contract Flashcards

Question

Death

Answer 1

If the offeree dies then the offer ends and those dealing with his or her estate cannot accept the offer

Answer 2

Acceptance of an offer means unconditional agreement to all the terms of that offer

Answer 3

The court decided that a letter sent by S asking whether payment could be in installments wasn't a counter-offer but a mere enquiry. The offer was therefore still open to accept later

Answer 4

Acceptance muse be communicated fo the offeror. The person making the offer has to know that his or her offer has been accepted. It follows that silence alone isn’t accepted.

Answer 5

F said to B, “If I head no more from you, I shall consider the house mine at £30.” B didn’t reply. The court held that there was no contract as silence or inactivity isn’t acceptance

Answer 6

B had supplied coal to a railway company for many years on an informal basis with no written contact. The partners agreed it would be wise to have a formal contract written. The company sent a draft contract to B who made some amendments and sent it back. The railway company filed the document and never acceptance of the terms, yet both parties continued with contract. When a dispute arose, the court said that acceptance had taken place by conduct, through continuing to perform the contract without objection

Answer 7

Acceptance was to be made in writing by registered delivery. Y sent it by ordinary post. The court decided that the acceptance was effective. The requirement of registered delivery was for the benefit of the offeree so Y could take the risk of the ordinary post if he wished

Answer 8

Where acceptance is communicated by post, acceptance takes place the moment the letter is posted. The rule only applied if use of the post is reasonable, the letter is properly stamped and addressed, and the offeree can prove that the letter was posted

Answer 9

Wool was offered for sale and an acceptance letter was posted. The letter was delayed in the post and didn’t arrive for some time. Because of the delay, Lindsell assumed Addams didn’t want the wool and sold it to someone else. However, the court decided that there was a valid contract because acceptance took place as soon as the letter was placed in the post box

Answer 10

Where acceptance is made by an instant mode of communication

Answer 11

Messages received outside working hours will take effect when the offeree can reasonably expect it to be communicated to the offeror. This is likely to be the next working day for businesses

Answer 12

T sent acceptance of an offer by email to the offeror’s solicitor at 6pm on a Friday before a bank holiday. The solicitor had gone hime at 5:45pm and the email wasn’t actually read until Tuesday. The high court decided that the email took effect at 6pm Friday. This was a transaction that could have been completed that evening and 6pm wasn’t seen by the court as out of hours. The email was available to eve read on a mobile device within working hours so the solicitor could reasonably be expected to have read it

Answer 13

Each party to a contract must intend the agreement to be legally binding and therefore enforceable in court. This is an issue to be determined objectively

Answer 14

The courts presume agreements made between family members or close friends aren’t intended to form a contract, but the presumption can be rebutted

Answer 15

H promised to pay W an allowance while he was abroad. H failed to keep up with the payments and this caused the marriage to break down. W sued H for the money he owed her. The court decided that this was a domestic arrangement, and as the agreement had been made at an amicable point in their relationship, there was no intention or create a contract

Answer 16

Mr M had left his wife. An agreement to send her some money and sign over the house if she paid off the outstanding mortgage was held to create legally blinding obligations, as the parties were separated and about to get divorced. The agreement could be enforced h the court. Mr M had to pay

Answer 17

Three brothers were directors of a family business which had run into financial difficulty. They each loaned money to the business in the agreement that if any of them resigned as director, they would forfeit their loaned money. One brother resigned and attempted to recover the money he loaned. The court decided that the agreement was intended to be legally binding given the context in which the agreement between the brothers had been made

Answer 18

A mother persuaded her daughter to move from USA to UK and train as a barrister, in exchange for financial help and a house to live in. They later fell out and the mother tried to evict her daughter from the house. At the time when the arrangement was made, the mum and daughter were very close and so the court was satisfied that neither part at that time intended to enter a legally binding contract. This was a mere domestic agreement and the mum was entitled to the house back

Answer 19

An agreement between family members and their lodger over the sharing of winnings from a completion was legally binding. The court decided that the inclusion if the lodger, a non family member, meant the relatives must have intended to create legal relations. The lodger had also paid for the entry ticket

Answer 20

Three young women who worked together attended a bingo session where one of them won a prize of over £100,000. The question was whether there was a contract between them to share any winnings over £10. The suggestion of a prior agreeement was undermined when while waiting for the results of the competition, the others repeatedly asked if she was going to share. This suggested that an intention to create a legal relationship didn’t exist at that time, claim failed

Answer 21

A young couple were persuaded by an older couple to sell their house to move in with them, with the promise also that they would inherit the property on their death. Later the couples fell out and the young couple was asked to leave. The young couple successfully argued that they had a legally binding agreement, selling their house and sharing the running costs of the shared home indicated that the agreement was intended to be legally binding

Answer 22

I’m business dealings, the courts will presume that any agreement made was inteddd to be a contract

Answer 23

An airline pilot was ormsied a payment by his company on being made redundant, but the company didn’t pay it. The court decided that the promise was intended to be legally binding. The company therefore owed him the money

Answer 24

Mrs McGowan entered and won a radio competition to win a car. When the prize arrived, it was a toy car. Radio claimed there was no legally binding contract because it wasn’t a commercial agreement. The court decided that this was an enforceable contract as there wasn’t even a hint that this would be a toy. The competition was to promoted the radio and there wasn’t even reasonable expectation that it would be a real car

Answer 25

Mr Jones completed a football pools entry form, entered a competition and won. Vernon pools refused to pay, stating that in the back of the form were printed the words: “this agreement is binding in honour only.” The court decided that the words used meant the agreement wasn’t intended to create legal relations. There was no contract and Mr Jones couldn’t enforce his win

Answer 26

A Malaysian comoant acquired a loan from UK bankers to fund its subsidiary company in London. The company wrote the bank a comfortable letter asserting that its policy is to ensure the subsidiary company is in a positions to meet its liabilities to the bank. The bank granted a £10 million loan. When the subsidiary company went into liquidation, the bankers relied upon the letter to order the company an repay the loan. Company claimed the letters didn’t create legal obligations. The court decided the letter wasn’t to create legal relations so couldn’t be enforced by the bank

Answer 27

Consideration is what one party gives in exchange for the other party’s performance

Answer 28

- consideration must be sufficient but need not be adequate - consideration myself not be in the past - consideration isn’t allowed if already performing an existing duty

Answer 29

“Sufficient” means that what is promised must be real and of some value in the eyes of the law

Answer 30

Before he died, a man said that his wife should stay in the house after he died. The executors made an agreement she could live there is she paid £1 rent a year, then they tried to evict her. The court held that the £1 payment was good consideration

Answer 31

Nestlé offered music records in return for used sweet wrappers as part of a sales promotion. The court decided that the wrappers were sufficient consideration, even though it wasn’t of the same value of the records.

