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Ackner, Lord Regent Hotels (UK) Ltd v. Pageguide Ltd (1985),
539‘The Simona’ (1989), 485, 508Walford v. Miles (1992), 19–20, 26
Aikens J Harper v. Interchange Group Ltd, 400Statoil ASA v. Louis Dreyfus Energy Services LP
(‘The Harriette N’) (2008), 82, 86, 292Trident Turboprop (Dublin) Ltd v. First Flight
Couriers (2008), 16, 269Alderson, Baron, 525, 560
Hadley v. Baxendale (1854), 659American Law Institute, 665, 668Andrews, Neil, 211, 212arbitration agreements, 636arbitration clauses, 99, 215–16, 264, 349, 351Arden LJ, 147, 410–11
Collier v. P & MJ Wright (Holdings) Ltd (2007), 156, 158
Devenish Nutrition Ltd v. Sanofi-Anetis SA (2008), 590, 595
Egan v. Static Control Components (Europe) Ltd, 393Grand Metropolitan plc v. William Hill Group
(1997), 394–5, 420, 411Square Mile Partnership Ltd v. Fitzmaurice
McCall Ltd (2006), 393Asquith LJ
Combe v. Combe (1951), 129Victoria Laundry (1949), 560
assignment, 225–32assignment of patents and copyright, 228distinction from other doctrines, 231–2effects of, 226equitable assignment, 225, 228extent of the assigned right, 228–30
Birks, P. B. H., 312, 324, 589Blackburn, Lord, 245
Foakes v. Beer (1884), 147Smith v. Hughes (1871), 84Taylor v. Caldwell (1863), 377, 448, 449
Blair J, Styrdon v. Vendside Ltd (2009), 363Blake principle, 520–1Blanesburgh, Lord, Bell v. Lever Bros Ltd (1932),
283, 284–5Bowen LJ
Carlill v. Carbolic Smoke Ball Co. (1893), 67, 68‘The Moorcock’ (1889), 361–4Re Casey’s Patents (1892), 132–3Smith v. Land and House Property Co. (1884),
239Bowsher J, Pegler Ltd v. Wang (UK) Ltd (2000), 436Bramwell J
Boulton v. Jones (1857), 304Household Fire Insurance Co. v. Grant (1879), 56
Branson J, Warner Bros Pictures Inc. v. Nelson (1957), 533
breach of contract, 8, 127, 253, 475–515anticipatory breach, 485–8
attempted, 519impossibility of culpable self-inducement,
486–8rights of the innocent party, 488by stating unwillingness to perform, 485–6
breach of condition or breach of warranty, 502conditions (promissory obligations), 476
‘condition’ not always used in a technical sense, 493–4
courts’ construal of, 476downgrading of conditions, 494–5general construction of the contract, 492–3importance of timing, 499intermediate or innominate terms, 499–501interpretation to avoid an unreasonable result,
495–6judicial decisions on, 491–2parties agree that a term is a condition, 492repetitive breach in continuing contracts, 505statutory control in commercial sales, 502–4termination clauses, 497terms construed as conditions, 492when a term is a condition, 491–3
consensual remedies for, 599–617deposits, 612–17penalty doctrine, 601–11relief against forfeiture of money instalments,
612definition, 475
the entire obligation rule, 513–15express right to terminate, 479–82forms of, 476
anticipatory breach, 476, 477bad performance, 478breach by non-feasance or misfeasance, 476breach of promise not to act, 479deliberate breach, 484dilatory performance, 476, 478explicit anticipatory breach, 478inaction or ‘no-show’ on the day of
performance, 478inferred anticipatory breach, 478renunciation, 479renunciation on the day of performance, 476,
477repudiation of performance, 478repudiatory breach, 479, 480, 524rights of the innocent party, 479–82
implied rights to cancel, 479–82judicial remedies for. see judicial remedies for
breach of contract, 519–97jurisdiction of, 506liquidated damages and deposits, 599–617mistake and, 279penalty doctrine, 599, 601–11process of termination for breach, 507–10
decision effected by conduct or silence, 509–10equivocal exercise of the right to terminate,
509new opportunity to terminate, 509rights of the innocent party, 507
