1 Introduction 1
1.1 Introduction 1
1.2 The Scope of the Law of Contract 1
1.3 The Basis of the Law of Contract 3
1.4 Contract,Tort and Restitution 6
1.5 Contract and Empirical Work 7
1.6 A European Contract Law? 8
Preface to the Fourth Edition 9
Table of Cases 10
1.7 An International Contract Law? 10
1.8 The Role of National Contract Law in a Global Economy 12
1.9 Contract Law and Human Rights 13
Part Ⅰ THE FORMATION AND SCOP OF A CONTRACT 17
2.1 Who Decides that an Agreement has been Reached? 19
2 Agreement:Clearing the Ground 19
2.2 A Residual Role for a Subjective Approach? 22
2.3 The Objective Test 25
2.4 Has Agreement been Reached? 26
Summary 29
Exercises 30
3 Offer and Acceptance 31
Table of Statutes 32
3.1 Offer and Invitation to Treat 32
3.2 Display of Goods for Sale 34
3.3 Advertisements 36
3.4 Auction Sales 37
3.5 Tenders 38
3.6 Time-tables and Vending Machines 41
3.7 Acceptance 42
3.8 Communication of the Acceptance 42
3.9 Acceptance in Ignorance of the Offer 43
3.10 Prescribed Method of Acceptance 44
3.11 Acceptance by Silence 45
3.12 Exceptions to the Rule Requiring Communication of Acceptance 47
3.13 Acceptance in Unilateral Contracts 50
3.14 Termination of the Offer 51
3.15 The Limits of Offer and Acceptance 53
Exercises 55
Summary 55
4 Certainty and Agreement Mistakes 57
4.1 Certainty 57
4.2 Vagueness 63
4.3 Incompleteness 63
4.4 A General Rule? 65
4.5 A Restitutionary Approach? 65
4.6 Mistake Negativing Consent 67
Summary 72
Exercises 73
5 Consideration and Form 74
5.1 Requirements of Form 74
5.2 Consideration Defined 79
5.3 The Many Functions of Consideration 81
5.4 Consideration and Motive 82
5.5 The Scope of the Doctrine 82
5.6 Consideration Must Be Sufficient but It Need Not Be Adequate 83
5.7 Trivial Acts 83
5.8 Intangible Returns 84
5.9 Compromise and Forbearance to Sue 87
5.10 Performance of a Duty Imposed by Law 88
5.11 Performance of a Contractual Duty Owed to the Promisor 90
5.12 Practical Benefit 93
5.13 Consideration and Duress 95
5.14 Alternative Analyses 97
5.15 Part Payment of a Debt 98
5.16 Performance of a Duty Imposed by Contract with a Third Party 100
5.18 Past Consideration 101
5.17 Conceptions of Value 101
5.19 Consideration Must Move from the Promisee 103
5.20 Reliance Upon Non-bargain Promises 104
5.21 The Role of Consideration 106
5.22 Estoppel 108
5.23 Estoppel by Representation 110
5.24 Waiver and Variation 111
5.25 Promissory Estoppel 112
5.26 Estoppel by Convention 114
5.27 Proprietary Estoppel 115
5.28 The Relationship between Estoppel and Consideration 117
5.29 Conclusion:The Future of Consideration 121
Summary 123
Exercises 124
6 Intention to Create Legal Relations 125
6.1 Introduction 125
6.2 Balfour v.Balfour 126
6.3 Rebutting the Presumption 127
6.4 Domestic and Social Agreements 127
6.5 Commercial Agreements 130
Exercises 131
Summary 131
7 Third Party Rights 133
7.1 Introduction 133
7.2 Privity in Operation 134
7.3 Privity and Consideration 137
7.4 Criticisms of the Doctrine of Privity 140
7.5 The Contracts(Rights of Third Parties)Act 1999 140
7.6 The Intention Test 141
7.8 The Remedies Available to the Third Party 146
7.7 No Consideration Required 146
7.9 Variation and Cancellation 147
7.10 The Defences Available to the Promisor 149
7.11 Avoiding Double Liability 150
