CONTRACT LAW SUMMARY

Transcription

1 SUMMARY LAWSKOOL PTY LTD

2 Contents CASES... 7 STATUTES INTRODUCTION DEFINITION: TRADITIONAL ELEMENTS FOR LIABILITY OF BREACH OF CONTRACT AGREEMENT OFFER What is an offer? Offers distinguished from an invitation to treat Contractual intention negatived Ticket cases ACCEPTANCE GENERAL RULES FOR ACCEPTANCE Approaches Acceptance must be in response (reliance) to the offer Acceptance must be absolute, unqualified, and unconditional A meeting of the minds COMMUNICATION OF ACCEPTANCE General rule Postal acceptance rule Silence and Conduct as Acceptance Faxes Electronic Communication TERMINATION OF OFFER Withdrawal Communication of Revocation Revocation and Unilateral Contracts Options Contracts Lapse Failure of condition and changed circumstances Rejection and counter offer Death ILLUSORY PROMISES, INCOMPLETENESS AND UNCERTAIN CONTRACTS Illusory Promises: Incompleteness lawskool.com.au Page 2

3 3.4.3 The Machinery Clause: Uncertainty Severance of Inessential Terms CONSIDERATION INTRODUCTION RULES OF CONSIDERATION Consideration must be referable to the promise Consideration must move from the promisee but not necessarily to the promisor Consideration must be sufficient, but need not be adequate Past consideration is not good consideration Exception to the general rule of past consideration Part payment of a debt is not good consideration Existing legal duty as consideration EXCEPTIONS TO THE EXISTING LEGAL DUTY RULE Beneficiary supplies fresh consideration Beneficiary s promise to perform includes a practical benefit ot the modifying party Payment or promise of payment of a lesser sum than owing Where promise to perform existing legal duty is made to a third party Forbearance and Compromise Termination and replacement of original contract CONSIDERATION CANNOT BE ILLUSORY PROMISES UNDER SEAL PROMISES BINDING IN THE ABSENCE OF CONSIDERATION PROMISSORY ESTOPPEL ESTOPPEL IN THE CONTEXT OF PRE-EXISTING RELATIONSHIPS THE AUSTRALIAN DEVELOPMENT OF ESTOPPEL INTENTION TO CREATE LEGAL RELATIONS PRESUMPTIONS DOMESTIC ARRANGEMENTS COMMERCIAL TRANSACTIONS SUBJECT TO CONTRACTS DEALINGS WITH THE GOVERNMENT CONSTITUTIONS OF VOLUNTARY ASSOCIATIONS CONTRACTS REQUIRING WRITTEN EVIDENCE CONTRACTS REQUIRING WRITING THE EFFECTS OF NON-COMPLIANCE Common law contract unenforceable but not void lawskool.com.au Page 3

4 7.2.2 Equitable intervention the doctrine of part performance IDENTIFICATION OF TERMS EXPRESS TERMS Pre contractual negotiations - Terms and mere representations COLLATERAL CONTRACTS Elements of a collateral contract CONTRACTS IN WRITING THE PAROL EVIDENCE RULE: Exceptions to the Parole Evidence Rule: Integration Clauses CONSTRUCTION OF TERMS OF A CONTRACT AND THE USE OF EXTRINSIC MATERIAL RECTIFICATION OF DOCUMENT BECAUSE OF MISTAKE INCORPORATIONS OF TERMS SIGNED CONTRACTS THE EFFECTS OF SIGNATURE EXCEPTIONS TO THE GENERAL RULE THAT SIGNATURE IS BINDING EXCEPTION 1 Documental misrepresentation EXCEPTION 2 Manifest lack of contractual intent EXCEPTION 3 NON EST FACTUM INCORPORATION OF TERMS BY NOTICE Incorporate of terms by notice Timing Incorporation of terms by notice à Knowledge Incorporation of terms by notice unusual terms INCORPORATION BY COURSE OF DEALINGS INCORPORATION BY REFERENCE IMPLIED TERMS TERMS IMPLIED IN FACT TERMS IMPLIED IN LAW TERMS IMPLIED BY CUSTOM OR TRADE USAGE EXCLUSION CLAUSES CONSTRUCTION OF TERMS OF THE CONTRACT THE INTERPRETATION OF EXCLUSION CLAUSES Types of exclusion clauses Construction contra proferentum STATUTORY CONTROL OF EXCLUSION CLAUSES PRIVITY THE GENERAL RULE EXCEPTIONS TO THE RULE lawskool.com.au Page 4

