaysian 1989

Answer

A

Facts: K lent £10million to a subsidiary of M. M would not guarantee the loan but stated its intention to ensure the subsidy had sufficient funds to repay. The subside did not repay.
Held: no intention but a guarantee would have made one.

Question 34

Q

Intention to create legal relations: Business or domestic agreement-
•Sadler v Reynolds 2005

Answer

A

Facts: agreement between a journalist and businessman to ghost write an autobiography. They were friends.
Held: for the journalist to prove it was a business agreement with resulting presumed intention.

Question 35

Q

Intention to create legal relations: Social or domestic agreements-
•Balfour v Balfour 1919

Answer

A

Facts: H went to work abroad and offered W £30 a month. He did not pay and later they divorced.
Held: purely domestic so no intention to create legal relation

Question 36

Q

Intention to create legal relations: Social & domestic agreements-
•Merritt v Merritt 1970

Answer

A

Facts: H left his W and agreed to pay her an income in return for her paying the mortgage.
Held: intention existed.

Question 37

Q

Intention to create legal relations: social& domestic agreements-
•Jones v Padavatton 1969

Answer

A

Facts: mother encouraged daughter to study for the Bar allowing her to stay in a house. Daughter did not pass, mother wanted to evict.
Held: no intention, parties close when agreement made.

Question 38

Q

Intention to create legal relations: social& domestic agreements-
•Simpkims v Pays 1955

Answer

A

Facts: lodger and 2 members of the household entered competitions in the lodgers name. They all paid equal shares of the entrance money.
Held: more than just a social arrangement, intention found.

Question 39

Q

Intention to create legal relations: Social& domestic agreements-
•Parker v Clarke 1960

Answer

A

Facts: young couple encouraged to sell their house to live with an older couple. Later asked to leave property.
Held: giving up their security meant there must be an intention.

Question 40

Q

Consideration:
• Currie v Misa 1875

Answer

A

•’consideration is some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.’

Question 41

Q

Consideration: consideration needs to be adequate but must be sufficient-
•Thomas v Thomas 1843

Answer

A

Facts: man wanted wife to live in his house after his death, she was charged £1 per year.
Held: sufficient consideration

Question 42

Q

Consideration: consideration needs to be adequate but must be sufficient-
•Chappell v Nestle 1960

Answer

A

Facts: customers of N could get songs if they sent in chocolate wrappers
Held: wrappers were consideration

Question 43

Q

Consideration: consideration needs to be adequate but must be sufficient-
•White v Bluett 1853

Answer

A

Facts: son took loan from father in return for promissory note. He never repaid the money but said he did not need to as he had agreed with his father to stop complaining about his fathers handing out of assets
Held: no consideration, no legal right to complain and natural love and affection were not consideration.

Question 44

Q

Consideration : consideration needs to be adequate but must be sufficient-
•Ward v Byham 1956

Answer

A

Facts: dispute over custody of a child. Father agreed for her to live with her mother in return for her being well looked after and happy
Held: consideration given, natural love and affection could be consideration

Question 45

Q

Consideration: Past consideration is no consideration-
•Re McArdle 1951

Answer

A

Facts: after work was carried out in a property a promise to pay £488 was made
Held: past consideration is no consideration

Question 46

Q

Consideration: Past consideration is no consideration-
•Re Casey’s Patent 1892

Answer

A

Facts: C worked on a patent, later told that he would receive payment for this
Held: consideration could be enforced

Question 47

Q

Consideration: Past consideration is no consideration-
•Lampleigh v Braithwait 1615

Answer

A

Facts: B was to be hanged for murder, L agreed to try to get B a pardon. Did so after which B promised to pay him £100 after which he refused to do so.
Held: actions taken at D request, so consideration

Question 48

Q

Consideration: consideration must love from the promise-
• Tweddle v Atkinson 1861

Answer

A

Facts: fathers of a couple who intended to marry agreed in writing to pay them a sum of money. Wife’s father died before paying. H sued
Held: H gave no consideration nor was a party to the agreement.