Answer 32

A son owed his father money. The father promised not to enforce the debt if the son promised not to complain about his fathers will. The father later died and the executors of his will sued for the money. The court decided the promise wasn’t sufficient and was too vague

Answer 33

Consideration must not be in the past, it mustn’t be something that was already done when the agreement is made

Answer 34

A widow had left a house which in her death should be inherited by her 5 kids. One son and his wife paid for repairs to the house. When these were finished, the other sons agreed to contribute towards the repairs. The courts decided it was past consideration and not a valid contract

Answer 35

If one party acted at the others request and it was understood all along that payment would be made later, then past consideration will be valid

Answer 36

B had been sentenced to death. He asked L to speak to the King and seek a pardon for murder. L succeeded and B then promised to pay him £100. B never paid. The court decided that although the promise to pay came after L had performed the service, there was good consideration so B had to pay

Answer 37

C worked on obtaining certain legal rights for a company. The company later promised him a 1/3 share in those rights. The company then refused to hand over the share of the patents. The court decided that C was entitled to the share as it was implied that when he worked on the patents he would receive some payment

Answer 38

The general rule is that if you promise to do something that you already have to do, this isn’t good consideration because you are obliged to do it anyway

Answer 39

During a voyage, 2 out of 12 sailors deserted their ship. The captain promised those who remained extra wages. When they arrived back in England, the captain refused to pay the extra money. No consideration was given as the sailors were under a contractual duty

Answer 40

A police officer was ordered to attend court and give evidence at D’s trial. D promised to pay the police officer to make sure he did attend. There was no consideration in the agreement as the police officer was already under a public duty to give evidence

Answer 41

- if you do more than your existing duty, or provide some extra practical benefit to the promisor, then this can be good consideration - a promise to perform a contractual duty owed to a 3rd party is good consideration

Answer 42

Over half of the crew. (19 out of 36) left ship. Extra wages to those who remained. The court decided the sailors were owed the extra wages as they went beyond their contractual duty

Answer 43

During a strike, the owner of a coal mine asked for extra protection from the police. For this there would be a payment. When the strike was over, the owner refused to pay, arguing the police were in any case bound to protect his pit. The police had gone beyond their public duty and there was consideration

Answer 44

R hired W to do carpentry work on some flats. W were in financial difficulties, they priced their work too low and couldn’t finish it. R offered more money ti get the work done by the original deadline and avoid penalties. When W completed the work, R refused to pay. Court decided W was owed the money and R had gained a benefit

Answer 45

S made a contract to sell coal to B, but deliver to P. P promised she would unload the coal. P failed to do so. When S started legal action, P argued S hasn’t provided any consideration in return for the promise to unload. The court disagreed and held that performing an existing contractual duty owed to a 3rd party to the contract can amount to good consideration

Answer 46

The doctrine of privity means that generally only those whose are parties to a contract are bound by it and can benefit from it. Anyone outside the contract cannot claim or be claimed against under it

Answer 47

2 fathers whose son and daughter were engaged made an agreement to give their children money as a wedding present. One father died and the executors of the will refused to pay the money. No consideration as they weren’t part of the contract between the fathers

Answer 48

An uncle made a contract to sell his business to his nephew in trough for an annual allowance to be paid to himself and, after his death, wife. When the uncle died, the nephew refused to pay the widow. The court decided that a party can only sue to recover their losses. The widow couldn’t claim herself as she wasn’t a party to the contract

Answer 49

Contracts (Rights if Third Parties) Act 1999

Answer 50

The act allows a person who isn’t a party to a contract to enforce a term of that contract provided: s.1 (1) (a) - the contract expressly states that the party may do so s.1 (1) (b) - the term clearly confers a benefit on the third party

Answer 51

The third party must be expressly identified in the contract by name, or described as a member of a particular class

Answer 52

S.1 (1) (b) doesn’t apply if it appears the parties didn’t intend the term to be enforceable by a third party

Answer 53

A contract between Nisshin and various clients included a requirement to pay commission to Cleaves, the broker who had arranged each contract. The contract didn’t prove the 3rd party could enforce a contract, so s.1 (1) (a) didn’t apply. However, the contract didn’t confer a benefit on the third party, so the question for court was whether, on a particular construction of the contract, the parties intended the term to be enforced by the 3rd party. Cleaves was entitled to rely on the act and enforce the commission clause

Answer 54

Where a 3rd party has a right to enforce the contract under s.1, the original parties to the contract cannot vary or remove the 3rd party’s rights without their consent unless there is an express term in the contract to this effect

Answer 55

The courts have recognised special categories of cases where a contracting party buys something on behalf of others. In certain cases, the contracting party may be able to enforce contractual rights for the benefit of those who suffer from detective performance of the contract

Answer 56

Mr Jackson bought himself and his family a holiday to Sri Lanka from Horizon Holidays. The holiday was a disaster, but Horizon refused to pay compensation for the rest of his family. The court decided that Mr Jackson could recover compensation for his loss and that of his family as they had all suffered from the experience

Answer 57

A property developer contracted with asbestos removal company before transferring ownership of the site to another. It was later discovered the work had been done badly. The new owner was forced to incur significant expense remedying the defects. The court decided the original property developer could sue the asbestos removal company

Answer 58

In land law, if a purchaser of land promises the seller in a contract that they will not do something in the land, then this called a restrictive covenant. This promise “runs with the land” meaning all subsequent purchasers of the land are bound by that promise even though they aren’t parties to the original contract

Answer 59

A house was sold with a restrictive covenant that the gardens weren’t to be built on. The house was later sold to another who intended to build on the gardens. Because the covenant ran with the land, the original seller could enforce it with the new purchaser

Answer 60

A court may be able to avoid the strict rule or privity by finding a second contract which runs alongside the main contract. It is made between the same parties as the main contract or between one of the parties and third party

Answer 61

A pier company hired at firm of painters to paint their pier. Detel products represented to the company that their paint would last 7 years. On this basis the company instructed the painters to buy and use Detel paint. When the paint lasted only 3 months, the pier company found a collateral contract between the pier and Detel

Answer 62

When one person, the agent, is authorised to make a contract on behalf of another person, the principal.