5 Agency Insurance contracts CONTRACTS FOR THE BENEFIT OF A THIRD PARTY CONTRACT VARIATION CONTRACT VARIATION BY CONDUCT PERFORMANCE ORDER OF PERFORMANCE SUBSTANTIAL PERFORMANCE BREACH OF CONTRACT INTRODUCTION BREACH BY FAILURE TO PERFORM TERMINATION FOR BREACH OF CONTRACT Generally Situations where contracts may be terminated Breach of a condition (breach of an essential term) Breach of a term going to the root of the contract Breach of Intermediate Term TERMINATION FOR REPUDIATORY CONDUCT Readiness and Willingness TERMINATION FOR DELAY Breach of time clauses FRUSTRATION Frustration Destruction of subject matter Frustration Purpose of contract destroyed Frustration State of affairs RESTRICTIONS ON THE RIGHT TO TERMINATE ELECTION WAIVER ESTOPPEL EFFECTS OF TERMINATION DAMAGES AND EQUITABLE REMEDIES DATE OF ASSESSING DAMAGES IDENTIFYING THE LOSS CAUSATION REMOTENESS MITIGATION OF LOSS lawskool.com.au Page 5

6 17.6 HEADS OF DAMAGE Loss of profit (Expectation loss) Reliance loss Loss of chance Injured feelings Contractual Damages liquidated damages and penalties MISREPRESENTATION ESTABLISHING MISREPRESENTATION: FACTUAL MISREPRESENTATION ELEMENTS OF MISREPRESENTATION: False statement must be of a material fact: Statement must induce entry into the contract Rescission: MISLEADING AND DECEPTIVE CONDUCT UNDER THE AUSTRALIAN CONSUMER LAW S IN TRADE OR COMMERCE MISLEADING OR DECEPTIVE CONDUCT DETERMINING THE AUDIENCE Conduct aimed at the public as a whole Conduct aimed at identified individuals REMEDIES FOR MISLEADING AND DECEPTIVE CONDUCT Causation Measure of damages CONTRACTS VOIDABLE ON GROUNDS OF UNCONSCIONABLE CONDUCT GENERAL PRINCIPLES DURESS Physical Duress Duress of Goods Economic Duress Remedies UNDUE INFLUENCE Presumed undue influence: Situations of Dependence: Rebutting the presumption UNCONSCIONABLE BARGAINING Rebutting the presumption UNCONSCIONABILITY UNDER STATUTE lawskool.com.au Page 6

7 SOURCES CONSULTED Cases A Roberts & Co v Leicestershire County Council [1961] 2 All ER ACCC v Berbatis Holdings (2003) 197 ALR , 186 Accounting Systems 2000 (Developments) P/d v CCH Aus Ltd (1993) 42 FCR Adams v Lindsell (1818) EWHC KB J Administration of Papua New Guinea v Leahy [ ] 105 CLR , 83 AGC (Advances) Pty Ltd v McWhirter (1977) 1 BLR , 24, 136 Air Great Lakes v K S Easter (Holdings) (1985) 2 NSWLR , 81 Alati v Kruger (1955) 94 CLR Alexander v Cambridge Credit Corp Ltd [1985] 2 NSWLR , 154 Alfred McAlpine Construction Ltd v Panatown Ltd [2001] 1 AC Associated Newspapers Ltd v Bancks (1951) 83 CLR Attorney-General for England and Wales v R [2002] 2 NSLR Australian Woollen Mills Pty Ltd v Cth (1954) 92 CLR , 52, 53, 82, 83 B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR Baker v Taylor (1906) 6 SR (NSW) Balfour v Balfour [1919] 2 KB Ballantyne v Raphael (1889) 15 VLR Ballas V Theophilos (No 2) (1957) 98 CLR Balmain New Ferry Co Ltd v Robertson (1904) 4 CLR Baltic Shipping Co v Dillon (Mikhail Lermontov) (1993) 176 CLR , 160 Banco de Portugal v Waterlow and Sons Ltd (1932) AC Banque Brussels Lambert SA v Australian National Industries Ltd (1989) 21 NSWLR Barry v Davies [2001] 1 All ER Barton v Armstrong [1976] AC , 177, 178 Baulkham Hills Private Hospital v G R Securities (1986) 40 NSWLR Beaton v McDivitt (1987) 13 NSWLR , 54 Bellgrove v Eldridge (1954) 90 CLR Beswick v Beswick [1968] AC Bettini v Gye (1876) 1 QBD , 144 Bevanere Pty Ltd v Lubidineuse (1985) 7 FCR Biotechnology Australia Pty Ltd V Pace (1988) 15 NSWLR Blomley v Ryan (1956) 99 CLR , 182 Bolton v Mahadeva [1972] 1 WLR Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd (1982) 149 CLR Boucaut Bay Co Ltd v Commonwealth (1927) 40 CLR BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR , 120, 122 lawskool.com.au Page 7