Question 49

Q

Consideration: performing a pre-existing duty cannot be the consideration for a new contract-
•Collin’s v Godefroy 1831

Answer

A

Facts: policeman had revived a court order to give evidence at a trial, later offered money to do so but he did not attend
Held: no consideration

Question 50

Q

Consideration: performing a pre-existing duty cannot be the consideration for a new contract-
•Stilk v Myrick 1809

Answer

A

Facts: C agreed to sail as crew for £5 a month, after desertions he agreed to take in extra work
Held: no consideration as already agreed to do everything possible in emergencies.

Question 51

Q

Consideration: performing a pre-existing duty cannot be the consideration for a new contract-
•Galsbrook v Glamorgan CC 1925

Answer

A

Facts: During a strike pit owner asked for extra protection from the police including some living, on site
Held:

Question 52

Q

Consideration: performing a pre-existing duty cannot be the consideration for a new contract-
•Hartley v Ponsonby 1857

Answer

A

Facts: as still but only 19 out of 36 crew remained.
Held: consideration as tasks much more dangerous

Question 53

Q

Consideration: performing a pre-existing duty cannot be the consideration for a new contract-
•Williams v Roffey 1990

Answer

A

Facts: Roffey hired Williams for £20,000 to refurbish some flats. W was failing to complete in time, Roffey would have had to pay consideration to tenants as a result so offered W another £10,300 to complete on time
Held: consideration existed because of the extra benefit of not having to pay tenants.

Question 54

Q

Consideration: consideration may be found where contractual duties are owed to third party-
•Shadwell v Shadwell 1849

Answer

A

Facts: D promised £150 a year until earning reached an agreed level in return for marrying Ellen Nichole, his fiancé
Held: promise to marry was consideration

Question 55

Q

Consideration: consideration may be found where contractual duties are owed to third party-
•Scotson v Pegg 1861

Answer

A

Facts: D was paid both by the supplier of coal and the purchaser of that coal to carry and unload it
Held: existing contractual duty owed to a 3rd party can amount to valid consideration.

Question 56

Q

Consideration: promise to pay-
•Pinnels case 1602

Answer

A

‘A creditor can claim the remainder of the debt even if they agree not to unless there is early repayment or payment of some kind’.

Question 57

Q

Consideration: promise to pay-
•Foakes v Beer 1894

Answer

A

Facts: F owed £2090. F could not pay in full so they agreed he could pay in installments. Later F sued for interest on the debt
Held: she was successful based on Pinnel

Question 58

Q

Consideration: promise to pay-
•Central London v High Trees House 1947

Answer

A

Facts: High Trees leaded blocked flats from CLP at a ground rent of £2,500. Lease was taken out in 1937. CLP agreed to reduce the rent to £1,250 during war years.
Held: rent to return to original agreed price

Question 59

Q

Consideration: promise to pay-
•Re Selectmove Ltd 1995

Answer

A

Held: No consideration

Question 60

Q

Consideration: promise to pay-
•D&C Builders v Rees 1965

Answer

A

Held: consideration

Question 61

Q

Privity:
•Beswick v Beswick 1967

Answer

A

Facts: PB was in poor health so agreed with his nephew (the D) to transfer trade . D agreed to pay PB wife after he dies. D paid once but never again.
Held: wife could not claim as she was a 3rd party to the agreement.

Question 62

Q

Privity:
•Dunlop v Selfridge 1915

Answer

A

Facts: Dunlop agreed with their dealer not to sell the tyres below a recommended retail price (RRP). Part of this agreement Dunlop required their dealers to have the same agreement with their retailers.
Held: Dunlop was 3rd party to the dealer and the their retailer so could not claim damages.