7.12 Exceptions to the New Third Party Right of Action 151
7.13 Preserving Existing Exceptions 152
7.14 Rights of the Promisee 152
7.15 Collateral Contracts 158
7.16 Agency 159
7.17 The Trust Concept 160
7.18 The Role of the Law of Tort 162
7.19 Assignment 165
7.20 Negotiable Instruments 165
7.21 Statutory Exceptions 166
7.22 A Further Common Law Exception? 167
7.23 Interference with Contractual Rights 167
7.24 Conclusion 169
Summary 170
Exercises 171
Part Ⅱ THE CONTENT OF A CONTRACT 173
8 What is a Term? 175
8.1 What is a Term? 175
8.2 Verification 176
8.3 Importance 176
8.4 Special Knowledge 177
8.5 The Consequences of the Distinction Between a Term and a Mere Representation 177
8.6 Can a Representation be Incorporated into a Contract as a Term? 178
Exercises 179
Summary 179
9 The Sources of Comtractual Terms 181
9.1 Introduction 181
9.2 The Parol Evidence Rule 181
9.3 Bound by Your Signature? 183
9.4 Incorporation of Written Terms 188
9.5 Incorporation by a Course of Dealing 191
9.6 Interpretation 193
9.7 Rectification 200
9.8 Implied Terms 202
Summary 205
Exercises 206
10 The Classification of Contractual Terms 207
10.1 The Classification of Terms 207
10.2 What is a Condition ? 208
10.3 Distinguishing Between a Condition and a Warranty 208
10.4 The Need for Change? 212
10.5 Innominate Terms 216
Summary 218
Exercises 219
11 Exclusion Clauses 220
11.1 Exclusion Clauses:Defence or Definition? 220
11.2 The Functions of Exclusion Clauses 222
11.3 An Outline of the Law 222
11.4 Incorporation 223
11.5 Construction of Exclusion Clauses 223
11.6 Negligence Liability 226
11.7 Fundamental Breach 229
11.9 The Unfair Contract Terms Act 1977 231
11.8 Other Common Law Controls upon Exclusion Clauses 231
11.10 Negligence Liability 232
11.11 Liability for Breach of Contract 237
11.12 Indemnity Clauses 242
11.13 Attempts at Evasion 242
11.14 The Reasonableness Test 244
11.15 Excepted Contracts 247
11.16 Conclusion 247
Summary 248
Exercises 249
Part Ⅲ POLICING THE CONTRACT 251
12 A Duty to Disclose Material Facts? 253
12.1 Introduction 253
12.2 Snatching at a Bargain 254
12.3 Representation by Conduct 255
12.4 Representation Falsified by Later Events 256
12.8 A Duty of Disclosure in Tort? 257
12.7 Fiduciary Relationships 257
12.6 Contracts Uberrimae Fidei 257
12.5 Statement Literally True but Misleading 257
12.9 The Role of the Sale of Goods Act 1979 258
12.10 Conclusion 259
Summary 264
Exercises 264
13 Misrepresentation 266
13.1 Introduction 266
13.2 What is a Misrepresentation? 267
13.3 A Statement of Existing Fact(or Law?) 268
13.4 Addressed to the Party Misled 270
13.5 Inducement 271
13.6 The Types of Misrepresentation 273
13.7 Remedies 279
13.8 Rescission 280
13.9 Damages 282
13.10 Excluding Liability for Misrepresentation 286
Summary 287
Exercises 288
14.1 Introduction 289
14 Common Mistake and frustration 289
14.2 Common Mistake 291
14.3 Mistake as to the Existence of the Subject-matter of the Contract 292
14.4 Mistake as to Identity of the Subject-matter 295
14.5 Mistake as to the Possibility of Performing the Contract 295
14.6 Mistake as to Quality 296
14.7 Mistake in Equity 298
14.8 Frustration 301
14.9 Frustration,Force Majeure and Hardship 302
14.10 Frustration:A Sterile Doctrine? 305
14.11 Impossibility 305
14.12 Frustration of Purpose 306
14.13 Illegality 308