and rescission for misrepresentation, 263–5relief against forfeiture of proprietary or
possessory interests, 505–7remedies available, 8, 519–97, 599–617remoteness and ‘scope of duty’ tests, 566–8renunciation on the day of performance, 488–90
invocation of a wrong reason, 488mistaken but good faith statement that non-
performance is justified, 488–90right to cancel without breach, 479–82and the right to refuse performance, 477, 482rights of the innocent party, 476, 479–82
binding nature of election, 508need to pause for thought, 509no third choice, 508nominal or substantial damages, 484restricted entitlement to terminate, 484–5right to elect, 477, 507, 524
strict or non-strict obligations, 482–4termination for, 477, 485, 490–505, 510–13
termination of contracts of indefinite duration classification of promissory terms, 491–2construction of the contract, 492–3rights of the innocent party, 492a term is construed as a condition, 492when a term is a condition, 491–3
Chartbrook Ltd v. Persimmon Homes Ltd (2009), 396, 414, 415
Howard Marine and Dredging Co. Ltd v. A. Ogden & Sons (Excavations) Ltd (1978), 258
Scally v. Southern Health Board (1992), 360–1, 375
Bridlington Agreement, 366Briggs J, 395
Chartbrook Ltd v. Persimmon Homes Ltd (2009), 402
Brightman J Hart v. O’Connor, 339Overbrooke Estates v. Glencombe Properties Ltd,
266Wrotham Park case, 592
Brown, Sir Stephen P, Taylor v. Bhail (1996), 642Brown LJ, Simon, Economides v. Commercial Union
Assurance Co. plc (1998), 240Browne-Wilkinson, Lord
CIBC Mortgages plc v. Pitt (1994), 322, 325Coral Leisure Group Ltd v. Barnett (1981), 631Johnstone v. Bloomsbury Health Authority (1992),
375Multiservice Bookbinding Ltd v. Marden (1979),
334Nash v. Halifax Building Society (1979), 628Panatown case (2001), 201, 202Smith New Court case, (1997), 254–5, 257–8Swiss Bank Corporation v. Lloyd’s Bank Ltd
(1979), 222Brownsword, R., 664Buckley LJ
ASLEF case (1972), 359Bankers Insurance Co. Ltd v. South (2003), 441Thomas Bates Ltd v. Wyndham’s (Lingerie) Ltd
(1981), 414Buckmaster, Lord, May & Butcher v. R (1934), 99Burrows, Andrew
distinction between common law and equity, 12duress, 308, 318injunctions, 537interpretation of written contracts, 387, 401liquidated damages, 609, 610mitigation principle, 580offer and acceptance, 56restitution, 23, 594Rice case, 498specific performance, 531, 532, 536third party rights, 212unilateral errors, 413
Burton J Durham v. BAI (Run Off) Ltd (2008), 166–7M & J Polymers Ltd v. Imerys Minerals Ltd
(2008), 605, 606Stocznia Gdynia SA v. Gearbulk Holdings Ltd
and agreements already substantially settled, 92compromise agreements, 110contracts for regular supply of goods, 101–4and courts’ regulation of parties’ entitlements
and obligations, 94–5establishing price in contracts for the sale of
goods, 98–110parties manifesting an intention to displace a
contract provision, 104–10substantial dealings for regular supply of
and the intent to create legal relations, 90, 96–8and the need for objective guidelines for
adjudication, 91–2negotiation exclusively reserved to the parties,
111no specific performance of vague clauses,
112–13objective criteria for recognition of contractual
rights, 93–6and parties’ right to determine the agreement,
92and supposed agreements already partly
performed, 92third party resolution of terms, 111–12
Chadwick LJ BCCI v. Ali (2000), 86EA Grimstead & Son Ltd v. McGarrigan
(1988–99), 267Euro London Appointments Ltd v. Claessens
International Ltd (2006), 605Peekay Intermark Ltd v. Australia and New
Zealand Banking Group Ltd (2006), 268Watford Electronics v. Sanderson CFL Ltd (2001),
267, 268, 269, 433–4WWF-World Wide Fund for Nature v. World
Wrestling Federation Entertainment Inc. (‘No. 2’) (2007), 593–4