8 Brambles Holdings v Bathurst City Council [2001] NSWCA , 38 Bressan V Squires [1974] 2 NSWLR , 36 Bret v J S & Wife (1600) Cro Eliz Bridgewater v Leahy (1998) 158 ALR Bright v Sampson (1985) 1 NSWLR , 128 Brinkibon [1983] 2 AC Brogden V Metropolitan Railway Company (1877) 2 AC , 38 Bunge Corporation New York v Tradax Export SA Panama [1981] 1 WLR , 148 Burger King Corporation v Hungry Jack s Pty Ltd (2001) 69 NSWLR Burgess v Cox (1950) 2 All ER Butler Machine Tool Co Ltd V Ex-Cell-O Corporation (Eng) Ltd [1979] 1 All ER , 32, 40, 45 Byrne v Australian Airlines (1995) 185 CLR , 121 Byrne V van Tienhoven [1880] 5 CPD Cameron v Hogan (1934) 51 CLR Campomar Sociedad Limitada v Nike International Limited (2000) 202 CLR Car and Universal Finance Co Ltd v Caldwell [1965] 1 QB Carlill V Carbolic Smoke Ball Company [1893] 1 QB , 22, 52 Carr v J A Berriman Pty Ltd (1953) 89 CLR Carter v Hyde (1923) 33 CLR Casey v Commissioner for Inland Revenue [1959] NZLR Causer v Browne [1952] VLR Cavallari v Premier Refrigeration Company Co Ltd (1952) 85 CLR Central London Property Trust v High Trees House Ltd [1947] KB , 72 Chaplin v Hicks [1911] 2 KB Chappell & Co Ltd v Nestle & Co Ltd [1960] AC Civil Service Co-Operative Society of Victoria v Blyth (1914) 17 CLR Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd (1991) 24 NSWLR Coastal Estates v Melevande [1965] VR Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR , 98, 101, 120, 147 Cohen v Cohen (1929) 42 CLR Collins v Godefroy [1831] 1 B Ad , 64 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR , 183 Commonwealth of Australia v Crothall Hospital Services (Aust) Ltd (1981) 36 ALR Commonwealth of Australia v Verwayen (1990) 170 CLR Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR , 159 Concrete Constructions (NSW) v Nelson (1990) 169 CLR Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur (Australia) Ltd (1986) 160 CLR Coogee Esplanade Surf Motel Pty Ltd v Commonwealth of Australia (1983) 50 ALR , 82 lawskool.com.au Page 8

