Laws1075 --- Contracts Contents EXAM STRUCTURE ........................................................................................................................................................................... 2 CONTRACT ............................................................................................................................................................................................ 3 I. Identify term ................................................................................................................................................................................. 3 II. Incorporation ................................................................................................................................................................................ 3 III. Wholly in writing OR Partly oral or partly written ............................................................................................................. 5 IV. Construing term ........................................................................................................................................................................... 6 V. Terminate ...................................................................................................................................................................................... 6 A. Terminate by agreement ....................................................................................................................................................... 7 B. Terminate by failure of a contingent condition ............................................................................................................... 7 C. Terminate by breach .............................................................................................................................................................. 7 D. Termination for repudiation ................................................................................................................................................. 8 E. Termination by delay ............................................................................................................................................................. 8 VI. Election ..................................................................................................................................................................................... 9 VII. Frustration ................................................................................................................................................................................ 9 VIII. Damage ...................................................................................................................................................................................10 A. General principle ..................................................................................................................................................................10 B. Measures of damages ..........................................................................................................................................................11 C. Limitation of damages .........................................................................................................................................................11 G. Liquidated damage ...............................................................................................................................................................12 H. Actions for debts ...................................................................................................................................................................13 VITIATING FACTORS.....................................................................................................................................................................14 Misrepresentation: Rescind ..............................................................................................................................................................14 Misleading and Deceptive Conduct ...............................................................................................................................................15 Mistake .................................................................................................................................................................................................16 Duress: Voidable, rescind ................................................................................................................................................................17 Undue Influence: Voidable, rescind ..............................................................................................................................................17 Unconscionable Dealings: voidable, rescind ...............................................................................................................................18 Third Party Impropriety ....................................................................................................................................................................18 Recession(DAMAGE OF TORTS) ...............................................................................................................................................19 Unconscionable and unjust conduct under statute ......................................................................................................................20 I Unconscionable conduct (Part 2-2 ACL, s 20-22)--- Vitiating factors.........................................................................20 II Unjust contract (Contracts Review Act 1980 (NSW))---Vitiating factors Part..........................................................20 III. Unfair contract term law(ACL)--- Contract Part .............................................................................................................20 IV. Consumer guarantees(ACL) --- Contract Part ................................................................................................................20 1 Laws1075 --- Contracts EXAM STRUCTURE ALTERNATIVE APPROACH 1. Misrepresentation - Rep of existing fact, written, oral or implied - Opinion(fraudulent: Fitzpatrick; unequally known: Smith); Law: Taylor; Future fact: Edington - Duty to disclosure: false impression Curwen; later changed, fiduciary(for the other party’s interests) Mckenzie, Better position to know(insurance) Davies - Inducement 2. Misleading : s18 ACL - In trade of commerce(Inter-communication(Concrete Constructions )/private transaction(O’Brien)) - Audience: (specific audience(Butcher)/public at large(Campomar Sociedad Limitada)) - Remedies: s236, 237 242 243. 3. Mistake - Common mistake: ◼ existence of subject matter-condition precedent -void CL(MaRea) and voidable equity(Solle). However, if one party know the non-existence, breach ◼ Quality of subject matter, unless fundamentally different, void-CL(Bell, Great Peace) - Unilateral mistake: ◼ identity: face to face(Lewis)- no void; non face to face(Cundy)- Voidable under equity(Taylor and Smith); ◼ Term: voidable (Taylor) - Mistakenly record documents: rectification : common intention +convincing proof 4. Duress: pressure, illegitimate, causation; [person(Barton); goods(Hawker); economic interests(North Ocean Shipping) 5. Undue Influence: Presumed relationship(parent/child, guardian/ward, solicitor/client, doctor/patient)/ Actual relationship- the shift of the proof, rebut by independent advice (Westmelton) 6. Unconscionable dealing: special disability(Drunkness(Blomley); Mental disorder(Gibbons); Lack of explanation(Amadio), emotional dependence(Louth); inadequate bargaining power(NO-ACCC)), knowledge of disability 7. Unconscionable conduct-Statute ACL ss20-22 8. Recession: Common law- precise recession; Equity: substantial recession(Alati); partial recession(Vadasz): (s21: for goods or services) 9. Statute: Contracts Review Act s 7(1)+ s8 2 Laws1075 --- Contracts CONTRACT I. Identify term A. Whether a statement is a term or mere representation - An oral statement is binding when the statement is made as a promise and intended by the parties to be part of their contractual agreement - Whether the statement would reasonably be considered a binding contractual promise by a person placed in the situation of the parties. ♥ JJ Savage & Sons v Blakney(buy a boat, estimated speed 15 while only 12, ) - Nature of word: Estimate cannot manifest the intention –‘promise, guarantee, warrant can’ ♥ Oscar Chess Ltd v Williams (buy a car, 1948 made while 1939 produced, registration book has been fraudulently altered) - ‘I believe’ cannot manifest the intention to bind the promise. - Seller with no personal knowledge is not placed in a better position. - A reasonable bystander would conclude that seller did not intend to bind himself so as to warrant that … ♥ Dick Bentley Productions v Harold Smith (buy a car, seller verbally fraudulently inform running only 20000 miles) - Representation is dishonest contrary to innocent representation(in Oscar) - Representation is a specific purpose to induce an act - Seller has the better position to know the truth of statement. ♥ Equuscorp v Glengallan Investment(an executed and written load contract, while an earlier oral agreement on different terms) - The execution of the formal written contract discharged any prior oral agreement. - Oral evidence can be regarded as terms: Parol evidence