Chen-Wishart, M., 498Cheshire, Fifoot and Furmston, 56Chin, N. Y., 312, 324civil law jurisdictions, 20, 126, 396, 660Civil Procedure Rules, 34, 52, 393, 666Clark J, Thames Valley Power Ltd v. Total Gas &
Power Ltd (2005), 35Clarke, Christopher J
Birmingham City v. Forde (2009), 131, 143British Steel Corporation v. Cleveland Bridge and
Engineering Co. (1984), 106–8RTS Flexible Systems Ltd v. Molkerei Alois Müller
GmbH (2009), 105, 106Clarke MR, Sir Anthony (now Lord Clarke)
Assicurazioni Generali SpA v. Arab Insurance Group (BSC) (2003), 246, 247, 272
Associated British Ports v. Ferryways NV (2009), 180, 348
Dolphin Maritime & Aviation Services Ltd v. Sveriges Angfartygs Assurans Foening (2009), 209
Mediterranean Salvage & Towage Ltd case (2009), 372, 373
Platform Funding Ltd v. Bank of Scotland plc (2008), 483
RTS Flexible Systems Ltd v. Molkerei Alois Müller GmbH (2009), 43–4
Clauson J, With v. O’Flanagan (1936), 242, 244Clive, Eric, 398, 655Clyde, Lord
Panatown case (2001), 201, 202Royal Bank of Scotland v. Etridge (No. 2)
(2002), 325Cockburn J, Frost v. Knight (1872), 486codification, 665–72
nature and benefits of, 665–6Coke, Lord, Pinnel’s Case (1602), 149Collins, Hugh, 14, 651, 663, 665Collins LJ, Lawrence
Chartbrook Ltd v. Persimmon Homes Ltd (2009), 396, 397, 399
Conlon v. Simms (2006), 272James Hay case (2005), 412Michael Wilson & Partners Ltd v. Emmott
(2008), 358Sigma case, 393–4
Colman J Cable & Wireless plc v. IBM UK (2002), 29, 34,
348, 595–6JSC Zestafoni G Nikoladze Ferroalloy Plant v.
accelerated payment, 149accelerated payment at creditor’s request, 149Common law rule on, 146–53debt is disputed in good faith, 150fresh consideration, 149–50, 151interim or final, 138objections to the common law rule, 147–9part-payment by a third party, 149–50part-payment by cheque, 150–1practical benefits, 147promissory estoppel, 153–62proprietary estoppel, 162–5summary, 161–2waiver and forbearance, 153
doctrine of, 125–9functions of, 126, 127
elements of, 129–31formality, 121–5function of, 192gratuitous promises to reduce the level of a
and intent to create legal relations, 183and ‘just price’, 117, 131liability in tort for negligence, 127–9‘marriage consideration’, 127nature of, 117past consideration, 118, 131–3pre-existing duty owed to a third party, 118, 137pre-existing statutory or public duty, 118, 133–7promises to pay more for the same performance,
119reliance, 158in the ‘soft law’ codes, 654
sufficient reliance, 158and the variation of contract, 138–9and variation of contracts, 118
Contract Code (draft), 667contract law, 13
accessibility in a global market, 670–2assignment, 225–32breach of contract, 8, 127, 253, 475–515
certainty, 8, 79, 89–113, 341characteristics of English, 3–6common law and equity, 12–13consideration, 8, 117–69contexts where statute and common law
intertwine, 666contexts where statute predominates, 666doctrines of, 10, 664
breach of contract, 8frustration, 9implied terms, 8mistake, 8privity of contract, 9substantial performance, 514
dominance of case law, 666problems with the case law technique,
668–9duress, undue influence and unconscionability,
307–41estoppel, 117–69and EU law, 14, 438, 670exclusion clauses, 419–42exercise of reasonable care, 10freedom of contract, 6–7frustration, 9, 445–73and good faith, 13–14illegality and public policy, 621–45implied terms, 353–77intent to create legal relations, 8, 171–84interpretation and rectification of written
contracts, 379–417misrepresentation, 235–73mistake, 8, 275–304the objective principle, 7offer and acceptance, 8, 37–87precision of, 5pre-contractual phase, 19–35predictability, 79, 317, 664principles of, 4privity of contract, 188and restitution, 11–12rules and principles, 4