9 Couchman v Hill [1947] KB , 98 Couldery v Bartrum (1880) 19 Ch. D Coulls v Bagot s Executor and Trustee Co Ltd (1967) 119 CLR , 129 Council of the City of Sydney v West (1965) 114 CLR Crescendo Management Pty Ltd v Westpac Banking Corp (1988) 19 NSWLR , 179 Curtis v Chemical Cleaning & Dyeing Co [1951] 1 KB Cutter v Powell (1795) 101 ER Darlington Futures Ltd v Delco Australia (1986) 161 CLR , 126, 127 David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR Davis Contractors Ltd v Fareham UDC [1956] 2 All ER Davis v London & Provincial Marine Insurance Co (1878) 8 Ch D Demagogue Pty Ltd v Ramensky [1993] ATPR , 171 Dick Bentley Productions Ltd v Harold Smith Ltd [1965] 1 WLR , 93 Dickinson V Dodds [1876] 2 Ch D , 42, 45 Director of Public Prosecutions for Victoria v Le (2007) 232 CLR DTR Nominees Ltd v Mona Homes Pty Ltd (1978) 138 CLR Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd (1915) AC Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC Dunton V Dunton (1892) 18 VLR Eddington v Fitzmaurice (1885) 29 Ch.D Edwards v Skyways Ltd [1964] 1 WLR , 80 Eggleston v Marley Engineering Pty Ltd (1979) 21 SASR Ellul & Ellul v Oakes (1972) 3 SASR , 92, 94 Empirnall Holdings Pty Ltd V Machon Paul Partners Pty Ltd (1988) 14 NSWLR , 38 Entores Ltd V Miles Far East Corp [1955] 2 QB Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR Ermogenous v Greek Orthodox Community of South Australia Inc [2002] HCA , 79 Esanda Finance Corp v Tong & Ors (1997) 41 NSWLR , 186 Esso Petroleum Ltd v Commissioners of Customs & Excise [1976] 1 All ER Falco v James McEwan & Co Pty Ltd [1977] VR Farmers Mercantile & Chaff Mills Ltd v Caade (1921) 30 CLR Federal Commerce and Navigation Co Ltd v Molena Alpha Inc and Ors [1979] 1 All ER , 143 Felthouse V Bindley (1862) 142 ER Financings Ltd V Stimson [1962] 3 All ER , 42, 44 Foakes v Beer (1884) 9 App Cas , 67 Foran v Wight (1989) 168 CLR Futuretronics International Pty Ltd v Gadzhis [1992] 2 VR , 171 G Scammell & Nephew Ltd v HC & JG Ouston [1941] AC Garcia v National Australia Bank (1998) 194 CLR lawskool.com.au Page 9

10 Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd [2003] FCA George Hudson Holdings Limited V Rudder (1973) 128 CLR Gibson v Manchester City Council [1979] 1 All ER , 20, 21 Giumelli v Giumelli (1999) 73 ALJR Glasbrook Bros Ltd v Glamorgan County Council [1925] AC Goldsborough Mort & Co Ltd v Quinn (1910) 10 CLR , 41, 43 Google Inc v Australian Competition and Consumer Commission [2013] HCA Great Northern Railway Company v Witham (1873) LR 9 CP Hadley v Baxendale (1854) 9 Ex , 155, 156 Harding v Eddy [1951] KB Hardwick Game Farm v Suffolk Agricultural & Poultry Producers Association [1969] 2 AC Harrison v National Bank of Australia Ltd [1982] Tas LR Hart v McDonald (1910) 10 CLR Hartley v Ponsoby (1857) 119 ER Harvela Investments Ltd v Royal Trust of Canada (CI) Ltd [1986] AC , 25, 26 Harvey v Edwards Dunlop & Co Ltd (1927) 39 CLR Hawker Pacific Pty Ltd v Helicopter Charter Pty Ltd (1991) 22 NSWLR Heilbut, Symons v Buckleton [1913] AC , 95 Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (1988) 79 ALR Henthorn v Fraser [1892] 2 Ch , 35 Hercules Motors Pty Ltd v Schubert (1953) 53 SR (NSW) Heywood v Wellers (1976) QB Hobbs v London and South Western Railway Company (1875) LR 10 QB Hoenig v Isaacs [1952] 2 All ER Holmes v Jones (1907) 4 CLR Holwell Securities Ltd v Hughes [1974] 1 WLR Hong Kong Fir Shipping Co v Kawasaki Kisen Kaisha Ltd [1962] 2 QB , 138 Hope v RCA Photophone of Australia Pty Ltd (1937) 59 CLR Howe v Teefy (1927) 27 SR (NSW) Hoyt s Pty Ltd v Spencer (1919) 27 CLR , 97 Hughes Aircraft Systems v Airservices Australia (1997) 146 ALR Hughes v Metropolitan Railway Co (1877) 2 AC Hyde v Wrench (1840) 49 ER Immer (No 45) Pty Ltd v Uniting Church in Australia Property Trust (NSW) (1993) 182 CLR Interphoto Picture Library Ltd v Stilleto Visual Programmes Ltd [1989] QB JJ Savage & Sons Pty Ltd v Blakney (1970) 119 CLR Johnson Matthey Ltd v AC Rochester Overseas Corporation (1990) 23 NSWLR Johnson v Buttress (1936) 56 CLR lawskool.com.au Page 10