Question 63

Q

Privity: the relationship between privity and consideration/
•Jackson v Horizon 1975

Answer

A

Facts: J booked a 28 day holiday through an agent. The hotel was unsatisfactory. Judge said they J could claim but not his wife and children due to them being a 3rd party. He appealed.
Held: J was able to recover for his family. Due to exception.

Question 64

Q

Privity: general exceptions-
•Shanklin v Derek 1951

Answer

A

Facts: C were owners to a pier in Shanklin.Had a contract with contractors to have the pier repaired and painted. Paint did not last. C brought damages.
Held: C claimed damages as it was held it was a breach of warranty.

Answer 65

A

Facts: C owned several properties in London. C sold this to them and said not to built in the land. They promised. Purchaser undergoed multiple transactions then sold the land to Moxhay. He was aware of this but claimed he was a 3rd party.
Held: C could claim as because Moxhay was aware of the covenant he must abide by it.

Answer 66

A

Facts: an applicant for a job as a governess failed to disclose the fact that she had previously been married and remained silent in the point
Held: no misrepresentaiton

Answer 67

A

Facts: C purchased medical practice form the D. C induced to buy the practice that took £2000 yearly. Statement was true at the time but later the practice became worthless
Held: misrepresentation due to failure of mentioning it.

Answer 68

A

Facts: H won a bid at an auction for a piece of land and later found out it wasn’t ‘very fertile and improbable’ as he was told
Held: not misrepresentation as the comment was a mere fact.

Answer 69

A

Facts: D become the financial advisor for Oxford uni who sold his estate for half its value and drank himself to death. Executives asked for this to be set aside
Held: no misrepresentation.

Answer 70

A

Facts: C insured jewelry. Insurer didn’t ask whether her spouse had been previously convicted neither did C reveal that.
Held: misrepresentation

Answer 71

A

Facts: C put together spice girls. D signed a sponsorship agreements. One member gave a notice to leave the group changing what had been promised
Held: misrepresentation

Answer 72

A

Facts: C purchased a piece of farm land to use as a sheep farm. Farmer estimated the land would hold 2,000 sheep. This turned out to be wrong.
Held: statement of opinion do not misrepresentation

Answer 73

A

Facts: C purchased shares in the D company. Company lied on what they were using shareholders for
Held: misrepresentation

Answer 74

A

Facts: C purchased Corngraves estate from the D for £600,000.
Held: no misrepresentation. By getting his own experts to check out the reports he had not relied on the own accounts but his own judgement

Answer 75

A

Facts: a solicitor purchased into the partnership in the solicitors firm. He was told partnerships had an income of £300 yearly. He declined dthe offer to lol and the accounts. Income was only £200 yearly
Held: he was entitled to rescind the contract as he relied on the statement.

Answer 76

A

Facts: 3 properties contained commercial premises and residential accommodation. Landlord gave notices and then raised the rent
Held: misrepresentation because the trigger notices were not enough/ valid

Answer 77

A

Facts: Hedley Byrne were advertising agents placing contracts in n behalf of a client on credit terms. They asked their bankers to obtain credit reference from the clients bankers.
Held: clients bankers disclaimers was sufficient enough to protect them from liability.

Answer 78

A

Facts: C hired 2 dredging barges from the D for £1,800 weekly. D register was wrong
Held: D had not discarded the burden of proof by demonstrating they had reasonable grounds for believing it to be true.

Answer 79

A

Facts: in a company prospectus the D stated the company had the right to use steam powered trans as opposed to to horse powered trams.
Held: statement was not fraudulent.

Answer 80

A

Held: Newy J found that the representation as to the absence of arrears was made fraudulently or recklessly and in that basis Greenridge was successful.