Answer 63

A misrepresentation is a false statement of fact, made before or at the time of the contract, which induces the other party to enter into the contract

Answer 64

1. A false statement 2. Of fact 3. Which induces the other party to enter into the contract

Answer 65

The false statement may be in any form, spoken, written or by conduct. It could be anything that would influence another’s decision to contract

Answer 66

Aprilia had agreed to sponsor the tour of Spice Girls. Before the contract was signed, the group filmed a commercial and participated in other promotional material, knowing one of the members was about to leave. Their conduct was misrepresentation

Answer 67

Silence doesn’t amount to a misrepresentation

Answer 68

A woman applied for a job of governess. She wasn’t asked and she didn’t state that she was divorced. The court decided that there was no misrepresentation as she was under no duty to disclose her marital status and she hadn’t been asked about it

Answer 69

- change of circumstances - the making of a half truth - contracts of “utmost good faith” - omissions in the consumer context

Answer 70

If the statement was true when it was made but, due to a change of circumstances, has become false by the time the contract is entered representors failure to disclose the change of circumstances is a misrepresentation

Answer 71

D was a doctor who was selling his medical practice. During negotiations, D told a prospective buyer that its income was £2,000/ year, which was true at the time. Subsequently, D fell ill and the income from the practice fell. By the time the contract was signed, 4 months later, there was almost no income. The court held that the failure of the seller to tell the buyer what had happened amounted to a misrepresentation

Answer 72

If what is said is true, but misleading as it fails to present the whole picture, there may be a misrepresentation

Answer 73

Land was for sale. The seller told the prospective buyer that farms in the land were let to tenants, but didn’t mention both tenants had given notice to quit. Omitting this fact presented such a distorted picture of the true situations that the court held there had been a misrepresentation

Answer 74

An applicant for a consumer insurance policy has a statutory duty to take reasonable care not to make a misrepresentation. The consumer must answer honestly and reasonably to questions asked

Answer 75

A misleading omission occurs where a trader misses out key info that the consumer might need to make an informed decision about the purchase of good or services

Answer 76

- omits material info that the average consumer needs, according to the context, to make an informed transactional decision - hides or provides material into info in an unclear, unintelligible, ambiguous or untimely manner - fails to identify that a transaction has a profit making motive

Answer 77

The false statement must be a false statement of material fact, as opposed to a statement of belief or opinion

Answer 78

The owner of land told a prospective buyer that, in his opinion, if properly worked, the land would support 2000 sheep. However, to the knowledge of purchaser, the owner hadn’t worked the land him self as a sheep farmer and the statement was no more than an honest opinion. No misrepresentation

Answer 79

- where the maker is an expert, it is assumed they know of facts to justify their opinion - if a person making a statement doesn’t honestly believe their own opinion, it is regarded as a statement of fact, rather than opinion

Answer 80

An Esso representative, who had many years experience, made an estimate that a garage being built would sell 200,000 gallons of fuel per year. This forecast was intended to be relied upon by a prospective tenant and therefore amounted to a statement of fact that reasonable care and skill had been used in its preparation

Answer 81

A statement of future intention isn’t generally a fact, because fact related to a past event or something in existence. However, a statement of intention can become a statement of fact if the maker of the statement has no intention of carrying it out, because they are misrepresenting the fact that they possess the intention

Answer 82

A company sought to raise money and stated in a prospectus that they intended to use funds raised to extend the business. In reality, they intended all along to use the money to pay off existing debts. Since the company never intended to use the money as suggested, this amounted to a misrepresentation

Answer 83

A seller of property described it as being let to a “most desirable tenant.” In fact, as the seller knew, the tenant was behind on rent and on the verge of bankruptcy. The statement that the tenant was “most desirable” wasn’t one of opinion but of fact. Since the seller knew this was false, he had misrepresented the fact that he held that opinion

Answer 84

The false statement must induce the other party to enter into the contact. This means it must actually be relied to on, though it need not be the only reason for entering the contract

Answer 85

A made exaggerated statements about the earning capacity of his mine to S, a prospective buyer. S didn’t believe S do use their own surveyors check the figures, but they wrongly reported they were correct. S couldn’t claim misrepresentation since they had relied on their surveyors report and not A’s statements

Answer 86

The court of appeal held that it doesn’t matter if the victim could have discovered the truth by taking reasonable depts or it was unreasonable to rely on the untrue statement. The fact that the untrue statement was relied upon is enough to make it amount to a misrepresentation

Answer 87

The claimants had reservations about the accounts of a company but proceeded with a takeover in order to obtain services of 2 of the other company’s directors. Although the accounts had been negligently prepared, there could be no claim of misrepresentation since the purpose of taking over the company was to secure the services of the directors and the accounts weren’t material to the decision to contract

Answer 88

If a statement was made after the agreement was reached, then it cannot be actionable as a misrepresentation because it had no effect in the formation of the contract

Answer 89

After a deal was struck for the sale of a house, the seller said that it was “… sound and free from vice.” In fact the horse was unruly but the buyer couldn’t claim misrepresentation since the promise was made after the agreement

Answer 90

- fraudulent - negligent - innocent

Answer 91

- most serious type of misrepresentation - the claimant must prove that the false statement was made “knowingly, without belief in its truth, or recklessly, without caring whether it is true or false”

Answer 92

An innocent party who suffers loss as a result of a fraudulent misrepresentation may, in addition to the equitable remedy of rescission, sue for damages to in the tort if deceit. The aim is to restore the innocent party into the position they would have been in had the representation not been made

Answer 93

C had been induced to buy shares in a company as a result of a fraudulent misrepresentation by D. Later it was discovered that D had itself.p been victims of a separate massive fraud by a third party, causing the value of the shares to plummet. The court allowed C to recover the difference between the price

Answer 94

a negligent misrepresentation isn’t a deliberate lie, but one where a person failed to take reasonable care and skill to check the accuracy of the statement and so failed to appreciate it was false - rescission and damages

Answer 95

- creates statutory liability for negligent misrepresentation - needs to be misrepresentation which results in a contract and the victim suffers loss - once victim proved there was misrepresentation, the burden of proof shifts to person who made statements to show reasonable grounds for believing the statement to be true

Answer 96

D, owner of a ship, misrepresented its carrying capacity, saying it was higher. D got his info from official register which was used as accurate source of info. The correct info was on the ship’s registration docs, on file at D’s head office. The CoA held the ships owners were liable to pay damages under s.2 (1)

Answer 97

an innocent misrepresentation is one which is made entirely without fault - rescission or damages

