Anson's law of contract / Sir Jack Beatson, DCL, LLD, FBA, A Lord Justice of Appeal, sometime Rouse Ball, Professor of English Law, University of Cambridge ; Andrew Burrows, DCL, MA, LLM (Harvard), FBA, QC (HON), Professor of the Law of England and Fellow of All Souls College, University of Oxford ; John Cartwright, BCL, MA, Professor of the Law of Contract, University of Oxford, Professor of Anglo-American Private Law, University of Leiden.
2016
KD1554 .A95 2016 (Map It)
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Author
Title
Anson's law of contract / Sir Jack Beatson, DCL, LLD, FBA, A Lord Justice of Appeal, sometime Rouse Ball, Professor of English Law, University of Cambridge ; Andrew Burrows, DCL, MA, LLM (Harvard), FBA, QC (HON), Professor of the Law of England and Fellow of All Souls College, University of Oxford ; John Cartwright, BCL, MA, Professor of the Law of Contract, University of Oxford, Professor of Anglo-American Private Law, University of Leiden.
Uniform Title
Law of contract
Published
Oxford, United Kingdom : Oxford University Press, [2016]
Call Number
KD1554 .A95 2016
Edition
30th edition.
ISBN
9780198734789 (paperback)
0198734786 (paperback)
0198734786 (paperback)
Description
xcvii, 763 pages ; 25 cm
System Control No.
(OCoLC)953927420
Note
"Table of statutes": pages xxiii-xxxi.
"Table of cases": pages xxxvi-xcii.
"Table of cases": pages xxxvi-xcii.
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Portion of Title
Law of contract
Table of Contents
Preface
v
Table of Statutes
xxiii
Table of Statutory Instruments
xxxii
Table of European Union Legislation
xxxiv
Table of International and Other National Legislation and Restatements
xxxv
Table of Cases
xxxvi
Some Abbreviations Used in Reference
xciii
1.
Introduction
1
1.
Nature and Function of Contract
1
a.
Promise or Agreement
1
b.
Functions of Contract
2
c.
Freedom of Contract
4
d.
Sanctity of Contracts
8
e.
Interest Protected by Contract
9
2.
History of Contractual Obligations in English Law
10
a.
Early Actions
11
b.
Assumpsit
14
c.
Subsequent Developments
17
3.
European and International Influences
21
4.
Content of Contract Law
23
a.
Law of Contract or of Contracts
23
b.
Effect of Vitiating Factors
23
5.
Contract as Part of the Law of Obligations
25
a.
Concurrence of Claims in Contract and Tort
26
b.
Contract and Unjust Enrichment
26
6.
Contract and Property
27
Part 1 Formation Of Contract
2.
Agreement
31
1.
Establishing an Agreement
31
a.
Offer and Acceptance
32
b.
Test of Intention
34
2.
Offer
35
a.
Offers and Invitations to Treat
35
b.
General Offers
40
c.
Communication of the Offer
41
3.
Acceptance
42
a.
Offer and Acceptance Must Correspond
43
b.
Communication of the Acceptance
45
c.
Acceptor Must Have Knowledge of Offer
53
d.
Prescribed Mode of Acceptance
54
e.
Revocation of the Acceptance
55
4.
Termination of the Offer
55
a.
Revocation of the Offer
56
b.
Rejection of the Offer
61
c.
Lapse of the Offer
62
d.
Effect of Death
63
5.
Uncertain and Incomplete Agreements
64
a.
Certainty of Terms
64
b.
Incomplete Agreement
70
6.
Intention to Create Legal Relations
73
a.
Social Engagements
74
b.
Family Arrangements
75
c.
Determining Intention
75
3.
Form
79
1.
Formal Requirements
79
2.
Contracts by Deed
80
a.
How a Contract by Deed is Made
80
b.
When it is Essential to Contract by Deed
82
3.
Contracts for Which Writing is Required
82
a.
Statutory Requirements of Writing
82
b.
Contracts of Guarantee
84
c.
Contracts for the Sale or Other Disposition of Land
88
d.
Electronic Contracts
94
4.
Consideration And Promissory Estoppel
96
1.
Consideration
96
a.
Consideration Defined
96
b.
Necessity for Consideration
98
c.
Executory and Executed Consideration
100
d.
Past Consideration
101
e.
