An Introduction to the Law of CONTRACT STEPHEN GRAW

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1 An Introduction to the Law of CONTRACT by STEPHEN GRAW B.Com., LL.B. (Qld) Solicitor of the Supreme Court of Queensland Associate Professor of Business Law, James Cook University of North Queensland SECOND EDITION THE LAW BOOK COMPANY LIMITED 1993

2 Table of Contents Preface Table of Cases Table of Statutes vii xv xxiii Chapter 1 Introduction 1.1 What is a Contract? Form of the Contract Unilateral and Bilateral Contracts The Elements of a Contract Questions 9 Chapter 2 The Offer 2.1 What is an Offer? Offers and Invitations to Treat Instances of Invitation to Treat Instances of Offer rather than Invitation to Treat Offers and Puff Offers Become Effective When Communicated The Offeree's Response Termination of an Offer Revocation Rejection Lapse of Time Change of Circumstances Failure of a Condition Death of a Party Supervening Incapacity Questions 33 Chapter 3 Acceptance 3.1 What is Acceptance? Who may Accept? What may be Accepted? The Problems of Uncertainty and Incompleteness 41 ix

3 x Chapter 3 Acceptance continued 3.5 The Manner of Acceptance Revocation of Acceptance Questions 54 Chapter 4 Intention to be Bound 4.1 The Need to Show an Intention to be Bound Social and Domestic Agreements Business or Commercial Agreements Expressly Excluding Intention Questions 67 Chapter 5 Consideration 5.1 What is Consideration? Features of Consideration Acts or Forbearances not Constituting Consideration Acts or Forbearances in Performance of an Existing Duty Acts or Forbearances in Discharge of an Existing Duty Promissory Estoppel Questions 96 Chapter 6 Capacity to Contract 6.1 General Principles Minors' Contracts Contracts for Necessaries Beneficial Contracts of Service Trading Contracts Ill 6.6 Supply of Non-necessaries The Effect of Legislation The Mentally 111 and Drunkards Convicts Aliens Bankrupts Corporations Married Women Questions 125

4 xi Chapter 7 Privity of Contract 7.1 The Common Law Position Limitations Upon and Exceptions to the Doctrine Recent Developments Questions 141 Chapter 8 Contents of a Contract 8.1 Determining the Terms of a Contract Representation Versus Term of the Contract An Alternative Collateral Contracts The Classification of Express Terms Implied Terms Questions 165 Chapter 9 Exempting, Excluding and Limiting Terms 9.1 The Background The Requirement for Notice The Notice Required Limiting the Scope of Exemption Clauses Fundamental Breach Excluding Versus Limiting Terms Questions 190 Chapter 10 Mistake 10.1 Mistake as a Legal Concept Types of Mistake Common Mistake and Its Effect Mutual Mistake and Its Effect Unilateral Mistake and Its Effect Questions 213 Chapter 11 Misrepresentation 11.1 The Concept of Misrepresentation The Elements of an Actionable Misrepresentation A False Statement Of Fact Addressed to the Party Misled 225

5 xii Chapter 11 Misrepresentation continued 11.6 Intended to Induce the Contract Categories of Misrepresentation Limitations upon Rescission The Effect of Legislation Questions 239 Chapter 12 Duress, Undue Influence and Unconscionability 12.1 The Concept of Duress Duress of the Person Parties to the Duress The Effect of Duress Duress of Goods Economic Duress Undue Influence Relationships of Trust and Confidence Actual Coercion and General Domination The Effect of Undue Influence Unconscionability The Effect of Legislation Questions 265 Chapter 13 Illegal and Void Contracts 13.1 Introduction Contracts Illegal by Statute Contracts Illegal at Common Law Consequences of Illegality Void Contracts Consequences of Voidness Questions 291 Chapter 14 Discharging a Contract 14.1 How Contracts may be Discharged Discharge by Performance Discharge by Agreement Discharge Through Frustration Discharge Through Breach Discharge by Operation of Law Questions 325

6 xiii Chapter 15 Remedies 15.1 Remedies Depend Upon the Breach Damages Damages May Not be Too Remote Damages are Compensatory Damages Must be Mitigated Damages Can be Pre-agreed Liquidated Damages and Penalties Deposits Specific Performance Injunction Restitution Questions 359 Index 363

CONTRACT LAW IN THE SOUTH PACIFIC

CONTRACT LAW IN THE SOUTH PACIFIC Jennifer Corrin Care Senior Lecturer TC Beirne School of Law University of Queensland Cavendish Publishing Limited London Sydney CONTENTS Preface Table of Cases Table