Answer 81

A

Facts: C claimed he had been induced to invest shares in a lead and copper mining company
Held: misrepresentation

Answer 82

A

Facts: C purchased a lorry from the D advertised as the lorry being in exceptional condition which it wasn’t
Held: D affirmed the contract

Answer 83

A

Facts: C purchased a painting from the D both parties believe this painting was constable which it wasn’t
Held: misrepresentation but the C lost right to rescind the contract

Answer 84

A

Facts: C sold his mini to a rouge claiming to be an actor.
Held: contract was not void for mistake

Answer 85

A

Facts: complainants wanted to purchase an executive key from British aerospace.
Held: agreement between parties, the contract could not be rescinded

Answer 86

A

Held: damages under misrepresentation act should be assessed

Answer 87

A

Held: Lord Browne Wilkinson gave the following guidance in assessing emanates for fraudulent misrepresentation

Answer 88

A

Held: C could recover damages

Answer 89

A

Issues: Whether Kafco signed in duress, even though they had honored the contract
Held: Kafco were found to have signed the agreement under economic duress.

Answer 90

A

Facts: ITWP blocked a ship. They made several demands in relation to pay and conditions and also demanded the ship pay where to pay a large sum. Sip owners agreed
Held: money had been extracted under economic duress and could be recovered

Answer 91

A

Facts: C threatened not to complete the main contract for the purchase of shares unless subsidiary agreements were met.
Held: no economic duress. The privy council identified 4 relied to consider.

Answer 92

A

Facts: D sent a consolation game t of cigarettes to the wrong address. They were then stolen.
Held: threat to withdraw credit facility was lawful since under the terms that f the credit agreement credit could be withdrawn at anything. Therefore the threat was legitimats

Answer 93

A

Held: refusal to provide a substitute ship was not a crime or breach of contract but it still amounted to economic duress

Answer 94

A

Facts: without independent advice she made gifts of money and stick to the mother superior on behalf of the sisterhood

Answer 95

A

Facts: there were two other directors Bovil and Cottrel,”. There has been a long history of ill will between the parties and a struggle over who should ahdbr controlling powers with Armstrongg being the most aggressive
Held: where there is duress to the person there was no obligation to show that he would not have entered the agreement but for the treat

Answer 96

A

Facts: C husband agreed by contract to act as a second mate on the ship. The voyage was to take 8weeks and he was to be paid on completion. 6weeks in the trip the C husband died.
Held: Payment was on condition he worked the ship to Liverpool. Since he did not fulfill the condition C failed.

Answer 97

A

Facts: A contract for the sale of 3,100 tins of peaches described the tins as being packed in cases of 30. When Tina arrived they were packed in cases of 24.
Held: purchaser was entitled to reflect the goods as they were not as described.

Answer 98

A

Facts: C agreed to carry a cargo of specified quantity of hemp& iron and £5 per ton of hemp and 5shillings per ton of iron. D argued the contract had not been fully performed.
Held: contract could be divided into separate parts as the parties had agreed a price per ton. C was liable.

Answer 99

A

Facts: C husband agreed by contract to act as a second mate on the ship. The voyage was to take 8weeks and he was to be paid on completion. 6weeks in the trip the C husband died.
Held: Payment was on condition he worked the ship to Liverpool. Since he did not fulfill the condition C failed.

Answer 100

A

Facts: D promised to build a house according to specification and failed to carry out exactly all the specifications.
Held: builders were entitled to recover the contract price, less so much as ought to be allowed in respect of the items found to be defective

Answer 101

A

Facts: C agreed to decorate and furnish the D flat for £750 payable by two instalments and the balance on completion. C finished the work but D was unsatisfied and refused to pay.
Held: C was entitled to the money. They agreed price minus the cost of defects (£56)

Answer 102

A

Facts: C installed central heating in D home. Agreed price was £560. D was not happy with the work so refused to pay. Defects were £174
Held: failed since not enough was completed.

Answer 103

A

Facts: the contractor resurfaced a car park, but not in accordance with the specification/ contract, although the car park constructed was usable for the intended purpose
Held: the damage difference in value if it had been constructed to the right specification.

