Chapter 1 Introduction 1
1.1 English Law System 2
1.1.1 Historical Background of Modern English Legal System 2
1.1.2 Categorisation of Law 9
1.1.3 Legal Method 11
1.2 Contract 15
1.2.1 Definition of Contract 15
1.2.2 The Classification of Contracts 16
1.2.3 Contracts in Shipping 17
1.2.4 Elements of the Law of Contract 18
1.2.5 A Guide to the Law of Contract in this Book 18
1.3 Tort Law 22
1.3.1 Introduction 22
1.3.2 Categories of Tort 23
1.3.3 Introduction of Main Torts 24
1.3.4 A Guide of Tort Law in this Book 27
Chapter 2 Contract Law-Formation of a Contract:Offer and Acceptance 29
2.1 Offer 29
2.1.1 Definiteness of an Offer 29
2.1.2 Offer Distinguished from Invitation to Treat 30
2.2 Acceptance 36
2.2.1 Unconditional Acceptance 36
2.2.2 Subject to Contract 38
2.2.3 Acceptance of Tenders 42
2.2.4 Acceptance Communicated 44
2.2.5 Specified Methods of Acceptance 48
2.2.6 Acceptance Given in Exchange for the Offer 49
2.2.7 Offer and Acceptance Implied by the Court 50
2.2.8 Termination of Offer 51
2.2.9 Anomalous Cases 53
Chapter 3 Contract Law-Formation of a Contract:Intention to Be Legally Bound 54
3.1 The Reasonable Man Test 54
3.2 Two Presumptions 55
3.3 Domestic Agreements 55
3.3.1 Agreements between Husband and Wife 55
3.3.2 Agreements between Parent and Child 57
3.3.3 Other Domestic Arrangements 58
3.4 Commercial Agreements 58
3.5 Collective Agreements 64
Chapter 4 Contract Law-Formation of a Contract:Consideration 66
4.1 Definition 66
4.2 Types of Consideration-Executory,Executed and Past 67
4.3 Judicial Rules Relating to Consideration 71
4.3.1 Consideration Moving from Promise 71
4.3.2 Consideration Not Adequate 75
4.3.3 Consideration Real 76
4.3.4 Existing Public Duty 78
4.3.5 Existing Contractual Duty 80
4.3.6 Existing Contractual Duty to a Third Party 82
4.4 Part-payment of Debts 83
4.5 Promissory Estoppel 85
Chapter 5 Contract Law-Privity of Contract 89
5.1 Development of the Doctrine of Privity of Contract 89
5.2 Established Exceptions 91
5.2.1 Statutory Exceptions 91
5.2.2 Agency 94
5.2.3 Collateral Contract 95
5.2.4 Covenants Which Run with the Land 95
5.2.5 Restrictions on Price 96
5.3 Attempts to Evade Privity 96
5.3.1 Restrictions upon Use 97
5.3.2 Restrictions upon Price 101
5.3.3 The Trust Device 102
5.3.4 Section 56 of the Law of Property Act 1925 105
5.4 Right to Claim Damages 106
5.5 Contracts(Rights of Third Parties)Act 1999 111
5.5.1 Variation and Cancellation 112
5.5.2 Defences 113
5.5.3 Exceptions 114
5.6 Himalaya Clause 114
Chapter 6 Contract Law-Terms of the Contract 117
6.1 Certainty 117
6.2 Express Terms 119
6.2.1 The Parol Evidence Rule 119
6.2.2 Representations and Terms 120
6.2.3 Collateral Contracts 124
6.3 Conditions,Warranties and Innominate Terms 126
6.3.1 Condition 126
6.3.2 Warranty 127
6.3.3 Innominate Term 128
6.4 Implied Terms 130
6.4.1 Terms Implied by Custom 130
6.4.2 Terms Implied by Statute 131
6.4.3 Terms Implied by the Court 132
6.5 Interpretation of Terms in Contracts 135
Chapter 7 Contract Law-Exclusion Clause 140
7.1 Introduction 140
7.2 Incorporation 140
7.2.1 Document Signed 140
7.2.2 Requirement of Notice 141
7.2.3 Previous Dealings 142
7.3 Construction 143
7.3.1 Contra Proferentem Rule 143
7.3.2 Repugnance to Main Purpose 144
7.3.3 Fundamental Breach 144
7.4 Further Limitations on Exclusion Clauses 146
7.4.1 Position of Third Parties 146
7.4.2 Inconsistent Oral Promise 147
7.5 Legislation 148
7.5.1 Unfair Contract Terms Act 1977 148
7.5.2 Evaluation of the Act 166
7.5.3 Unfair Terms in Consumer Contract Regulations 1999 167
Chapter 8 Contract Law-Misrepresentation 169
8.1 Introduction 169
8.2 Actionable Misrepresentation 170
8.2.1 False Statement of Fact 170
8.2.2 Meaning of Inducement 176
8.3 Types of Misrepresentation 179
8.3.1 Fraudulent Misrepresentation 179
8.3.2 Negligence Misrepresentation at Common Law 181
8.3.3 Negligence Misrepresentation under the Misrepresentation Act 1967 184
8.3.4 Wholly Innocent Misrepresentation 187
8.4 Remedies for Misrepresentation 187
8.4.1 Rescission 188
8.4.2 Bars to Rescission 189
8.4.3 Damages for Misrepresentation 190
8.5 Relationship between Misrepresentation and Estoppel 192
Chapter 9 Contract Law-Mistake 194
9.1 Introduction 194
9.2 Mistake Relating to Documents 196
9.2.1 Non Est Factum 197
9.2.2 Rectification 201
9.3 Identical or Common Mistake 202
9.3.1 Agreements Void Both at Common Law and Equity 202
9.3.2 Agreements in Respect of Which Equity Will Give Relief 204
