{"title":"5. Consideration and Promissory Estoppel","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0005","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0005","url":null,"abstract":"This chapter evaluates the other requirement for an agreement to be legally enforceable: consideration. In its simplest form, consideration is often described as being something of value that is given (or promised) by each party in exchange for the other party’s promise or performance. Disputes concerning consideration usually begin by one party claiming that the other is in breach of their contract. The other party then argues that no consideration had been given in return for what they promised to do, and therefore the agreement is not enforceable. In a case concerning consideration, courts will typically focus on the obligations to be enforced, and then work out if something of value was given (or promised) in return for the performance of those obligations. Sometimes, a strict application of the consideration requirement is a barrier to reflecting the parties’ intentions. For that reason, the courts have developed a more relaxed approach in certain circumstances. There is also a limited exception to the requirement for consideration, which is known as promissory estoppel.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115836561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"15. Undue Influence, Unconscionability, and Equality of Bargaining Power","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0015","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0015","url":null,"abstract":"This chapter examines undue influence, which is largely about pressure and influence arising from a relationship. It begins with the basic role of the law on undue influence before moving to the substantive case law. The case law is divided into three categories, which are based on the different ways of proving undue influence. The first relates to what is known as ‘actual undue influence’, which is where a complainant proves undue influence. The second is where undue influence between two parties can be presumed from the circumstances. The third category has been a major problem in modern cases and it involves undue influence coming from a third party. The chapter then turns to the wider issues that complete the ‘bigger picture’. The first of these is the area often referred to as ‘unconscionability’, which is about the exploitation of weakness. The second is the attempt to create a wider ‘inequality of bargaining power’ principle. Finally, the chapter looks at the Consumer Protection from Unfair Trading Practices Regulations 2008, which can cover conduct otherwise classed as duress, undue influence, and harassment.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"114 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123316510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"12. Third Party Rights (the Doctrine of Privity)","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0012","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0012","url":null,"abstract":"This chapter highlights the doctrine of privity of contract; that means it is about the rights and obligations of third parties. The starting point is the basic common law rule of privity. At common law, third parties have no general right to enforce contracts made by others. Likewise, contracts made by others cannot impose obligations on third parties. This is a fairly straightforward principle and is based on sound reasons, but in practice privity has become a complex area. The existence of the rule resulted in a range of clever devices being developed to get around it, all of which are of commercial importance. And the rule against parties enforcing contracts made by others in particular was also severely criticized over the years for various reasons. The basis for such criticism resulted in some partial exceptions being developed in the case law, and ultimately in a statute—namely the Contracts (Rights of Third Parties) Act 1999. This complicates matters further because the Act only applies in certain circumstances and its application can be excluded by the terms of the contract. As such, there will be circumstances in which the common law exceptions and devices remain relevant, and they must therefore be studied alongside it.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132143475","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"8. Breach and Termination of the Contract","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0008","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0008","url":null,"abstract":"This chapter addresses the breach and termination of the contract. Since the terms represent obligations of the parties, where such an obligation is not followed, we say there has been a breach of the contract. The chapter examines the law relating to breach of contract and how breach can end a contract. When a term is breached, it does not end the contract automatically. Instead, the breach will entitle the innocent party to compensation for losses caused by the breach. In addition, the breach might allow the innocent party to choose to end the contract. Such an option is often determined by the type of term breached or the seriousness of the breach. This means that a typical dispute following an obvious breach will be about whether the innocent party can end the contract. Before one can explore when a breach can result in the contract ending, however, one needs to briefly look at how a party can breach an obligation. That is based on whether the obligation is due to be performed; the type of obligation; and the standard of performance that it requires.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130908412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"3. Agreement Part II: Acceptance","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0003","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0003","url":null,"abstract":"This chapter examines the key cases and principles relating to acceptance. Where an offer has an essential requirement relating to acceptance (like the method of acceptance) then it must be followed. However, equivalent alternatives might be permitted if the offeror has not done enough to make the requirement essential. Acceptance must be in response to an offer, but the motive for accepting is not relevant. The general rule is that acceptance is effective once it has been communicated (received). Automated ticket and vending machines present an offer so that acceptance takes place when the customer is committed—as when payment is made. Meanwhile, emailed acceptance and the use of websites to communicate acceptance are likely to operate on the basis of the general rule. The traditional analysis based on offer and acceptance will be applied to ‘battle of forms’ cases. In exceptional cases, courts may look to the wider context in such cases to identify the terms of an agreement.