Useful Cases Flashcards

Question

Western Bank of Scotland V Addie

Answer 1

Voidable contracts - reduction Restitution must be possible. - If not, may lose right to have contract reduced - party seeking reduction must be able to retire both parties to pre-contractual states. - if not possible, A is barred from obtaining reduction and therefore can't recover price.

Answer 2

Adverts can (rarely) be treated as offer instead of invitation to treat if comes directly from manufacturer. Offered to pay £100 if used and got influenza Bought and used and contracted Held: offer as CBS deposited £1000 in bank as evidence of good intentions, made this known. She accepted contract when bought. Enforceable.

Answer 3

Adverts are usually invitations to treat. Magazine advert for sale of birds P tried to buy one but ran out Held: invitation not offer. No contract. Only offer if comes straight from manufacturer.

Answer 4

Offers accepted once driver reaches point of no return. Can't then be bound by any purported terms in ticket issues by machine beyond point of no return.

Answer 5

Display of good in window, even with price attached, is invitation to treat. Walking to counter is making offer, technically can haggle price.

Answer 6

Not what you think, but actions that count. Objective approach. MT Thought hire-purchase, tried to repossess piano after missed payment. D thought sale payed in instalments. Held: objective approach, reasonable person would assume contract of sale, thus ownership passed, couldn't repossess. Action for missed payments more appropriate.

Answer 7

Acceptance through performance R never communicated acceptance of contract changes, filed away. Dispute arise and questioned if valid contract. Held: written contract valid despite no communication of acceptance due to performance without any objection to terms.

Answer 8

Terms on restriction on trade is enforceable if reasonable. N sold guns and ammunition to company he set up, said he wouldn't compete with company, agreed in writing. Received money and shares. Attempted to break agreement to not engage in manufacturing guns for 25 years. Held: although restriction unusually wide, nature of business and type of customers mean it is appropriate. Not contrary to public policy.

Answer 9

Nature and effect of promises - A pure and simple expression of will of party undertaking obligation. - requires no acceptance. - requires no mutual consent.

Answer 10

Promises and business transactions. Statement made in course of business that bank would provide finance for land development was held to be legally binding. Gratuitous unilateral obligations do not need to be in writing if made during course of business

Answer 11

Verbal transactions Exchange of contracts is not necessary to form concluded contract where the terms are agreed in correspondence between the parties.

Answer 12

Referential bids Asked to submit tenders for purchase of shares. Submitted referential bid. Held: not valid as specification for tenders

Answer 13

Cross offers - identical NO concluded contract exists and no acceptance of either.

Answer 14

Revocation of an offer is not effective until communicated to offeree

Answer 15

Offers terminate by the expiry of specific time Or By lapse of reasonable time, depending on circumstances, if none specified

Answer 16

Counter or qualified offer kills original offer. Cannot then go back and try accept original offer.

Answer 17

Acceptance by email Emails fulfil all elements of binding contract. No defence to say haven't read all attachments

Answer 18

Undue influence Some unfair & improper conduct Form of cheating Usually some personal advantage gained

Answer 19

Common error - both same mistake - purported contract null Entered into separation agreement Never actually married Held: contract related to non-existent subject matter. Void due to fundamental, common mistake.

Answer 20

Common error - valid Contract for sale of vats. Both thought empty, paid £2. Contained lead, worth £300. Seller tried to reduce on grounds of error Held: common error but valid contract. Subject matter was vats not lead.

Answer 21

Unilateral error - one party makes mistake but if void or not depends on if induced or uninduced. If induced by misrep - grounds for reduction

Answer 22

Uninduced unilateral error: Simple misunderstanding not enough. Must claim certain facts and circumstances induced belief. Not sufficient if didn't/couldn't read doc or took for granted that it was what it was believed to be.

Answer 23

Misrep requires fact, not opinion Said thought farm would hold 2000 sheep. Didn't - sheep farm failed Action for recission Held: mere opinion, had no special knowledge.

Answer 24

Induced misrep - Statement must be material Purchased into partnership after told income £300 p/yr. actually £200. Held: entitled to rescind as relied on statement.