Answer 104

A

Facts: the C commerce’s writing and had completed a great deal of it when the D cancelled the series
Held: the C was entitled to recover £50 because the D had prevented the performance.

Answer 105

A

Facts: C agreed to build two houses and stables for the D. It was agreed that £565 would be payable on completion. The C commerce’s performance and then ran out of money so was unable to complete. He performed over half the contract.
Held: D had no choice but to accept partial performance as he was left with a half completed house.

Answer 106

A

Facts: involved delivery of Rolls Royce chassis, original date missed, then asked for it within 4 weeks. Again deadline missed, when completed was rejected
Held: considered what was meant by a reasonable time and appeared to approve the submissions made by the appellant.

Answer 107

A

Facts: union eagle paid 10% of the HK$4.2m price for a Hong King flat as a deposit. Completion was meant to be 5pm 30th September 1991, and clause 12 said failure to complete meant the deposit was forfeit and the agreement rescinded. They were 10mins late
Held: certainty was needed in the business world. The contracts term should be strictly enforced, and union eagle lost its deposits.

Answer 108

A

Held: the court found that the contract had not been variously terminated by the seller, and the buyer was entitled to specific performance.

Answer 109

A

Facts: C brought an action against the D for the rent arrears for the land the C leased to B. However the reason why he didn’t pay it was because the land was invaded by the enemy of the king
Held three rules.

Answer 110

A

Facts: C hired out a music hall in Surrey for the purpose of holding four grand concerts. C went to great exposure and effort in organising the concerts. But a week before the first concert took place the hall was destroyed by a fire
Held: C failed as the contract had been frustrated as the fire meant the contact was impossible to perform.

Answer 111

A

Held: such time was no longer as to put an end in a commercial sense to the commercial speculation entered upon by the shipowner and the charterers. The express exceptions were not intended to cover an accident causing such extensive damage. The contract was fustrated

Answer 112

A

Facts : a pianist who was to give a concert on a specified day was held to have been discharged from the contract by his illness in that day
Held: whilst the claim for loss of profits was dismissed, a small additional claim for expenses arising as a result of the pianist failure to notify the C survived.

Answer 113

A

Facts: 16year old girls agreed by contract to play the drums for the D band for 7 nights per week for 5 years. C suffered a mental breakdown and was told by his doctor he shouldn’t perform more than 4 nights. Band dismissed him
Held: C was unsuccessful as his medical condition made it impossible to perform. Contract was frustrated

Answer 114

A

Facts: contract for the sale and purchases of timber contained an option to purchase a timber yard. By wartime control order, trading under the agreement became illegal
Held: frustrated contract.

Answer 115

A

Facts: the government requisition the wheat, in pursuance of wartime emergency
Held: seller was excused from further performance of the contract as it was now impossible me to deliver the goods due to the governments lawful requisition

Answer 116

A

Facts: d hired a flat for viewing king Edward VIIs coronation and it didn’t proceed
Held: contract was frustrated as cancellation of the procession deprived it of its commercial purpose

Answer 117

A

Facts: d hired a steamboat for King Edward’s VII coronation celebrations. But it didn’t proceed
Held: contract was not distracted. As the contract had not been deprived of its sole commercial purpose.

Answer 118

A

Facts: C argued there was no. Reach as the failure to provide a licence was frustrating event in that the decision to grant licences rested with the secretary of state
Held: contract was not frustrated

Answer 119

A

Facts: Gamercos license to use the venue for a concert of Guns N Roses was revoked.
Held: frustrated contract

Answer 120

A

Facts: David contractors agreed to build 78 houses within 8 months for £85000. Due to shortage in skilled labour and material it took 22 months to complete and more expensive
Held: contract was not distracted. The contract has become more difficult to perform

Answer 121

A

Held: in order for a contract to be set aside, there must be a common mistake made during the formation of the contract and sale; this was not the case here

Answer 122

A

Held: this case suggests courts are reluctant to use this rule for frustration

Answer 123

A

Facts: C agreed to be a courier for the D for 3months starting on 1st June 1852. In 11th May the d write to the c stating he no longer wanted his services and refused to pay compensation
Held: when one party communicated their intention not to perform the contract, the innocent party need not wait until the breach has occurred before bringing their claim .They may sue immediately or they can choose to continue with the contract and wait for the breach to occur.