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127185762","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"7. Exemption Clauses and Unfair Terms","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0007","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0007","url":null,"abstract":"This chapter assesses exemption clauses and unfair terms. Exemption clauses are terms that either exclude or limit the liability of a party. The law relating to the use of such clauses is a mixture of rules found in both the common law and legislation; the common law rules apply to all contracts. In addition, the Unfair Contract Terms Act 1977 applies to the use of exemption clauses in contracts between two businesses. For consumers, the Consumer Rights Act 2015 provides wider protection from unfair terms including exemption clauses. The practical context of exemption clauses is simple. One party will be in breach and so the other will seek compensation for the loss caused by the breach. The party in breach will then defend the action by relying on an exemption clause. The dispute is then about whether or not the clause can be relied upon. The circumstances in which terms might be assessed for being ‘unfair’ can be wider than this. Typically, a business will take action against a consumer following the consumer’s failure to perform an obligation, which will then prompt the consumer to challenge the obligation as based on an unfair term.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"71 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125758124","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"6. The Terms of the Contract","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0006","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0006","url":null,"abstract":"This chapter focuses on the terms of the contract. Such terms can be expressed in writing or in oral statements. In addition, some terms can be implied into a contract by legislation or the courts. As a result, contracts can be in the form of a written document, an oral agreement, or even a combination of written terms and oral statements and all three can contain implied terms. The chapter then looks at how terms can be implied into contracts. It also explores the law on express terms. In the context of what has been agreed, there are two main types of dispute. One type of dispute relates to the existence of a term that a party claims has been breached. The other type of dispute over what has been agreed relates to the meaning of the terms. In such cases, the meaning of the disputed term will determine whether it has been breached. That requires the courts to interpret the term to reflect the parties’ apparent intentions.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126815246","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"17. Mistake","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0017","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0017","url":null,"abstract":"This chapter assesses situations in which one or both parties enter into a contract on the basis of a mistake that is so serious that it negates their consent to a contract; or, it means they did not consent to the agreement in the first place. Following such an ‘operative’ mistake, the contract will be void from the start and therefore treated as though a valid contract never existed. The chapter then considers the law on mistake. It starts with mistakes that prevent the formation of an agreement. The most significant mistake of this type is known as a ‘unilateral mistake’, which is where one party appears to have entered the contract on the basis of a mistake. The next significant issue is known as ‘common mistake’, which is where, at the time of creating the contract, both parties appear to be making the same mistake about the existence of an essential state of affairs. Finally, the chapter addresses the related remedy of equitable rectification before finally turning to the highly exceptional defence of non est factum.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115504774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"4. Certainty and the Intention to Enter a Legal Relationship","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0004","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0004","url":null,"abstract":"This chapter investigates the basic law on the certainty and intention requirements in the creation of an agreement. To be legally enforceable as a contract, the agreement must be sufficiently certain and show an intention to enter a legal relationship. Agreements can be uncertain because they are vague, or because they are incomplete. This can indicate there was no intention to enter a legal relationship. The courts must not rewrite the agreement; they must simply interpret it. If an agreement is incomplete, the courts may decide that the missing terms are implied, and this is more likely if there has been performance. A gap in an incomplete agreement can be filled if the parties have provided a mechanism for doing so, or if the terms can be construed so as to do so. The chapter then differentiates between an agreement to negotiate (a lock-in agreement) and agreements not to negotiate with other parties (lock-out agreements). Agreements between businesses are presumed to be made with the intention to be legally binding, but the facts, the interpretation of the terms, or the surrounding circumstances could mean there was no such intention.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125520456","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"16. Frustration of the Contract","authors":"André Naidoo","doi":"10.1093/he/9780198749868.003.0016","DOIUrl":"https://doi.org/10.1093/he/9780198749868.003.0016","url":null,"abstract":"This chapter focuses on the frustration of the contract. It is possible for an unexpected event to take place that would make the performance of a contract completely different to what both parties intended. It might be that the event made performance physically impossible or illegal. Alternatively, perhaps the contract was based on a state of affairs that no longer exists as a result of the event. In such circumstances, it might be that the event has ‘frustrated’ the contract so that the contract is ended automatically. The chapter presents the background and basis of the frustration principle before turning to the ways in which a contract can be frustrated. It then addresses the factors limiting the scope of the principle. Finally, the chapter examines the effects of a frustrated contract, which includes limited ‘restitutionary’ financial adjustments between the parties based on specific legislation. Unlike misrepresentation, duress, and influence, frustration is not about remedying wrongdoing. But nor is it about providing a fair distribution of the loss in response to unexpected risks. Rather, the law seeks to prevent one party unfairly benefiting from an unforeseen windfall at the expense of the other in the aftermath of a frustrating event.","PeriodicalId":208017,"journal":{"name":"Complete Contract Law","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121884398","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}