Consideration Must Move from the Promisee
103
f.
Consideration Need Not be Adequate
104
g.
Consideration Must be Real
106
h.
Performance of, or Promise to Perform, an Existing Duty
109
i.
Discharge of a Debt
117
j.
Letters of Credit
120
2.
Promissory Estoppel
122
a.
Emergence of Promissory Estoppel
122
b.
Scope of Promissory Estoppel
125
c.
Three Other Types of Estoppel
132
3.
Appraisal of Consideration and Promissory Estoppel
136
Part 2 Contents Of The Contract
5.
Terms Of The Contract
141
1.
Terms, Collateral Warranties, and Representations
141
a.
Terms and Representations
141
b.
Collateral Warranties
145
c.
Extrinsic Evidence
146
2.
Conditions, Warranties, and Innominate Terms
148
a.
Introduction
148
b.
Conditions
149
c.
Warranties
152
d.
Evaluation of the Ab Initio Classification of Terms
153
e.
Innominate Terms
154
f.
Distinguishing Innominate Terms and Conditions
155
g.
Loss of the Right of Discharge
159
h.
Part 1 of the Consumer Rights Act 2015
160
3.
Implied Terms
161
a.
Terms Implied by the Courts and by Statute
161
b.
Terms Implied by the Courts
162
c.
Terms Implied by Statute
171
d.
Part 1 of the Consumer Rights Act 2015: Terms Treated as Included
178
4.
Interpretation of Terms
178
a.
Contextual Approach
179
b.
Particular Rules of Interpretation
183
6.
Exemption Clauses And Unfair Terms
186
1.
Standard Forms of Contract
186
2.
Incorporation
188
a.
Signature
188
b.
Notice
188
c.
Course of Dealing
192
3.
Interpretation of Exemption Clauses
193
a.
Strict Interpretation
194
b.
'Contra Proferentem' Rule
195
c.
Exclusion of Liability for Negligence
195
d.
Limitation Clauses
198
e.
'Fundamental' Terms and 'Fundamental Breach'
199
4.
Other Common Law Rules Controlling Exemption Clauses
206
a.
Express Undertakings
206
b.
Misrepresentation or Fraud
207
c.
Reasonableness at Common Law?
207
5.
Legislative Control of Exemption Clauses and Unfair Terms
208
a.
Exemption Clauses in Non-consumer Contracts: Unfair Contract Terms Act 1977
208
b.
Unfair Terms in Consumer Contracts: Consumer Rights Act 2015
222
c.
Other Legislative Controls on Exemption Clauses and Unfair Terms
232
Part 3 Factors Tending To Defeat Contractual Liability
7.
Incapacity
237
1.
Grounds of Contractual Incapacity
237
2.
Crown and Public Authorities
238
a.
Crown
238
b.
Public Authorities
242
3.
Corporations and Unincorporated Associations
247
a.
Corporations
247
b.
Unincorporated Associations
250
4.
Minors
251
a.
Common Law: Introduction
252
b.
Contracts for Necessaries
252
c.
Voidable Contracts
256
d.
Other Contracts: Unenforceable Unless Ratified
258
e.
Nature of the Liability of Minors
258
f.
Liability of Minors in Tort
260
g.
Liability of Minors in Unjust Enrichment
261
h.
Restitution in Favour of Minors
265
i.
Third Parties
265
5.
Persons Lacking Mental Capacity and Drunken Persons
266
8.
Mistake
269
1.
Introduction
269
2.
Categorizing Mistakes
271
3.
Mistakes about the Terms of the Contract
272
a.
'Subjective' and 'Objective' Agreement in the Formation of a Contract
272
b.
'Objective Test'
273
c.
Mistake in Relation to a Written Document
279
d.
Equitable Remedies for Mistakes about the Terms
287
4.
Mistakes about the Identity of the Person with Whom the Contract is Made
289
a.
Offer can be Accepted only by the Person to whom it is Addressed
290
b.
Need for an Identifiable Third Person
292
c.
Written Contracts
295
d.
Transactions Concluded in the Parties' Presence
295
e.
Current State of the Law; Critique
297
5.
Mistakes of Fact or Law about the Subject-Matter of the Contract or the Surrounding Circumstances
298
a.
Unilateral Mistakes of Fact or Law
300
b.
Common Mistakes of Fact or Law
300
9.