Answer 124

A

Facts: dispute had arisen under a time charter because the dishonest owners (those who had taken legal authority) has said their ability to carry out their contractual obligations was entirely dependent on the head owners
Held: anticipatory breach occurs when non- performance is inevitable.

Answer 125

A

Facts: Poussard entered a contract to perform as an opera singer for 3months. She become ill 5 days before the opening night and was unable to perform the first 4 nights. She was replaced
Held: breach of contract.

Answer 126

A

Facts: Bettini agreed contract to perform as an opera singer for 3months. He became ill and missed 6days of rehearsals. Employee sacked and replaced hime
Held: bettini breached contract of warranty so employer was not entitled to end the contract

Answer 127

A

Held: D were liable for wrongful repudiation

Answer 128

A

Facts: a heifer had been out up for sale, and the buyer had asked the seller if the heifer was in calf, to which he had been answered in the negative. However, after buying it, the heifer suffered a miscarriage and died
Held: considered a term

Answer 129

A

Held: the statement relating to the age of the car was not a term but a representation. The represent, Oscar chess Ltd as a car dealer had the greater knowledge and would be in a better position to know the age of the manufacturer than the D

Answer 130

A

Held: the statement was a term. Mr Smith as a car dealer had greater expertise and the C relied upon that expertise

Answer 131

A

Held: the statement was a representation and not a contractual term

Answer 132

A

Facts: C moored his ship at D wharf on the river Thames. His ship got damaged due to uneven surfaces and rocks on the riverbed
Held: the court introduced the business efficacy test. Led to the courts not implying a term.

Answer 133

A

Facts: C purchased a horse from D. C believed some statements which D made about the horse so purchased it. However, the horse had eye disease so couldn’t be used as a stud
Held: statement was a contractual term. D was in breach.

Answer 134

A

Held: the court of appeal applied the officious bystander test and do imply the term

Answer 135

A

Facts: C used services of the D garage on 3-4 occasions during 5years. Every time he was made to sign a document but this time was over phone and the exclusion cause wasn’t mentioned and the garage damaged the car
Held: garage was liable to pay damages

Answer 136

A

Held: court refused to imply a term fact as it was not necessary term to imply as the contract made business sense without it, nor was it obvious that shell would have agreed to it. They also refused to imply a term in law as it lacked sufficient certainty.

Answer 137

A

Held: a reasonable person would assume that the guarantee related to both existing and future debts.

Answer 138

A

Held: the Supreme Court said that reasonableness is to be judged objectively and in considering what the parties would have agreed.

Answer 139

A

Facts: C was a farmer who had a tendency on the D fields. C planted corn and barley on the fields and worked on the fields to ensure crops would grow. Tenancy was terminated
Held: court implied a term

Answer 140

A

Facts: Hillas brought 22000 units of timber from arcos with an agreement to buy 100000units next year for a discount rate at 5% which didn’t happen.
Held: this case was a mere agreement to agree

Answer 141

A

Facts: a contract for 3100 tons of peaches described them being picked in cases of 30, they where only packed in cases of 24
Held: purchaser was entitled to reflect the goods as they were not as they described.

Answer 142

A

Held: buyer successfully argued a breach of s13

Answer 143

A

Held: court of appeal held that the requirement that the car be suitable for touring was a condition. Plaintiff was not bound by it

Answer 144

A

Held: the privy council held that the defendants were liable to the plaintiff although there is no privity between Dr Grant and the manufacturer

Answer 145

A

Held: not laible

Answer 146

A

Held: the courts didn’t apply a term. Whilst this contract was of a defined type , it was reasonable for the travel agency to ensure that all accommodation offered, no matter where in the world, conformed with British standards.