11 Jones v Padavatton [1969] 2 All ER Kakavas v Crown Melbourne Ltd [2013] HCA Kaufman v Gerson [1904] 1 KB Koompahtoo Local Aboriginal Land Council v Sanpine Pty Limited (2007) CLR , 139 Krell v Henry [1903] 2 KB L Estrange v Graucob [1934] 2 KB Lampleigh v Brathwait (1916) Hob Latec Finance Ltd v Knight (1969) 2 NSWR Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 85 ALR Law of Property Act 1936 (SA) Le Mans Grand Prix Circuits Pty Ltd v Iliadis [1998] 4 VR Leaf v International Galleries [1950] 2 KB Lee v Ah Gee (1920) VLR 278 D Legione v Hateley (1983) 152 CLR , 72 Lexmead (Basingstoke) Ltd v Lewis [1982] AC LG Thorne & Co P/L v Thomas Borthwick & Sons (A Asia) Ltd (1956) 56 SR (NSW) Life Insurance Co. Of Australia Ltd v Phillips (1925) 36 CLR Liverpool City Council v Irwin [1977] AC Louth v Diprose (1992) 175 CLR , 184 Lucy v The Commonwealth (1923) 33 CLR Luna Park (NSW) Ltd v Tramways Advertising Pty Ltd (1938) 61 CLR , 136, 141, 142, 151, 152 MacRobertson Miller Airline Services v Commissioner of State Taxation (WA) (1975) 133 CLR Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR Maple Flock Co v Universal Furniture Products (Wembley) [1934] 1 KB Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR March v E and MH Stramare (1991) 171 CLR Marks v GIO Australia Holdings Ltd [1998] 196 CLR Masters v Cameron (1954) 91 CLR , 27, 81 Masterton Homes v Palm Assets [2009] NSWCA McBride v Sandland (1918) 25 CLR McDonald v Dennys Lascelles Ltd (1933) 48 CLR , 150 McRae v Commonwealth Disposals Commission (1950) 84 CLR Meehan v Jones (1982) 149 CLR , 69 Mobil Oil Australia Ltd v Lyndel Nominees Pty Ltd (1998) 153 ALR Musumeci v Winadell Pty Ltd (1994) 34 NSWLR , 66 North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd [1979] 1 QB O Brien v Smolonogov (1983) 53 ALR Oceanic Sun Line Special Shipping Company v Fay (1988) 165 CLR lawskool.com.au Page 11

12 Ogilvie v Ryan [1976] 2 NSWLR , 88 Olley v Marlborough Court Hotel [1949] 1 KB Oscar Chess v Williams [1957] 1 WLR , 93 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR Pao On v Lau Yiu Long [1980] AC , 176 Parker v South Eastern Railway Co. (1877) 2 CPD , 112 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR , 133 Payne v Cave (1789) 100 ER Peek v Gurney (1873) All ER Petelin v Cullen (1975) 132 CLR Pharmaceutical Society of Great Britain v Boots Cash Chemist Ltd [1953] 1 QB Photo Production Ltd v Securicor Transport Ltd [1980] AC Pinnel s case (1602) 5 Co. Rep. 117a... 60, 67 Pirie v Saunders (1961) 104 CLR Placer Development Ltd v Commonwealth (1969) 121 CLR Popiw v Popiw [1959] VR , 87 Port Jackson Stevedoring v Salmond & Spraggon (Aust) (The New York Star ) (1978) 139 CLR Precision Pools Pty Ltd v Cmr of Taxation (1992) 37 FCR Prenn v Simmonds [1971] 1 WLR Public Trustee v Taylor [1978] VR Pukallus v Cameron (1982) 43 ALR Pym v Campbell (1856) 119 ER R v Clarke (1927) 40 CLR Re Casey s Patents [1892] 1 Ch Re London and Northern Bank; ex parte Jones [1900] 1 Ch Re Selectmove Ltd [1995] 2 All ER 531 (CA) Redgrave v Hurd (1881) 20 Ch. D , 170 Redowood Pty Ltd v Mongoose Pty Ltd [2005] NSWCA Reg Glass Pty Ltd v Rivers Locking Systems Pty Ltd (1968) 120 CLR , 153 Regent v Millet (1976) 133 CLR Rehins Pty Ltd v Debin Nominees Pty Ltd (No 2) [2011] WASC Reynolds v Atherton (1922) 66 Sol Jo Ridgeway v Wharton (1857) 10 Eng. Rep Roscola v Thomas (1842) 3 QB Rose and Frank Co v JR Crompton & Bros Ltd [1923] 2 KB Royal Botanic Gardens and Domain Trust v South Sydney Council (2002) 186 ALR Sagacious Procurement Pty Ltd (Subject to a Deed of Co Arrangement) v Symbion Sargent v ASL Development Ltd (1974) 131 CLR Saunders (Executrix of Estate of Rose Maud Gallie) v Anglia Building Society (1971) UKHL lawskool.com.au Page 12