Misrepresentation And Non-Disclosure
318
1.
Introduction
318
2.
Misrepresentation
319
a.
Puffs, Representations, and Terms
319
b.
Requirements for Relief for Misrepresentation
320
c.
Remedies for Misrepresentation: an Overview
327
d.
'Fraudulent', 'Negligent', and 'Innocent' Misrepresentations
330
e.
Rescission of the Contract
332
f.
Damages for Fraudulent Misrepresentation: the Tort of Deceit
342
g.
Damages for Negligent Misrepresentation: the Tort of Negligence or Section 2(1) Misrepresentation Act 1967
346
h.
Exclusion and Limitation of Liability
351
3.
Consumers' Rights to Redress under the Consumer Protection From Unfair Trading Regulations 2008
355
4.
Non-disclosure
358
a.
No General Duty to Disclose
358
b.
Particular Duties of Disclosure
359
c.
Duties of Disclosure Giving Rise to Rescission
360
d.
Contracts Between Those in a Fiduciary Relationship
364
e.
Liability in Tort for Non-Disclosure
367
f.
Statutory Duties of Disclosure
368
g.
Future
371
10.
Duress, Undue Influence, And Unconscionable Bargains
374
1.
Introduction
374
2.
Duress
375
a.
Nature of Duress
375
b.
Unlawful Pressure
377
c.
Duress Distinguished from Legitimate Renegotiation
380
d.
Threats of Lawful Action
382
e.
Rescission
384
3.
Undue Influence
385
a.
Nature of Undue Influence
385
b.
Actual Undue Influence
387
c.
Presumed Undue Influence
388
d.
Rescission
394
e.
Undue Influence by a Third Party to the Contract
397
4.
Unconscionable Bargains
400
5.
Consumers' Rights to Redress under the Consumer Protection from Unfair Trading Regulations 2008
403
6.
Inequality of Bargaining Power?
404
11.
Illegality
409
1.
Introduction
409
2.
Statutory Illegality
410
a.
Express Prohibition: Contract Illegal
410
b.
Implied Prohibition: Contract Illegal
411
c.
Illegal Performance
412
d.
Statute Only Imposes a Penalty
413
e.
Void Contracts
413
f.
Contract Unenforceable by One Party
414
g.
Contract Not Void or Unenforceable
414
3.
Illegality at Common Law
415
a.
Agreements to Commit a Crime or Civil Wrong, or to Perpetrate a Fraud
416
b.
Agreements which Injure the State in its Relations with Other States
418
c.
Agreements which Tend to Injure Good Government
419
d.
Agreements which Tend to Pervert the Course of Justice
420
e.
Agreements which Tend to Abuse the Legal Process
421
f.
Agreements which are Contrary to Good Morals
424
g.
Agreements which Affect the Freedom or Security of Marriage or the Due Discharge of Parental Duty
425
h.
Agreements which Oust the Jurisdiction of the Courts
427
i.
Agreements in Restraint of Trade
428
4.
Effect of Illegality
435
a.
Fundamental Principle of Policy
435
b.
Intention of the Parties and Enforceability of the Contract
439
c.
Contracts Unlawful 'per se'
442
d.
Benefit from Illegal Contracts
443
e.
Recovery of Money Paid or Property Transferred
444
f.
Collateral Transactions
454
5.
Severance
455
a.
Introduction
455
b.
Public Policy
455
c.
Requirements
457
d.
Effect of Severance
460
Part 4 Performance And Discharge
12.
Performance
465
1.
Performance Must be Precise and Exact
465
a.
Standards of Contractual Duty
465
b.
Deviation from Contractual Terms
466
2.
Time of Performance
466
a.
Stipulations as to Time at Common Law
466
b.
Stipulations as to Time in Equity
467
c.
Law of Property Act 1925, section 41
467
d.
Mercantile Contracts
468
3.
Place of Performance
469
4.
Order of Performance
469
5.
Payment
470
a.
Introduction
470
b.
Interbank Transfers
470
c.
Payment by Negotiable Instrument or Documentary Credit
471
d.
Payment by Credit or Charge Card
472
6.
Vicarious Performance
472
7.
Alternative Modes of Performance
473
a.
Contract Option
473
b.
Performance Option
474
8.
Right of Party in Breach to Cure Bad or Incomplete Performance
474
9.