9.4 Non-identical Mistake 207
9.4.1 Effect of Mutual and Unilateral Mistake at Common Law 209
9.4.2 Effect of Mutual and Unilateral Mistake in Equity 215
Chapter 10 Contract Law-Duress and Undue Influence 218
10.1 Duress 218
10.1.1 Unconscionable Bargains 220
10.1.2 Economic Duress 221
10.2 Undue Influence 227
10.2.1 No Special Relationship between the Contracting Parties 228
10.2.2 A Confidential Relationship between the Parties 229
Chapter 11 Contract Law-Discharge of the Contract 237
11.1 Introduction 237
11.2 Frustration 237
11.2.1 Nature and Rationale of the Doctrine 237
11.2.2 Theories as to the Basis of the Doctrine 242
11.2.3 Limits to Frustration 244
11.2.4 Legal Effect of Frustration 247
11.2.5 Law Reform(Frustrated Contracts)Act 1943 248
11.3 Breach 249
11.4 Agreement 252
11.4.1 Consideration and Formalities 253
11.4.2 Rescission,Variation and Waiver 254
11.5 Performance 255
11.5.1 Severable Contracts 256
11.5.2 Substantial Performance 257
11.5.3 Voluntary Acceptance of Partial Performance 257
11.5.4 Prevention of Performance by Breach or Frustration 258
11.6 Tender of Performance 259
11.7 Stipulations as to Time 259
Chapter 12 Contract Law-Remedies 261
12.1 Introduction 261
12.2 Damages 261
12.2.1 Basis of the Award 261
12.2.2 Contributory Negligence 262
12.2.3 Damages for Mental Distress 263
12.2.4 Remoteness of Damage 266
12.2.5 Measure of Damages 269
12.2.6 Mitigation 271
12.2.7 Liquidated Damages and Penalties 273
12.3 Action for an Agreed Sum 274
12.4 Quantum Meruit 277
12.5 Specific Performance and Injunction 278
12.5.1 Specific Performance 278
12.5.2 Injunction 280
12.6 Other Remedies 281
12.7 Limitation of Actions 281
Chapter 13 Tort Law-Negligence:Duty of Care 283
13.1 Introduction 283
13.2 Establish a Duty 283
13.2.1 Forseeability and Proximity and the“Just and Reasonable”Requirement 284
13.2.2 Public Policy 290
13.2.3 Present Position 292
13.2.4 Conclusion 293
13.3 Economic Loss:Negligent Misstatement 294
13.3.1 Hedley Byrne 294
13.3.2 Subsequent Developments 295
13.3.3 Application of Hedley Byrne 296
13.3.4 Disclaimers and Contributory Negligence 297
13.3.5 Reliance by a Third Party 298
13.4 Economic Loss:Negligent Acts 298
13.4.1 Damage to Third Party Property 299
13.4.2 Acquiring Defective Property 299
13.5 Nervous Shock 302
13.6 Omissions 305
13.7 Legal Immunities 306
Chapter 14 Tort Law-Breach of Duty 308
14.1 Introduction 308
14.2 Objective Standard 311
14.2.1 Standard of the Reasonable Person 311
14.2.2 Negligence Distinguished from“Mere Errors” 312
14.2.3 General or Variable? 314
14.3 Professional Standards 316
14.4 Weighing the Risk and Gravity of Harm against the Cost of Prevention 320
14.4.1 Risk and Foreseeability of Damage 321
14.4.2 Assessing the Costs of Prevention 323
14.5 Proof of Carelessness 327
Chapter 15 Tort Law-Causation and Remoteness of Damage 332
15.1 Cause of Damage 332
15.1.1 Nature of Causal Inquiry 332
15.1.2 But-for Causation 335
15.2 Remoteness of Damages 349
15.2.1 Intervening Acts of the Third Parties 349
15.2.2 Act of the Claimant 352
15.2.3 Foreseeability of the Extent of Damage 355
15.2.4 Foreseeability of the Causal Sequence 359
15.2.5 Remoteness and Damages to Property 360
15.2.6 Remoteness and Pure Economic Loss 362
15.2.7 Remoteness of Damage in Contract and Tort 363
Chapter 16 Tort Law-Damages 365
16.1 Preliminary Observations 365
16.2 Notions of Damage and Damages 365
16.3 Types of Damages 366
16.3.1 General and Special Damages 366
16.3.2 Nominal and Substantial Damages 367
16.3.3 Contemptuous and Aggravated Damages 367
16.3.4 Punitive(or Exemplary)Damages 369
16.3.5 Compensatory Damages 375
16.4 The Principle of Full Compensation 375
16.5 The Interrelationship of Tort and Other Compensation Systems 378
16.5.1 Benefits not Covered by the Statutory Regime 380
16.5.2 Benefits Subject to the Statutory Regime 381
16.6 Lump-sum Compensation 383
16.7 Pecuniary Losses 386
16.7.1 Medical and Other Expenses up to the Date of Trial 386
16.7.2 Prospective Losses 387
16.8 Injunctions 388
16.8.1 Prohibitory Injunctions 388
16.8.2 Mandatory Injunctions 389
16.8.3 Quis Timet Injunctions 389
16.8.4 Interlocutory(or Interim)Injunctions 389
16.9 Damages in Lieu of Injunctions 390
16.10 Joint and Concurrent Liability 391
16.10.1 Joint and Concurrent Liability Distinguished 391
16.10.2 Successive Actions 391
16.10.3 Contribution and Apportionment 392
16.10.4 Indemnity 397
16.10.5 Secondary Civil Liability 398
Conclusions and Look Forward 400