Answer 98

gives the court discretion to award damages as an alternative to rescission where the court believes that rescission would be too drastic a remedy

Answer 99

- equitable remedy - rescission sets aside the contract and returns the parties to the positions they were in before the contract was made

Answer 100

- third party now has some rights in property - affirmation of the contract has taken place - impossible to restore the parties to their original positions - lapse of time has occurred

Answer 101

lorry was falsely stated to be in good condition. Buyer discovered this on 1st journey, but persevered and used the lorry several more times before claiming rescission. C lost right to rescind the contract by subsequent journeys

Answer 102

Contract concerned a mine and by the time C asked form rescission, it had “worked out”- nothing left to mine. Impossible to restore parties to their original positions

Answer 103

C bought a painting which seller represented was by artist constable. When he tried to sell it 5 years later, her discovered seller had been wrong. Rescission wasn’t allowed as 5 years was too long a lapse of time

Answer 104

duress exists where there is some illegitimate pressure of threat which induces one party to enter the contract because they have no real practical choice other than to agree

Answer 105

- illegitimate pressure - the pressure was a significant cause inducing the claimant to enter the contact - the claimant protested at the time or shortly after the contract was made

Answer 106

in a claim for economic duress, there must be pressure or threat that must be illegitimate. Ordinary commercial pressure will not amount to duress

Answer 107

the court of appeal had no difficulty in concluding that there as no duress since the promised extra payment came from the main contractor. No evidence of pressure or threat

Answer 108

- whether there has been an actual or threatened breach of contract - whether there’s party exerting the pressure has acted in good or bad faith - whether the claimant had any realistic choice other than to agree - whether the claimant protested at the time - the size or bargaining powers of the parties

Answer 109

Kafco hired atlas to deliver goods to Woolworth under a contract. Just before Christmas, Atlas demanded a higher charge and threatened to stop deliveries unless Kafco agreed. Kafco reluctantly agreed but later to refused to pay the extra. The court held that the agreement had been obtained by duress so it wasn’t legally binding

Answer 110

A trade union threatened to block a ship and prevent it from leaving port unless the ship owners made changes to pay conditions and a payment to the trade union. The ship owners agreed so the ship could leave port. The court decided this had been a result of economic duress

Answer 111

it is unlikely that lawful threats will give rise to a claim of economic duress

Answer 112

CTN bought cigarettes from D who mistakenly delivered them to the wrong warehouse. The parties agreed D would transfer them, but they were stolen before it. D invoiced CTn for the stolen goods and CTN paid after threats from D. CTN claimed it was made under duress. There was no duress: - D acted in good faith believing mindy was owed - the lawful nature of the threats - the arms length commercial dealings between 2 trading companies

Answer 113

it may be possible for lawful actions to be considered illegitimate where the effect is to manoeuvre the claimant into a position of weakness forcing the claimant to waive a claim

Answer 114

C hired a ship from D, who then breached the contract. D promised a replacement ship and compensation for C's losses. C relied on this promise and waited knowing they were under pressure to fulfill a separate contract. D then refused to provide the replacement ship unless C agreed to waive all claims arising from the first breach. C reluctantly agreed but later sued, claiming economic duress. D's conduct involved manoeuvring C into a position where C had no option but to accept the new terms and waive the claim

Answer 115

if there was no reasonable alternative other than to agree, that may be strong evidence in support of a conclusion that the claimant was in fact influences by the threat

Answer 116

economic duress makes a contract voidable, allowing the innocent party the option of rescission. however, this right can be lost through lapse of time. it follows the innocent party must ensure it takes action to protest at the time or shortly after the contract has been entered

Answer 117

A contract was entered to build a ship for a fixed price in US dollars. The sellers demanded a 10% price increase due to a drop in the dollar exchange rate. the buyers protested but agreed to pay the increase to avoid delaying the ship's completion as they were already in a different agreement. 8 months after delivery, the buyers sued to reclaim the extra payment, claiming it was made under duress. the judge held the promise was made under duress but the long delay amounted to a valid affirmation and were no longer entitled

Answer 118

- these parties have agreed to them when the contract was negotiated. the parties are aware of these express terms may be: - verbal statements made by one party to another - written or contained in a signed doc - included in a notice that was available to be seen

Answer 119

- these are terms added into the contract by law. parties might not be aware terms may be implied by: - statute, e.g. the consumer rights act 2015 and/or - the courts

Answer 120

the parties may make verbal statements to induce the party to enter the contract. if false, it is a misrepresentation. only statements which are sufficiently significant will be incorporated into the contract as a term

Answer 121

- the importance of the statement - special knowledge or skill of the person making the statement - the time between making the statement and contract

Answer 122

the more importance attached to the statement by either party, the more likely it is to be a term of the contract

Answer 123

a buyer of hops asked whether they had been treated with sulphur, adding if they had, he wouldn't be interested in buying them. he was told no when in fact they had been so treated. the court decided that it was term of the contract

Answer 124

where the statement is made by someone with special knowledge or skill, this is more likely to be seen as a term than a statement made by an amateur with no special expertise on the matter

Answer 125

the buyers said they were looking for a "well vetted" bentley car. the settlers, a car dealer, stated that a car had a new engine and gear box and had only done 20,000 miles on them. in fact, the car had done over 100,000 miles. the court decided it was a term of the contract

Answer 126

a private seller wanted to trade in his old car and buy a new one. he represented his car to be a 1948 morris, which was the year on the car's registration documents. in fact, it was a 1939 version of the same model. the court decided that the statement of the car's age wasn't a term of the contract

Answer 127

sometimes the court may assess that the time lapse between the statement made in the negotiations and the formation of a written contract is too good to support a claim that the statement is incorporated in the contract as a term

Answer 128

a motorcycle was stated to be a 1942 model, in fact it was made in 1930. a written contract drawn up a week later didn't mention the bike's age. the court decided this wasn't a term de to the lapse of time

Answer 129

where there is a written contract, it is presumed that this contained everything that the parties wanted to include as a term of the contract. this presumption is known as the parol evidence rule

Answer 130

if a party signs a written document containing contractual terms, then he or she will be bound by those terms, even if they haven't read them

Answer 131

the document signed must be of a contractual nature

Answer 132

an agreement for the hire of a machine and driver was made over the phone. 2 weeks later the hirer was required to sign a timesheet to record how many house the driver had worked. the timesheet wasn't a contractual doc and so signing it could not incorporate the terms into the contract