Tender
475
a.
Tender of Acts
475
b.
Tender of Payment
475
c.
Early Tender
476
10.
Partial Performance
476
a.
Entire and Divisible Obligations
476
b.
Doctrine of 'Substantial Performance'
479
c.
Acceptance of Partial Performance by Innocent Party
481
d.
Incontrovertible Benefit
482
13.
Discharge By Agreement
483
1.
Introduction
483
a.
Consideration Applies to Discharge
483
b.
Contracts Evidenced by Writing
484
2.
Forms of Discharge by Agreement
484
a.
Release
484
b.
Accord and Satisfaction
485
c.
Rescission
486
d.
Variation
488
e.
Waiver
490
f.
Provisions for Discharge Contained in the Contract Itself
494
14.
Discharge By Frustration
497
1.
Introduction
497
2.
Emergence of the Doctrine
498
3.
Instances of Frustration
501
a.
Destruction of Subject-Matter of Contract
501
b.
Non-Occurrence of a Particular Event
502
c.
Death, or Incapacity for Personal Service
503
d.
Requisitioning of Ships and Interferences with Charterparties
504
e.
Sale and Carriage of Goods
506
f.
Building Contracts
507
g.
Change in the Law
507
h.
Performance of Only One Party Affected
508
4.
Theoretical Basis of Frustration
509
a.
Implied Term
509
b.
'Just and Reasonable Result'
511
c.
Foundation of the Contract
511
d.
Radical Change in the Obligation
512
5.
Incidence of Risk
514
a.
Express Provision
515
b.
Foreseen Events
515
c.
Prevention of Performance in Manner Intended by One Party
516
d.
Delay
517
e.
Inflation
518
6.
Self-Induced Frustration
518
a.
Choosing Between Different Contracts
519
b.
Negligent Acts
520
7.
Leases and Contracts for the Sale of Land
521
8.
Effects of Frustration
523
a.
Common Law
523
b.
Law Reform (Frustrated Contracts) Act 1943
525
15.
Discharge By Breach
533
1.
Discharge at Option of the Injured Party
533
a.
Effect of Unaccepted Repudiation
534
b.
Failure of Performance
536
c.
Affirmation of Contract
536
d.
Effect of Election to Accept Breach
537
e.
No Reason or Bad Reason for Claiming to be Discharged
537
f.
Consumer Sale and Supply Contracts: Interaction with Other Remedies
538
2.
Forms of Breach which Justify Discharge
540
a.
Renunciation
540
b.
Impossibility Created by One Party
544
c.
Failure of Performance
547
3.
Consequences of Discharge
552
a.
Release from Future Obligations
552
b.
Contract Not Rescinded Ab Initio
553
c.
Accrued Obligations Remain
553
d.
Restitutionary Claims
554
4.
Loss of the Right of Discharge
554
16.
Discharge By Operation Of Law
556
1.
Merger
556
a.
Acceptance of Higher Security
556
b.
Rights Vesting in Same Person
557
2.
Discharge by Judgment of a Court
557
a.
Effect of Bringing Action
557
b.
Effect of Judgment for Claimant
557
c.
Effect of Judgment for Defendant
558
3.
Alteration or Cancellation of a Written Instrument
558
a.
Rule as to Alteration
558
b.
Bills of Exchange
559
c.
Cancellation and Loss
559
4.
Bankruptcy
560
Part 5 Remedies For Breach Of Contract
17.
Damages
563
1.
Damages and Other Remedies for Breach of Contract
563
2.
Compensatory Nature of Damages
564
a.
Compensation for Loss
564
b.
Damages are Not Punitive
564
c.
Difficulty of Assessment No Bar
565
d.
Date for Assessment
566
e.
Compensation for Inconvenience or Mental Distress
566
f.
Loss of Reputation
568
3.
Basis of Assessment of Damages
570
a.
'Performance' or 'Expectation' Measure
570
b.
Reliance Measure
572
4.
Causation
574
5.
Remoteness
575
a.
Basic Two-Branched Rule
575
b.
Impact of The Achilleas
578
c.
Should there be a Difference Between the Tests of Remoteness in Contract and Tort?
581
d.
Type of Damage
582
e.
Damage Arising in the Usual Course of Things
582
f.
