CHAR_A01.PDF, page 1-18 @ Normalize ( CHAR_A01.QXD )

The rule in L’Estrange v Graucob This rule is named after the case from which it came, and states that if a person signs a docum ...

Terms implied by the courts The courts also intervene to decide when statutory terms should be implied in uncertain circumstance ...

The following case is the general authority for the principle that a term may be implied if it is clear that the parties must ha ...

The following case applied the ‘officious bystander’ test to an agreement between trade unions. It is clear from the above case, ...

parties, had they considered them. It is important to realise that the test of this is a subjective one. It is not a matter of w ...

Distinguish between terms and representations Special knowledge of the representor – Dick Bentley Productions Ltd v Harold Smit ...

Collateral contracts A representation may in some circumstances form part of a collateral contract, where it would not be includ ...

7 Types of terms within a contract The terms found within a contract are clearly not all of the same importance. For example, in ...

The effect of a breach As we can see from the above examples, the need to differentiate between terms arises because of the reme ...

The courts may look at the overall picture presented by the contract and make a decision based on the consequence of the breach ...

Reference to statute Parliament takes a somewhat paternalistic view of consumer protection, largely because the average member o ...

‘Course of dealing’ Sometimes the courts will find that the parties not only meet on equal terms, but that they have traded with ...

This approach is very different from that traditionally taken by the courts. Rather than decide whether a term should be a condi ...

It was held by the House of Lords that this small technical breach should not allow the buyers to repudiate. A rigid application ...

The following is an interesting case which came well before Hong Kong Fir but which used a similar approach, showing that the id ...

Summary The main types of terms Conditions and warranties – Poussard v Spiers and Pond, Bettini v Gye. The effect of a breach of ...

Innominate terms Examine the approach taken in Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd. See also Cehave v Bre ...

8 Exemption clauses An exemption clause in a contract is one which seeks to exclude or limit in some way one party’s liability t ...

The courts’ approach to both types is similar in the procedure followed, so in this chapter the term ‘exemption clauses’, where ...

Exemption clauses 121 Construction In this context construction means interpretation. The court will ask the question: Can the e ...