14.14 Express Provision 308
14.15 Foreseen and Forsecable Events 309
14.16 Self-Induced Frustration 310
14.17 The Effects of Frustration 313
14.18 Conclusion 317
Summary 319
Exercises 320
15 Illegality 321
15.1 Introduction 321
15.2 Some Difficulties of Classification 322
15.3 Illegality in Performance 323
15.4 Statutory Illegality 325
15.5 Gaming and Wagering Contracts 326
15.6 Illegality at Common Law 326
15.8 Contracts Prejudicial to Family Life 327
15.7 Contracts Contrary to Good Morals 327
15.9 Contracts to Commit a Crime or a Civil Wrong 328
15.10 Contracts Prejudicial to the Administration of Justice 329
15.11 Contracts Prejudicial to Public Relations 329
15.12 Contracts in Restraint of Trade 330
15.13 Contracts of Employment 331
15.14 Contracts for the Sale of a Business 332
15.15 Restrictive Trading and Analogous Agreements 332
15.16 The Scope of Public Policy 333
15.17 The Effects of Illegality 334
15.18 The Recovery of Money or Property 335
15.19 Severance 341
Summary 342
Exercises 342
16 Capacity 344
16.1 Introduction 344
16.2 Minors 344
16.3 Mental Incapacity and Drunkenness 348
16.4 Companies 349
Exercises 350
Summary 350
17 Duress,Undue Influence,and Inequality of Bargaining Power 351
17.1 Introduction 351
17.2 Cnmmon Law Duress 351
17.3 Undue Influence 357
17.4 Inequality of Bargaining Power 360
17.5 The Role of Parliament 362
17.6 The Unfair Terms in Consumer Contracts Regulations 1999 363
17.7 A General Doctrine of Unconscionability? 370
Summary 372
Exercises 373
Part Ⅳ PERFORMANCE,DISCHARGE AND REMEDIES FOR BREACH OF CONTRACT 375
18 Performance and Discharge of the Contract 377
18.1 Performance 377
18.2 Discharge of the Contract 378
18.3 Discharge by Performance 378
18.5 Discharge by Operation of Law 379
Summary 379
18.4 Discharge by Agreement 379
Exercises 380
19 Breach of Contract 381
19.1 Introduction:Breach Defined 381
19.2 When Does Breach Occur? 382
19.3 The Consequences of Breach 383
19.4 Damages 383
19.5 Enforcement by the Party in Breach 383
19.6 The Right to Terminate Performance of the Contract 384
19.7 The Prospective Nature of Breach 385
19.8 The Right of Election 386
19.9 Anticipatory Breach 390
Summary 393
Exercises 393
20 Damages for Breach of Contract 395
20.1 Introduction 395
20.2 Compensation and the Different Interests 395
20.3 The Expectation Interest 397
20.4 The Restitution Interest 402
20.5 Failure of Consideration and Enrichment by Subtraction 403
20.6 Enrichment by Wrongdoing 405
20.7 Reliance Interest 411
20.8 The Date of Assessment 413
20.9 The Commitment to the Protection of the Expectation Interest 413
20.10 Mitigation 413
20.11 Remoteness 415
20.12 Causation 418
20.13 Damages for Pain and Suffering and the Consumer Surplus 420
Summary 423
20.14 Conclusion 423
Exercises 424
21 Obtaining an Adequate Remedy 425
21.1 Introduction 425
21.2 The Entire Obligations(or Contracts )Rule 426
21.3 The Creation of Conditions 428
21.4 A Claim in Debt 428
21.5 Liquidated Damages 429
21.6 Evading the Penalty Clause Rule 433
21.7 Deposits and Part Payments 435
21.8 Liquidated Damages,Penalty Clauses and Forfeitures:An Assessment 439
21.9 Specific Performance 441
21.10 Injunctions 446
21.11 Damages in Lieu of Specific Performance 446
21.12 Conclusion 446
Summary 447
Exercises 448
Bibliography 451
Index 458