Damage Reasonably Supposed to be in the Contemplation of the Parties
585
6.
Mitigation
587
a.
Acting Reasonably
587
b.
Compensating Advantages may Reduce Damages
588
7.
Assessment of Damages in Contracts for the Sale of Goods
589
a.
Non-Delivery
589
b.
Late Delivery
590
c.
Non-Acceptance
590
d.
Breach of Warranty
591
8.
Claimant's Contributory Negligence
594
a.
No Apportionment at Common Law
594
b.
Law Reform (Contributory Negligence) Act 1945
594
9.
Tax Element in Damages
595
10.
Interest
596
11.
Agreed Damages Clauses
598
a.
Liquidated Damages and Penalties
598
b.
Application of the Traditional Test
600
c.
Necessity for Breach
602
d.
Amounts Recoverable
603
18.
Specific Remedies
606
1.
Actions for the Agreed Sum
606
2.
Specific Performance
608
a.
Adequacy of Damages
609
b.
Want of Mutuality
611
c.
Contracts of Personal Service
612
d.
Uncertainty
613
e.
Constant Supervision by the Court
613
f.
Conduct and Hardship
614
g.
Miscellaneous
615
3.
Injunctions
615
a.
Prohibitory Injunctions
615
b.
Mandatory Injunctions
618
4.
Equitable Damages
619
19.
Restitutionary Awards
620
1.
Recovery of Money Paid
621
a.
Recovery by the Innocent Party
621
b.
Recovery by the Party in Breach
624
2.
Restitution in Respect of Services or Goods
627
a.
Introduction
627
b.
Restitutionary Claims by the Innocent Party
628
c.
Quantum Meruit Compared with Damages
628
d.
Restitutionary Claims by the Party in Breach
630
3.
Account of Profits or Damages Measured by Benefit to Contract-Breaker
630
a.
Introduction
630
b.
Attorney-General v Blake
632
c.
Developments Since Attorney-General v Blake
633
20.
Limitation Of Actions
638
1.
Limitation Act 1980
638
a.
General Rule
638
b.
Persons Under a Disability
639
c.
Effect of Fraud, Concealment, and Mistake
639
d.
Acknowledgement and Part Payment
640
e.
Statute Bars Remedy Not Right
641
2.
Bars to Equitable Relief: Laches
641
a.
Statute Applied by Analogy
641
b.
Laches
642
Part 6 Limits Of The Contractual Obligation
21.
Third Parties
647
1.
Introduction
647
2.
Acquisition of Contractual Rights by Third Parties
648
a.
Development of the Common Law Rule
648
b.
Remedies of the Promisee
650
c.
Rationale and Appraisal of the Common Law Rule
656
d.
Contracts (Rights of Third Parties) Act 1999
659
e.
Assignment and Agency
671
f.
Trusts of Contractual Rights
671
g.
Miscellaneous Statutory Exceptions to Privity
675
h.
Contracts Concerning Land
677
i.
Contracts Giving Rise to Tortious Duties of Care to Third Parties
679
j.
Third Parties Taking the Benefit of Exemption Clauses
679
k.
Further Development of the Common Law
686
3.
Imposition of Contractual Liabilities upon Third Parties
687
a.
Introduction
687
b.
Covenants Concerning Land
688
c.
Contracts Concerning Chattels
688
d.
Exemption Clauses Binding Third Parties
692
e.
Contracts (Rights of Third Parties) Act 1999
694
22.
Assignment
696
1.
Assignment
696
a.
No Assignment at Common Law
696
b.
Assignment in Equity: the Historical Background
697
c.
Assignment under the Law of Property Act 1925
698
d.
Equitable Assignment
701
e.
Assignee Takes 'Subject to Equities'
705
f.
Priorities
707
g.
Rights Not Assignable
708
h.
Liabilities Cannot be Assigned
711
2.
Vicarious Performance
712
3.
Novation
712
4.
Assignment by Operation of Law
713
a.
Effect of Death
713
b.
Bankruptcy
713
23.
Agency
715
1.
Modes of Creation
716
a.
Actual Authority
716
b.
Ratification
717
c.
Ostensible Authority
720
d.
Usual Authority?
722
2.
Effects of Agency
723
a.
Contractual Relations Between the Principal and the Third Party
724
b.
Contractual Relations Between the Agent and the Third Party
727
Index
733