Answer 133

a written term will be part of the contract if the doc is contractual and the other party has been given reasonable notice of the term's existence before or at the time of contracting

Answer 134

P paid to leave a bag at a train station on luggage office. she was handed a ticket. on the ticket was "see back"; on back was a clause limiting train's company's liability to £10 if bag was lost. p's bag was lost and its contents were worth more than £10. court held that a party could be deemed to have had reasonable notice if they knew of the clause, or if reasonable steps were taken

Answer 135

must be given before or at the time of contracting

Answer 136

T entered a car park by taking a ticket from a machine, which triggered the raising of an automatic barrier. the ticket said it was "issued subject to conditions displayed on the premises." a notice inside the car park excluded liability for "injury to customers howsoever caused." court held the notice wasn't a term of the contract because it was communicated too late

Answer 137

interfoto delivered 47 photographic transparencies to stiletto in a jiffy bag. inside the bag were standard terms and conditions. stiletto never opened the bag and didn't read the terms. condition 2 stated a £5 per day holding fee for each day past 14 days. after a month, interfoto invoiced stiletto for £3,783 based on this fee after a month. court decided it was unusual and hadn't been brought to the other's attention. this hadn't happened so fee wasn't enforceable

Answer 138

parl has deemed it necessary to imply certain terms into all contracts for the sale and supply of goods and services

Answer 139

applies to contracts between "consumers" and "traders" only

Answer 140

an individual acting for purposes that are wholly or mainly outside that individuals trade, business, craft or profession

Answer 141

a person acting for purposes relating to their trade

Answer 142

goods to be of satisfactory quality

Answer 143

goods meet the standard that a reasonable person would fine satisfactory, taking into account price, description etc

Answer 144

every contract to supply goods is treated as including a term that the quality of goods is satisfactory

Answer 145

the quality of goods includes their state and condition, as well as: (a) fitness for all usual purposes; (b) appearance and finish; (c) freedom from minor defects; (d) safety; (e) durability

Answer 146

where defects have been drawn to the buyers attention they will have no claim

Answer 147

if a consumer makes known to any trader the purpose they're buying the goods for, then the contract includes the goods are reasonably fit for that purpose however, if buyer didnt rely on trader when buying, s.10 doesnt apply

Answer 148

the goods must match the description given

Answer 149

short term to reject if consumer wants to reject item within 30 days and end contract

Answer 150

right to repair or replacement- consumers can repair or replace any faulty goods within a reasonable time

Answer 151

right to price reduction or final right to reject- only available if an attempt at repair or replacement has been unsuccessful. reject within 6 months

Answer 152

prevents trader from excluding or restricting any of the statutory rights and remedies relating to goods

Answer 153

CRA requires service provided must be performed with reasonable care and skill

Answer 154

the consumer must pay a reasonable price for the service

Answer 155

if contract doesnt state what time the service to be performed, it must be within reasonable time

Answer 156

anything said or written by the trader to consumer regarding the trader or service will be an implied term of the contract

Answer 157

consumer may be entitled to ask that the service is properly performed, if not done so

Answer 158

consumer may also be able to request a reduction in price

Answer 159

prevents a trader from excluding or restricting any of the statutory rights and remedies relating to services

Answer 160

m&s rented commercial properties from bnp paribas. m&s gave notice of the termination and requested a repayment of the rent. this wasnt written in the lease agreement. sc decided m&s wasnt entitled to a repayment as it wasnt in the contract

Answer 161

the court will imply a term into the contract to make it work, provided this was the intention of the parties

Answer 162

ds owned a wharf on the river thames. they agreed to dock a ship and unload cargo. both parties were aware the ship would settle on the riverbed at low tide. the ship was damaged when it grounded on hard rock. ds argued there was no terms in the contract which guaranteed the condition of the riverbed. courts disagreed and implied a term

Answer 163

test set out in shirlaw v southern foundries: a court will imply a term where it was so obvious to both parties that it goes without saying

Answer 164

shell a contract to supply petrol to lostock, who in return agreed to buy only from shell. shell later supplied petrol to other garages at lower prices as part of a price war. lostock argues there was a term in the contract that shell wouldnt abnormally discriminate against lostock. this argument failed as shell would never have agreed to a term

Answer 165

where the parties have dealt with one another before on standard terms and conditions, a court may be prepared to imply terms where it is clear that both sides would have those terms in mind

Answer 166

both companies ran plant hire businesses. they had dealt with each other before using a standard form. ipswich hired a crane from british crane via phone. a printed form followed, stating the hirer was liable for recovery expenses. the crane sank in marshy ground before the form was signed. the terms on the form were incorporated into the contract and previous dealings had included this term

Answer 167

Terms need to be categorised so that the court can work out how important the term is and what the effect will be if the term is breached courts classified terms as conditions or warranties

Answer 168

Conditions are vitally important terms that are central to the contract. A condition is said to go to the root of the contract and if breached would destroy the purpose of the contract

Answer 169

An opera singer made a contract to sing in a production for a number of weeks. She failed to turn up for the first 6 nights and was replaced. The court decided that this was a condition of the contract. Its breach gave the theatre owners the right to end the contract and claim damages

Answer 170

Less important terms of a contract only damaged can be claimed for a breach of a warranty, the contract isn’t ended as the main purpose of the contract can be performed

Answer 171

An opera singer agreed to attend 6 rehearsal days and to appear in a production. He missed 2 rehearsals. The theatre owners tried to end his contract. The court decided the terms to attend rehearsals was only a warranty

Answer 172

Terms which can be broken with either important or trivial consequences, depending on the nature of the breach. If the effects of breach are serious, the term will act as a condition; if they are minor it acts as a warranty

Answer 173

D hired a ship from C for 2 years. A term in the contract provided the ship seaworthy. There were problems with the ships engine. Because of the poor condition, 20 weeks of the hire were lost. D decided to terminate the contract. C claimed D was entitled to end their contract as breach was a warranty. The court decided if a term isn’t clearly a condition, then it will be an inominate term. The effects of the breach were not sufficient enough to justify termination.

Answer 174

A contract stated that it was “of the essence” that hires of computer equipment should pay hire fees on time. The court decided that although this terms would not normally be a condition the parties were free to classify the term as a condition if they wished.