13 Saxon v Saxon (1976) 24 RFL Seivewright v Brennan [2005] NSWSC Shadwell v Shadwell (1860) 142 ER Shepperd v Ryde Corporation (1952) 85 CLR Shevill v Builders Licensing Board (1982) 149 CLR Shuey v United States, 92 U.S. 73 (1875) Sindel v Georgiou (1984) 154 CLR Smith v Hughes (1871) LR 6 QB , 103 Smith v Land & House Property Corporation (1884) 28 Ch D , 165 Smith v William Charlick Ltd (1924) 34 CLR Spencer v Harding (1870) LR 5 CP State Rail Authority (NSW) v Heath Outdoor Pty Ltd (1986) 7 NSWLR , 100 Steadman v Steadman [1976] AC , 89 Stilk v Myrick (1809) 2 Camp , 63 Stuart v Condor Commercial Insulation [2006] NSWCA Sudbrook Trading Estates v Eggleton [1983] 1 AC Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR T A Sundell & Sons Pty Ltd v Emm Yannoulatos (Overseas) Pty Ltd [1956] 56 SR (NSW) Tabcorp Holdings v Bowen Investments (2009) 236 CLR Taylor v Caldwell [1863] EWHC QB J The Solholt [1983] 1 Lloyd s Rep Thomas National Transport (Melb) v May & Baker (Aus) (1966) 115 CLR Thomas v Thomas (1842) 2 QB , 58 Thomson v McInnes (1911) 12 CLR Thomson v Palmer (1933) 49 CLR Thorby v Goldberg (1964) 112 CLR Thornton v Shoe Lane Parking Ltd [1971] 2 QB , 113 Todd v Nichol [1957] SASR Toll (FGCT) Pty Ltd V Alphapharm Pty Ltd (2004) 219 CLR , 30, 101, 105, 106 Trident General Insurance v McNiece Bros (1988) 165 CLR , 129, 130 Tropical Traders Ltd v Goonan (1964) 111 CLR Ulbrick v Laidlaw [1924] VR , 25 United Scientific Holdings Ltd v Burnley Borough Council [1978] AC Universal Cargo Carriers Corp v Citati [1957] 2 QB , 143 Universe Tankships of Monrovia v International Transport Workers Federation [1983] 1 AC University of WA v Gray [2009] FCAFC Update Constructions v Rozelle Child Care Centre (1990) 20 NSWLR Upper Hunter County District Council v Australian Chilling and Freezing Do. (1968) 18 CLR , 49, 101 lawskool.com.au Page 13

14 Vadasz v Pioneer Concrete (1995) 130 ALR Veivers v Cordingly [1989] 2 Qd R Victoria Laundry (Windsor) Ltd v Newman Industries Ltd [1949] 2 KB Wallis v Pratt [1911] AC Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR , 73, 149 Ward v Byham [1956] 2 All ER , 64 West v AGC (Advances) (1986) 5 NSWLR Western Export Services v Jiren International [2011] HCA Westmelton (Vic) v Archer and Schulman [1982] VR Whitlock v Brew (1968) 118 CLR Whittet v State Bank (1991) 24 NSWLR Wigan v Edwards (1973) 1 ALR , 68 Williams v Roffey Bros & Nicholls (Contractors) Ltd [1991] 1 QB , 65 Woolworths Ltd v Kelly (1991) 22 NSWLR , 57 lawskool.com.au Page 14