Answer 147

A

Held: in signing the order form she was bound by all the terms contained in the form irrespective of whether she had read the form or not. Consequently her claim was unsuccessful

Answer 148

A

Held: the assistant had misrepresented the effect of the clause and therefore could not rely on the clause in the form even though the claimant had signed it

Answer 149

A

Held: the notice was ineffective. The contract had already been made by the time the claimant had seen the notice. It therefore did not form part of the contract.

Answer 150

A

Held: the exclusion clause was not incorporated into the contract

Answer 151

A

Held: the clause was incorporated as they had taken reasonable steps to bring attention to the party of the exclusion clause

Answer 152

A

Held: the machine itself constituted the offer. The acceptance was by putting the money into the machine. The ticket was dispensed after the acceptance took place and therefore the clause was not incorporated in the contract

Answer 153

A

Held: there was not a sufficient number of regularity of transactions to amount to a previous course of dealings capable of incorporating the exclusion clause. It was not reasonable to expect the claimant to remember the clause from one transaction to the next. Consequently, the garage was liable to pay for damages

Answer 154

A

Held: there was no consistency in the course of dealings and therefore the clause was not incorporated. The defendant was liable to pay for damages

Answer 155

A

Held: the clause could not be relied upon by the plaintiffs as the United States carriage of goods by sea act 1936 did not apply to Stevedores.

Answer 156

A

Held: claimant was unsuccessful

Answer 157

A

Facts: trueprint lost a couples silver wedding photos. They tried to rely on a clause that said they were only responsible for a replacement film when there was a failure to develop and print the photos
Held: unreasonable so could not be relied on

Answer 158

A

Held: it might be reasonable for a surveyor to exclude liability of the property was a higher value or to be used for investment for business purposes

Answer 159

A

Facts: C was a family owned business involved in the sale, largely through mail order, of computer equipment. The contract between parties contained a clause stating that the entirety of the contract was included within the contract documents and that parties agreed that no statements or representations by the parties had been relied upon when entering into the contract
Held: appeal was allowed

Answer 160

A

Facts: C farmer George Mitchell purchased 30lb of cabbage seed from the D for £192
Held: court of appeal held that the clause was unreasonable as the buyer would not have been aware of the fault whereas the seller would.

Answer 161

A

Held: lord lord urn stated that £600 was not allowed, that he could only recover his six month salary and no more. However, contract law has developed cases with speculative damages for mental distress.

Answer 162

A

Held: the Jackson’s made a contract with horizons for a family holiday and was entitled to recover damages not only for a breach of contract by horizons, but for the discomfort and distress the breach of contract had caused him. also entitled to recover damages for the distress and discomfort the breach of contract caused to his wife and children.

Answer 163

A

Facts: Jarvis was a solider for barking council. He chose to go for Christmas holiday in Switzerland. And given a brochure which they said were attractions were
Held: Jarvis could recover damages for the cost of his holiday.

Answer 164

A

Held: couldn’t recover the cost of the re-building because this would be totally out of proportion to the loss he had suffered. He could recover £2500 for loss of amenity but the law must cater for cases where full performance of the promise would vastly exceed the loss which has been suffered. But to award nothing would render the contractual promise illusory, and so a nominal award was appropriate

Answer 165

A

Held: court found for the d, viewing that a party could only successfully claim for losses stemming from breach of contract where the loss is reasonably viewed to have resulted naturally from the breach, or where the fact such losses would result from breach ought reasonably have been contemplated y the parties where the contract was formed.