Answer 175

The parties made a contract in which one of them agreed to visit certain motor manufacturers around the UK at least once a week. The written contract described this promise as a condition of the agreement. The court decided that the parties own classification of a term as a condition wasn’t conclusive

Answer 176

Exclusion clauses are terms in a contract that attempt to exclude or restrict liability for a breach of contract. They may also attempt to exclude liability in other areas of law

Answer 177

1. Exclusion clause must be incorporated as a term of the contract 2. The wording of the exclusion clause must cover the alleged breach of contract 3. The exclusion clause must be allowed under statute law

Answer 178

Exclusion clauses must be incorporated - by signing a contractual written document (L’Estrange v Graucob) - by giving reasonable notice of the existence of the term before or at the time of the contract (Interfoto) - implied by a previous course of dealings (British Crane Hire)

Answer 179

O booked into a hotel room. When some of her belongings were stolen from her room, the hotel tired to rely on a notice excluding liability which was on the back of her hotel room door. The court decided the notice was not incorporated into the contract since it could not have been knowing by O.

Answer 180

Mrs C took her wedding dress to be cleaned and asked to sign a doc that exempted the cleaners from liability. Before signing, she asked what it was. She was told it only referred to the fact that the cleaners would accept no liability for beads or sequins on the dress. When the dress returned, it had a massive stain on it. The cleaners couldn’t rely on the exclusion clause because of verbal assurances made to Mrs C.

Answer 181

Once it is established that an exclusion clause has been incorporated into a contract, the courts will then check to see whether the clause actually covers the breach that has occurred

Answer 182

In a contract to provide security services for a factory, a clause in the contract said that securior would “under no circumstance be responsible for any injurious act by any employee?… unless such act could have been foreseen and avoided by.” A security guard started a fire on the premises and factor burnt down. The court held that, on its natural and ordinary meaning, the exclusion clause did cover the damage

Answer 183

If there is any doubt about the meaning or scope of an exclusion clause, the ambiguity should be resolved against the party seeking to rely on it. It is the other party who is given the benefit of the doubt

Answer 184

A garage made a contract with a car manufacturer to buy its new cars. The contract contained a clause excluding “all conditions, warranties and liabilities implied by common law or statute.” One of the cars was turned out to be used, not new. The court held that exclusion clause would not protect the car manufacturer since it excluded implied terms

Answer 185

- Consumer Rights Act 2015- applies only to contracts between a trader and a consumer. It protects consumers against all unfair contract terms - Unfair Contract Terms Act 1977- applies to contracts between businesses only. Provides some protection from exclusion clauses only

Answer 186

1. An unfair term of a consumer contract is not binding on consumer 2. An unfair consumer notice is not binding on the consumer 4. A term is unfair it, contrary to the requirement of good faith, it causes a significant imbalance in the parties rights and obligations to the detriment of the consumer

Answer 187

The effect of an unfair contract term on the rest of the contract is that the contract continues. That is, the contract will remain in force without the term which has been identified as unfair

Answer 188

A trader must ensure that a written term of a consumer contract, or a consumer notice in writing is transparent

Answer 189

If there is any doubt about the meaning of a written term, the interpretation which is most favourable to the consumer shall prevail

Answer 190

A trader cannot exclude or restrict liability for any of the statutory rights or remedies relating to the sale of goods

Answer 191

Implied terms relating to the provision of services cannot be excluded

Answer 192

A trader cannot by a term of a consumer contract or by a consumer notice exclude or restrict liability for death or personal injury arising from negligence

Answer 193

1. A business cannot exclude or restrict liability for death of personal injury caused by their negligence 2. In the case of other loss or damage, a business cannot exclude or restrict liability for negligence expect in so far as it is reasonable to do so

Answer 194

A business cannot, by reference to the exclusion clause, exclude liability for breach of contract unless it is reasonable

Answer 195

1. A term cannot protect sellers of goods if they do not have ownership of them 1A. The implied terms in the sale of goods act 1979 as to conformity with description, satisfactory quality, fitness for purpose cannot be excluded or limited unless shown to be reasonable

Answer 196

Whether an exclusion clause is fair and reasonable in the light of what was known to the parties at the time of the contract being made: s.11

Answer 197

- strength of bargaining position of the parties - any inducements to enter the contract - knowledge of the particular term or standard industry practice - whether the risk could more easily have been covered by insurance

Answer 198

C was a farmer who bought “winter cabbage seed” from D at a cost of £200. It turned out to be spring cabbage seed, which failed to grow properly. C sought compensation of £60,000, the value of the crop which he had lost. The contract limited liability to replacement of the goods or a refund in price. The court decided the cause wasn’t reasonable: - breach arose from seller’s negligence - seller could have more easily insured against crop failure - unequal bargaining power favoured the seller

Answer 199

C bought software from D. The system failed to perform. In D’s standard terms there were a clause limiting liability to the price of the goods supplied. The court said it was a reasonable term since the parties were equal bargaining power and the limitation clause was subject to negotiation when the contract was made

Answer 200

Bush was a surveyor who inspected and valued a house. Bush excluded any liability tot the buyer, Mrs Smith. His valuation had said there were no defects with the property, but the chimney later collapsed, causing major damage. The court held that the exclusion clause was unreasonable as Mrs Smith had relied on the report to buy the house. It was more reasonable that a professional surveyor bear the risk of liability.

Answer 201

A contract will be discharged when it had been performed, or carried out. After it has been performed, the party doing the performing need not do anything else

Answer 202

The rule is that performance of the contract must be complete

Answer 203

C was a sailor who died during the voyage. C’s wife sued for unpaid wages but her claim was unsuccessful. The court held that the contract required complete performance of the voyage and as C performance was incomplete, she could claim nothing

Answer 204

If a party has only partly performed the contract, the contract will be discharged only if the other party chooses to accept it

Answer 205

H was a builder who left a house half finished. S had to complete the building himself. H claimed S had accepted part performance by completing the work himself. The court rejected this argument. S could claim damages from H because SS had no real alternative but to complete the building

Answer 206

If a party has substantially completed what he or she was supposed to do under a contract. This means that performing the rest need not be insisted on

Answer 207

C, a decorator was hired to refurbish a flat for £750. D moved in and paid £400 by instalments, but then refused to pay the rent. The court agreed there were problems with the work done , but the cost of putting this right would only be £56. The court held that the contract had been substantially performed

Answer 208

A builder agreed to install a central heating system for £560. When completed it gave off fumes and didn’t work properly. The court decided the builder wasn’t entitled to be paid, as there had no substantial performance

Answer 209

If a contract can be divided into different parts which are separate and can be separately performed, then the strict rule on complete performance of the whole contract need not apply

Answer 210

A ship owner agreed to carry cargo at an agreed rate per ton, but he carried only part of the cargo. He was entitled to be paid for the part of the cargo he had carried at the agreed price per ton, but was liable in damages for breach of control for not carrying the whole cargo