15 Statutes Builders and Licensing Act 1971 (NSW) Civil Law (Property) Act 2006 (ACT)... 86, 88 Competition and Consumer Act 2010 (Cth) , 168 Contacts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW)... 86, 88 Conveyancing and Law of Property Act 1884 (Tas) Conveyancing and Law of Property Act 1884 (Vic) Corporations Act 2001 (Cth) Electronic Transactions Act 2000 (Vic) Fair Trading Act 1999 (Vic) Family Law Act 1975 (Cth) Frustrated Contracts Act 1978 (NSW) Frustrated Contracts Act 1988 (SA) Goods Act 1958 (Vic)... 24, 122 Industrial Relations Act 1996 (NSW) Instruments Act 1958 (Vic)... 85, 86 Insurance Contracts Act 1984 (Cth) Law of Property Act 1936 (Tas) Law of Property Act 2000 (NT)... 85, 86, 88, 131 Limitation Act 1969 (NSW) Limitation Act 1974 (Tas) Limitation Act 1981 (NT) Limitation Act 1985 (ACT) Limitation Act 2005 (WA) Limitations of Action Act 1936 (SA) Limitations of Actions Act 1958 (Vic) Limitations of Actions Act 1974 (Qld) Mercantile Law Act 1935 (Tas) Property Law Act 1958 (Vic) Property Law Act 1958 (WA) Property Law Act 1969 (WA)... 88, 131 Property Law Act 1974 (Qld)... 85, 88, 131 Property Law Act 1974 (SA) Sale of Goods Act 1895 (SA)... 24, 122 Sale of Goods Act 1895 (WA)... 24, 85, 122 Sale of Goods Act 1896 (Qld)... 24, 122 Sale of Goods Act 1896 (Tas)... 24, 85, 122 Sale of Goods Act 1923 (NSW) Sale of Goods Act 1954 (ACT)... 24, 122 lawskool.com.au Page 15

16 Sales of Goods Act 1972 (NT) Trade Practices Act 1974 (Cth) lawskool.com.au Page 16

17 1. INTRODUCTION 1.1 definition: A contract is simply an agreement between two parties that is legally binding The law of contract is concerned with: o The making of the contract o The enforceability and effect of the terms of the contract on the parties o The performance and discharge of the contract o Rights and remedies available where the contract is breached General principles of contract law are derived from common law The modern law of contract is based upon the idea of freedom of contract whereby parties are free to choose who to contract with, and to negotiate the terms therein. This assumes the parties have a similar capacity to negotiate terms favourable to their interests. However, there is increasing recognition that this is not always the case in practice: o Contracts occur more frequently between consumers and companies than between commercially savvy business people/entities. The inherent inequality of bargaining positions in the former case has led Parliament to pass measures aimed at protecting consumers, for example allowing the courts jurisdiction to grant relief for unjust contracts o There is now an emphasis on the will and intention of parties, rather than what is merely contained in the black letter terms of the contracts Many contracts are informal, and the terms are implied. Thus, contract law often has an important role in completing the contract A contract exists when the basic elements are satisfied. The 4 essential elements necessary for contract formation are: (i) an agreement Usually compromised of (a) an offer, and (b) acceptance of the offer (ii) consideration Each party must give something in return for the promise made by the other party (iii) certainty Must be complete and certain (iv) an intention to create legal relations Must appear so objectively lawskool.com.au Page 17

18 Courts use an objective test to determine whether a contract exists i.e. would a reasonable person perceive that a contract exists? Toll (FGCT) v Alphapharm 1 Courts will generally try to find a way to uphold a contract rather than hold it does not exist or apply due to technical grounds 1.2 Traditional elements for liability of breach of contract A claim for breach of contract will succeed if it is shown that: o A valid contract was made between the parties; o The party has breached the contract as properly construed; o There are no excusing factors for non-performance; o The contract was terminated; and o It is not unconscionable to make the claim To order the complete version of the Lawskool Contract Law Summary please visit 1 Toll (FGCT) Pty Ltd V Alphapharm Pty Ltd (2004) 219 CLR 165. lawskool.com.au Page 18