Answer 166

A

Held: loss was not too remote. They stated that’s the test for remoteness in contract is narrower than it is in tort. While in tort any damage of a type which is reasonably foreseeable can be claimed, lord Reid ruled that, in contract, the D ought to have realised that the loss was not unlikely to result from the breach of contract

Answer 167

A

Facts: parsons ordered a bulk storage hopper to store pignuts to feed their top grade pigs from the D. When installing the hopper the D failed to ensure the ventilator was left open which caused the pignuts to go mouldy. The mouldy foods cause an outbreak of an infection which killed 254 pigs. Held: parsons was successful in their claim.

Answer 168

A

Facts: bitza failed to make a delivery (found not reasonably foreseeable). Seth became stressed and dealt with anxiety due to not selling card in Saturday. Zephyr teeny failed to deliver in time for festival and so Seth missed out on large profits.

Answer 169

A

Held: damages awarded to cover the replacement of the decals

Answer 170

A

Held: only nominal damages were awarded because he could only sell as many cars as he could get from the makers

Answer 171

A

Held: the supply of vanguard cars exceeded the demand had the plaintiff found another customer and sold to him as well as the D, the. There would have been two sales and two profits. Therefore, the D was liable for £61

Answer 172

A

Held: the loss of the chance of wining such as lucrative prize was a breach which afforded her the right to substantial, and not merely nominal damages. Such damages were not necessarily incapable of assessment

Answer 173

A

Held: entitled to recover the whole of the wasted expenditure. The D must have know that much expenditure had already been even incurred and would be wasted.

Answer 174

A

Held: Farley recovered £10,000 for his discomfort
Issues: he sought damages to compensate him for the diminution in enjoyment of his property he suffered because of the noise

Answer 175

A

Held: the plaintiff was under no duty to mitigate by buying new turbines. But since he had done so, the financial advantages he had gained from new turbines had to be taken into account. Thus, as the plaintiff saving in coal exceed the cost of the new turbines ,he was not entitled to damages. However, if the plaintiff had claimed damages before buying the new turbines, the D would have had no defence

Answer 176

A

Held: the court found the appellants had the right to carry out the contract and the claim for the entire value of the contract. The court did not accept the argument that was put forward by the respondent as to the enforcement by the appellant of the contract

Answer 177

A

Legatt J held that is had been reasonable for Thai to mitigate its loss by leasing the relevant aircraft, but that any monetary benefit received had to be taken into account when assessing damages. Thai had to account for any fuel saving that would arise from the use of lighter seats over their economic life. However, the judge also held that the onus was on Akihito to prove that Thai had received any benefit and the amount

Answer 178

A

Lord Denedin 3 rules concerning penalty causes

Answer 179

A

Facts: the transaction was effected by a sale and purchases agreement dated 28th February 2008, whereby Mr El Makdessi and Mr Ghoussaoub agreed that the 47.4% shareholding in an underlying company should be held between them in the ration of 53.88% to 46.12%

Answer 180

A

Facts: Beavis was the owner and driver of a vehicle which he parked in a retail shopping car park adjacent to the railway station. The owner of the car park contracted a scheme involving the erection at the entrance and 2h stay. Beavis left after 56mims over 2h period.

Answer 181

A

Held: the appellant must be treated as having asked for the Upton fire brigade to be sent to his farm and the fact that at the time the parties thought that the fire was in, its area did not prevent there being a contractual relationship. Appellant was liable

Answer 182

A

Facts: shipowner agreed a chartered fee for the transportation of steel billets. The charterers loaded general merchandise, in breach of agreement
Held: claimant for beyond nominal damages allowed.

Answer 183

A

Facts: C agreed to advertise and sell tickets for the D who was erecting stands for spectators to view the funeral of Duke of Wellington. D cancelled the arrangement without justification
Held: C may recover the value of services rendered

Answer 184

A

Facts: a small band wished to split with their manager
Held: no, this would force the parties into a working relationship

Answer 185

A

No specific performance order as would cause company to fall into liquidation

Answer 186

A

Facts: the offer to pay £5 more for a house if it was ‘lucky’ was too vague sand not an offer.

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Paper 3- Contract Law Flashcards

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