Answer 211

If one party prevents the other from completing the contract, then the innocent party can claim to be paid for the work done

Answer 212

A publisher hired an author to write one of a series of books. When the publisher decided to abandon the whole series, the author was prevented from completing the work through no fault of his own. He was entitled to recover a fee for his wasted work

Answer 213

S sold linseed oil to be delivered “by the end of March.” S delivered at 8:30pm on 31 March which was a Saturday. M refused to accept it. S was entitled to damaged for non-acceptance and could rate his obligations as at an end

Answer 214

In many contracts it is useful to insert a term stipulating time. This is particularly importance when an item is needed at a particular time

Answer 215

- the parties have expressly stated in the contract that performance of the contract is time critical - in the circumstances, time for completion of the contract is critical or - one party had failed to perform on time and the other had insisted on a new date for completion of the contract

Answer 216

In a contract for the sale of a flat, the time for completion of the contract had been specified as 5pm ad the time was expressly stated to be of the essence. The buyer delivered the purchase price at 5:10pm and the seller repudiated the contract. The court decided it was a condition of the contract

Answer 217

A buyer of a rolls Royce contracted for some body work to be done on the car by a fixed date and the work wasn’t completed. The buyer kept pushing for delivery and eventually gave notice that unless delivery of the car with completed body was ready within 4 weeks, he would cancel the contract. The car wasn’t delivered within the period of 4 weeks. When the car was completed, he refused to pay. The court held the buyer was entitled to cancel

Answer 218

The doctrine of frustration covers the position where a contract comes to an end because, through no fault of the parties, it can no longer be performed

Answer 219

C agreed to rent a music hall from T for a series of concerts. 6 days before the planned date for the first concert, the building burnt to the ground, making it impossible for the concerts to go ahead. C sued for breach arguing the owners failed to provide. The claim failed because performance by the owners had become impossible

Answer 220

- destruction of subject matter (Taylor v Caldwell) - death or unavailability of either party (Robinson v Davison) - specific method of performance becomes impossible (Nickoll and Knight v Ashton Eldridge)

Answer 221

A contract may be frustrated as the result of a change in the law that makes the contract illegal to perform in the matter anticipated

Answer 222

The outbreak of war frustrated a contract for the shipping of machinery to a port in Poland

Answer 223

Frustration may occur where further performance, though technically possible, would become something radically different from that originally envisaged by both parties

Answer 224

D agreed to hire a room from C to view the coronation procession of Edward VII. The coronation was subsequently cancelled due to the King’s illness and surgery. The court held that the contract of hire was frustrated

Answer 225

D hired a steamboat from c to take passengers out to see the naval review by the king and for a days cruise around the fleet. When the coronation was cancelled, so was the naval review. The court said the contact wasn’t frustrated

Answer 226

If the potentially frustrating event is dealt with by an express term of the contract (force majeure clause) then the impact of this event will be determined by applying the parties express term

Answer 227

A contract will not be frustrated simply because one party suffers hardship or inconvenience, or the contract becomes less profitable to perform

Answer 228

C’s agreed to build houses for d over a period of 8 months. There was a shortage of workers and materials at this time and the cost of building the houses turned out to be a lot more expensive that c had planned. The court said this was not a reason for the contract to be frustrated

Answer 229

A lease of a warehouse for 10 years was not frustrated when the local authority closed the street for 20 months. The interruption was only 20 months out of 10 years and there were still 3 years to run after the interruption ceased

Answer 230

The contract wont be frustrated if the event was in the contemplation of the parties at the time the contract was made

Answer 231

C’s agreed to buy a property from d for £1.7m for redevelopment. C asked whether it was designated as a building of special historical interest and were told not to d’s knowledge. The day after the contract was signed the department for the environment listed the property. This resulted in the value of the property dropping by £1.5m. The court said the contract had not been frustrated by the decision to list the property

Answer 232

If the frustrating event is brought about by the fault of one of the parties, that party may be in breach and frustration wont apply

Answer 233

D owned 2 ships, ss1 and ss2. C contracted to have d use either vessel to move an oil rig. D chose ss2 and sank, d claimed frustration. The court decided the contract had not been frustrated

Answer 234

Once a court holds that a contract is frustrated, it is automatically discharged from the movement at which the frustrating event occurred

Answer 235

Sets out rules on how frustrated contracts are settled

Answer 236

Money paid is recoverable and money already due under the contract is not payable

Answer 237

A rock concert had to be cancelled due to safety concerns about the stadium. C had paid $412,000 to d as a deposit and were due to pay another $362,000. C had also incurred expenses of $450,000 prep for concert. While d had expenses of $50,000. Applying s.1 (2) judge held that c was entitled to recover the advance payment of $412,000

Answer 238

Where one party gains a valuable benefit before the time of frustration, then the court can order that party to pay a “just sum” in return for it

Answer 239

H was given permission by the Libyan gov to look for oil in the desert. H hired bp to carry out the exploration and they agreed they would share the profits. BP spent considerable sums of money in exploration and found oil. However, shortly afterwards, the contract between H and BP was frustrated as the gov claimed ownership of oil. The gov paid H off and BP was left with nothing. Applying s.1 (3) the court decided BP was entitled to a “just sum”

Answer 240

Where one party fails to comply with a term under the contract, either express or implied, it is said to be in breach of that contract

Answer 241

Gives the innocent party the option to treat the contract as repudiated. Discharge of the contract isn’t automatic

Answer 242

An actual breach of contract may occur when one party performs defectively, differently from the agreement, or not at all

Answer 243

An anticipatory breach of contract will occur where one party indicates before the date of performance that they wont be performing the contact as agreed

Answer 244

H was hired as a tour guide for the holiday season. Two months before he was due to start work, he was told he was no longer needed. H could choose to sue for breach of contract immediately, even though the date of performance hadn’t arrived

Answer 245

B hired As ship and agreed to load his cargo onto his ship within 45 days. B later told A he had no cargo and advised him to take the ship away. This was an anticipatory breach and A could have sued for breach of contract immediately. Instead A kept the ship available any the port, in the hope that B would eventually fulfil the contract. Before the 45 days were up, the Crimean war broke out between England and Russia, so the performance became illegal and the contract was frustrated

Answer 246

Not every breach of contract will give rise to the right to terminate the contract. To discharge the parties from the obligations which they have promised to perform is a serious matter and will only occur if the breach is of an important obligation and not of a minor one