Answer 25

Misrep - must have relied on or been induced to enter by false statement of fact. Gun tampered with but buyer failed to inspect. Didn't work. Held: was unaware of misrep so couldn't have been induced to enter.

Answer 26

Misrep by conduct: Contacted to promote product based on rep that all 5 girls would be there. Ginger left Held: misrep by conduct

Answer 27

Scots law recognises that a voluntary obligation can be created by a promise Provided Promisor intended to be legally bound

Answer 28

Insane people have no contractual capacity Insanity presumed where guardian/curator bonis appointed Or else must be proven

Answer 29

Described as "habitual drunkard" Brought action to rescind contract he had signed when incapable through alcohol. Held: couldn't challenge as had waited 6 months after bill was due

Answer 30

Implied terms - those not expressly agreed but presumed to form part of contract Established trade custom - must be certain, uniform and well known. Can provide basis for implied term.

Answer 31

Breach of contract - mutuality Party in breach cannot comply other party to perform. If one party does not perform, the other need not perform Obligations under a contract are reciprocal in nature.

Answer 32

The law relating to breach of contract depends on two interrelated principles Mutuality Materiality

Answer 33

Hazards of self help remedies Stopping performance by way of recission or retention can turn out to be unjustified either due to no breach, or immaterial breach. Therefore the non performance intended to be a remedy, turns out to be a breach in itself.

Answer 34

Repudiation does not end the contract. Only when repudiation is accepted by way of the other party rescinding the contract do the innocent obligations cease.

Answer 35

Implied repudiation entitles the other party to rescind contract.

Answer 36

Frustration Occurs when the law recognises that by the fault of neither party, a contractual obligation has become incapable of being performed because the circumstances are radically different from those which were originally undertaken by the contract.

Answer 37

Accidental destruction - frustration P hired hall for concerts, great expense and effort Hall burned down prior Brought action for beach of contract for failing to provide hall and claimed damages for expenses incurred. Held: contract frustrated as fire meant contract impossible to perform. No claim

Answer 38

Constructive destruction - no frustration P taken lease of mansion, only able to occupy small area as used by military for war effort. Held: no actual rei interitus constructive total destruction. Not impossible to be used for contracted terms.

Answer 39

Frustration - method of performance become impossible Held: by naming exact ship which was to carry cargo, contract was frustrated as was impossible.

Answer 40

Frustration - commercial purpose gone Hired flat for royal procession. King ill and procession cancelled Held: frustrated as cancellation deprived contract of its commercial purpose.

Answer 41

Implied consent of reasonable person If a condition is such that every reasonable man would desire for his own protection to stipulate it and that no reasonable man would refuse to accept it Should be taken for granted in all contracts

Answer 42

Necessity - not stated as so obvious Mooring hired for ship. Tide went out and ship was damaged Contract made no mention of river bed but both parties knew tide would go out Held: contract should be taken to contain implied term that mooring would be safe. Owners liable for damage to ship.

Answer 43

Implied term due to nature of contract Issue whether implied into tenancy agreement term that landlord would ensure common parts clear of rubbish. Held: obvious implied term they should be kept clear.

Answer 44

Incorporation of express terms Bought cigarette vending machine, signed order form excluding liability for faults etc. Didn't work - argued breach of implied term Held: in absence of misrep. She was bound by terms she had signed, if she had read them or not.

Answer 45

Exemption clauses Source of terms to be incorporated must be of a contractual nature Held: receipt for deck chairs isn't contract, receipt is not like travel documents, doesn't body terms.

Answer 46

Exemption clauses Notice of contract terms must be given to party before or at time of contract formation Paid hotel in advance, on wall of bedroom was exclusion clause, furs stolen. Held: contract completed at reception desk, no subsequent notices could add terms.

Answer 47

Exemption clauses Party attempting to incorporate terms must adequately inform other party of terms Car sunk in ferry, had used a few times. Sometimes signed doc containing exclusion, sometimes not. This time hadn't. Claimed exclusion clause incorporated through previous dealings. Held: no consistency in course of dealing and therefore not incorporated.

Useful Cases Flashcards

(71 cards)