Contract Law, Eleventh Edition
By Catherine Elliott and Frances Quinn
Contents
Preface xiii
Acknowledgements xiv
Table of cases xv
Table of statutes xxvi
Table of statutory instruments xxix
Table of EC legislation xxx
Introduction 1
Why do we need contract law? 2
The origins of contract law 2
Freedom of contract 4
Contract and fairness 4
The objective approach 5
The Human Rights Act 1998 6
Reading list 8
Reading on the internet 8
Part 1 the formation of a contract 9
Chapter 1 Offer and acceptance 11
Unilateral and bilateral contracts 12
Offer 12
Invitations to treat 14
How long does an offer last? 17
Acceptance 24
Acceptance must be communicated 29
Exceptions to the communication rule 29
Ignorance of the offer 33
Cross-offers 34
Time of the formation of the contract 34
Offer and acceptance implied by the court 35
Agreements to negotiate 36
Agreements to agree, letters of intent and agreements ‘subject to contract’ 37
Common types of contracts 38
How important are offer and acceptance? 43
Problems with offer and acceptance 44
Answering questions 45
Summary of Chapter 1 49
Reading list 52
Reading on the internet 52
Chapter 2 Certainty 53
Provision for clarification 55
Terms implied by statute 56
Previous course of dealing 56
Reasonableness 56
Custom 57
The ‘officious bystander’ 57
Removing minor uncertain terms 58
Answering questions 58
Summary of Chapter 2 59
Reading list 60
Chapter 3 Intention to create legal relations 61
Social and domestic agreements 62
Commercial agreements 64
How important is intention to create legal relations? 68
Answering questions 68
Summary of Chapter 3 69
Reading list 70
Chapter 4 Capacity 71
Minors 72
Mental incapacity 77
Corporations 78
Answering questions 79
Summary of Chapter 4 81
Reading list 83
Reading on the internet 83
Chapter 5 Formalities 84
Contracts that must be made by deed 85
Contracts that must be in writing 85
Contracts that must be evidenced in writing 88
Answering questions 91
Summary of Chapter 5 91
Reading on the internet 92
Chapter 6 Consideration 93
What is consideration? 94
Performance of an existing duty 100
Waiver and promissory estoppel 107
Agreement by deed 112
Consideration and conditional gifts 112
Problems with consideration 113
The future of consideration 115
Reform 116
Answering questions 116
Summary of Chapter 6 119
Reading list 121
Reading on the internet 122
Part 2 the contents of a contract 123
Chapter 7 Terms of the contract 125
Express terms 126
Oral statements 126
Written terms 129
Collateral contracts 131
Oral and written statements 132
Interpretation of express terms 132
Implied terms 140
Terms implied in fact 140
Terms implied in law 145
Terms implied by custom 146
Terms implied by trade usage 146
Entire agreement clauses 147
The relative importance of contractual terms 148
Conditions 148
Warranties 149
Innominate terms 149
Criticism and reform 152
Answering questions 154
Summary of Chapter 7 157
Reading list 160
Reading on the internet 160
Chapter 8 Unfair contract terms 161
Exemption clauses 162
Common law controls 162
Statutory controls 171
Answering questions 178
Summary of Chapter 8 181
Reading list 184
Reading on the internet 184
Part 3 Vitiating factors 185
Chapter 9 Misrepresentation 187
What is a misrepresentation? 188
Types of misrepresentation 195
Remedies for misrepresentation 199
Misrepresentation and terms 206
Excluding liability for misrepresentation 206
Entire agreement clauses and misrepresentation 208
Answering questions 210
Summary of Chapter 9 211
Reading list 214
Chapter 10 Mistake 215
General principles 216
Common mistake 219
Cross-purposes mistake 224
Mistakes relating to documents 230
Criticism and reform 233
Answering questions 235
Summary of Chapter 10 237
Reading list 240
Reading on the internet 240
Chapter 11 Illegality 241
Introduction 242
Violation of legal rules and public policy 243
The effect of an illegal contract 252
Criticism 254
Answering questions 258
Summary of Chapter 11 258
Reading list 260
Reading on the internet 260
Chapter 12 Duress and undue influence 261
Duress 262
Undue influence 266
Inequality of bargaining power 274
Answering questions 274
Summary of Chapter 12 277
Reading list 279
Reading on the internet 279
Part 4 the rights and liabilities of third parties 281
Chapter 13 Third parties 283
The privity rule 284
Reform 285
Contractual rights conferred on third parties 286
Statutory rights 286
Common law exceptions 289
Exceptions in equity 295
Arguments for the privity rule 296
Arguments against the privity rule 297
Answering questions 299
Summary of Chapter 13 300
Reading list 303
Reading on the internet 303
Part 5 discharge and remedies 305
Chapter 14 Discharge of contract 307
Performance 308
The entire performance rule 308
Mitigation of the entire performance rule 309
Vicarious performance 312
Frustration 313
What will amount to frustration? 313
What will not amount to frustration? 315
Legal consequences of frustration 318
The theory of frustration 320
Breach 321
Actual breach 321
Anticipatory breach 322
Lawful excuse 323
Effect of breach 323
Choice to affirm or discharge 325
agreement 329
Consideration 329
Formalities 329
Answering questions 330
Summary of Chapter 14 335
Reading list 338
Chapter 15 Remedies 339
Common law remedies 340
Damages 340
Action for an agreed sum 367
Restitution 367
equitable remedies 371
Specific performance 372
Injunction 374
remedies agreed by the parties 375
Liquidated damages 376
Penalty clauses 377
Extinction of remedies 379
The statutory time limits 380
Problems with remedies 381
Answering questions 383
Summary of Chapter 15 390
Reading list 394
Reading on the internet 395
Part 6 Consumer protection 397
Chapter 16 Consumer contracts 399
History 400
Key terms 400
Consumer rights 401
Manufacturers’ liability 410
Consumer Protection from Unfair Trading Regulations 2008 413
Unsolicited goods 416
Consumer credit 416
Contract law and consumer protection 417
Answering questions 418
Summary of Chapter 16 421
Reading list 422
Reading on the internet 423
Appendix: Answering examination questions 425
Essay questions 426
Problem questions 428
Glossary 431
Index 435