Answer 247

The innocent party will have the option to: - accept the breach as terminating the contract (in which parties future obligations will be discharged) - affirm the contract (contract remains in force)

Answer 248

If the innocent party wishes to terminate the contract it must communicate its choice to the other party in a clear and unequivocal manner

Answer 249

N silence and failure to carry out any more obligations under a shipping contract demonstrated that it intended to treat the contract as at an end

Answer 250

Every breach of contract will give rise to a right to claim damages. It is an award of money that aims to compensate the innocent party for financial losses they have suffered as a result of the breach

Answer 251

Damages in contract law traditionally only compensate for financial loss

Answer 252

C was wrongly sacked from his past as manager for alleged dishonesty. He claimed that the manner of his dismissal had been harsh and humiliating. The court held that he cold recover damages for loss of his salary and commission, but not for the injury to his feelings

Answer 253

Where a major object of the contract is pleasure, relaxation or peace of mind, loss of amenity can be compensated

Answer 254

C was looking to but a house and asked D the surveyor, whether the property he was interested in would be seriously affected by aircraft noise. D negligently reassured him that it was unlikely. C bought the house and discovered it was in fact badly affected. Damages for distress and inconvenience were recoverable

Answer 255

Only those losses caused by the defendants breach of contract can be claimed, but for ds breach of contract, would c have suffered the loss?

Answer 256

A decorator was entrusted with keys to the premises where he was contracted to work. When he left the premises unlocked, a thief entered and stole property. The decorator was liable for the loss which resulted from his failure to comply with his contractual duty to secure the premises properly on leaving

Answer 257

A claimant cannot recover for a loss which is too remote a consequence of the breach. Test of remoteness set out in Hadley v Baxendale for remoteness: 1. Losses which arise naturally “in the usual course of things” 2. Other losses which were reasonably within the contemplation of both parties at the time they made the contract

Answer 258

H contracted with B to delver a replacement part for his flour mill. It wouldn’t start until replacement arrived and B didn’t know this when contract was formed. B was then late delivering. H claimed damages for lost profits in operating the mill as a result of the delay. The court held that the profits were net recoverable because it was too remote a loss

Answer 259

V operated a laundry business and purchased a boiler, which they told n the supplier it would be put to immediate use. N delivered boiler 5 months late. During this time, the laundry was unable to take up a new gov contract, worth many times more than its usual work. The court held that v was able to recover their normal loss of profits on the use of the boiler since it was a consequence of the breach

Answer 260

D installed a pig nut feeder, but negligently failed to open the ventilation hatch on the top, causing the nuts to go mouldy. Many pigs died from eating the mouldy nuts. The court held that damages were recoverable, the deaths were not too remote a loss

Answer 261

Sometimes the parties may agree in advance on the damages to be payable in the event of a breach. Agreed damages clauses allow both sides to know in advance their liability will amount to and plan accordingly

Answer 262

If the parties have inserted an agreed damages clause as an express term, the courts will usually follow them unless the clause serves no legitimate purpose other than to punish one party or is deemed “manifestly excessive”, parking eye v beauis

Answer 263

In the absence of an agreed damages clause, the starting point in assessing the award of damage is the difference in value between what a party expected to receive and what the party in fact received due to the breach

Answer 264

The “cost of repair” or “cost of achieving the contractual performance” can be removed only if it is reasonable

Answer 265

C employed d to build a swimming pool in his garden. He specified the pool needed to be 7ft 6 deep. It was only 6ft 9. C argued that he should be able to recover cost of demolishing and rebuilding pool. The court refused to award damages for cost of rebuilding the pool as it was out of proportion of loss suffered

Answer 266

It is also possible to recover damages for wasted expenditures sometimes known as “reliance loss”

Answer 267

A TV company incurred large expenses in preparing to make a film, including paying scripts writers etc. the TV company signed up an actor called Robert Reed to star in the film. The actor then backed out in breach of contract and compan had to abandon the film as there was no appropriate subs. Anglia were able to recover the money

Answer 268

A claimant is under a duty to mitigate their losses. A claimant cannot recover for losses that could have been avoided by taking reasonable steps

Answer 269

W was wrongly stopped catching his return flight home from Nigeria to London. It was another 12 days before the next flight and during this time he was robbed and his fiancée broke off their engagement. W tried to claim compensation for the break up and for treats he’d given himself to feel better. The court held that W could recover the cost of reasonable hotel accommodation, transport, restaurant bills and telephone calls from the airline

Answer 270

The goods delivered were defective. The railway company purchased replacements which turned out to be more efficient than the original ones. They obtained benefits over and above what they would be got from the original contract. The court said that additional benefits obtained as a result of taking reasonable steps to mitigate loss weer to be accounted for when calculating damages

Answer 271

This is a court order compelling someone to perform their obligations under a contract. Can only be awarded in limited situations

Answer 272

Damages alone must be inadequate. If the claimant could easily purchase replacement foods, specific performance will not apply

Answer 273

An uncle sold his business to his nephew in return for an annual allowance to be paid to himsef and, after his death to his widow. The uncle died and the nephew refused to pay the widow. The court ordered specific performance, compelling nephew to pay

Answer 274

Awarding specific performance mustn’t cause hardship or unfairness to d. In Patel v Ali, c asked for specific performance on a contract for sale of house. The court refused d as he had health issues. She needed to be near her friends and family for help with day to dat activities

Answer 275

Where the contract was obtained unfairly, specific performance will not be available, Walter’s v Morgan

Answer 276

Some contracts are unsuitable for specific performance

Answer 277

The lease of a flat promised tenants that a resident porter would be “constantly in attendance.” The porter was frequently absent. Specific performance of this term was refused as it would require a level of constant supervision by the court

Answer 278

D had a 35 year lease to operate a shop. It was making a loss so ds decided to close it. This was in breach of the contract. The court refused to order specific performance, it wouldn’t compel a business to continue trading, especially at a loss

Answer 279

An injunction is usually a court order instructing someone not to do something

Answer 280

These are granted to prevent future breaches of contract. They may be permanent or temporary

Answer 281

There was a commercial dispute about a time charter. The ship owners alleged that the hirers had breached certain duties under the contract and so wanted to withdraw early from the agreement. The court issued an interim injunction against the ship owners

Answer 282

Where a breach of contract has already taken place, the court may occasionally make a mandatory injunction

Answer 283

Implies a number of terms into consumer contracts and sets out statutory remedies that apply ir the consumers rights aren’t met

contract Flashcards

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