novation, 231for personal services, 520pre-contractual phase, 19–35, 386prohibitory clauses, 225rescission ab initio, 12, 485, 510–13for the regular supply of goods, 101–4repeat transactions, 49rights and obligations of third parties, 9termination clauses, 497termination of, 10terms, 345–51for transfer of movable property, 520, 531unilateral, 7, 39
extravagant and unconscionable, 599foresight and contemplation, 658limiting factors
causation, 542, 554–5contributory negligence, 542defendant’s choice or discretion in performing
contract, 543impecuniosity, 542litigation costs and damages, 542–3mitigation, 542remoteness, 542, 556–70scope of duty test, 570–2
limits on damages claims, 554–86liquidated damages, 599–617
attractions of, 601and the penalty doctrine, 601–11punishment is not the aim, 611
loss of bargain damages, 253loss of chance claims, 550–1mitigation principle, 573–82
application of, 577, 582and claims for debt, 582and contributory negligence, 582–6and cost of cure damages, 581–2duty to endeavour to reduce or eliminate loss,
574–7examples, 575–6mitigation in face of hazardous breach, 577–8mitigation in fact achieved, 579–81recovery of extra loss for attempt to mitigate,
commercial parties, 605–6consequence of finding a penalty, 608–9critique of, 610–11date of assessment, 603equality of bargaining power, 606fundamental statement of, 601–3invalid liquidated damages clause not a cap,
609–10need for breach as between payor and payee,
604–5‘no deterrent purpose’ test, 606–7objective test, 603penalty in the context of money obligations,
607–8rejoinder to the critique, 611single sum payable, 607types of clauses covered by, 605valid liquidated damages clause acts as a cap,
609reliance loss claims, 519, 545remoteness
cases on, 568–70ordinary course of things, 569overlapping claims in tort and contract,
569–70in the ‘soft law’ codes, 657–9and ‘scope of duty’ tests, 566–8special information, 569
in the ‘soft law’ codes, 657, 658, 659tort claims for loss of business opportunities,
Beswick v. Beswick (1968), 192Butler Machine Tool Co. Ltd v. Ex-Cell-O
Corporation (England) Ltd (1979), 60–2Charles Rickards Ltd v. Oppenhaim (1950), 152Combe v. Combe (1951), 129, 159D & C Builders v. Rees (1966), 151, 162, 320–1Enderby Town FC Ltd v. Football Association
(1971), 630Entores Ltd v. Miles Far East Corporation (1955),
44–5Errington v. Errington & Woods (1952), 69, 70‘The Eugenia’ (1964), 377, 450, 453, 457Federal Commerce & Navigation Co. v. Molena
Alpha Inc. (1979), 489fundamental breach doctrine, 426Gibson v. Manchester CC (1979), 42Gould v. Gould (1970), 173H Parsons (Livestock) Ltd v. Uttley Ingham & Co.
Ltd (1978), 563‘The Hansa Nord’ (1976), 500High Trees case (1947), 119, 154–5, 156Howard Marine and Dredging Co. Ltd v. A. Ogden
& Sons (Excavations) Ltd (1978), 249, 258inequality of bargaining power, 340Lloyd’s Bank v. Bundy (1975), 308, 325–6, 340Morris v. C W Martin & Sons Ltd (1966), 223Rose v. Pim (1953), 410Schuler (L) AG v. Wickman Machine Tool Sales
Ltd (1974), 493–4Scruttons v. Midland Silicones (1962), 217shared mistake, 291Solle v. Butcher (1950), 289, 290, 293, 300Staffordshire Area Health Authority v. South
Staffordshire Waterworks Co. (1978), 482Stockloser v. Johnson (1954), 612Ward v. Byham (1956), 135, 136Williams v. Williams (1957), 135, 136–7
dependence, relationships of, 329deposits, 612–17
common law jurisdiction to control excessive deposits, 616–17
compensation over and above the amount of the deposit, 613
customary levels, 616failure to pay, 614forfeiture of, 613sources of relief, 614–16
statutory relief to order repayment in context of land transactions, 614
Devlin, Lord, 310Heaven & Kesterton Ltd v. Etablissements
Francois Albiac et Cie (1956), 575
Hedley Byrne & Co. v. Heller (1964), 128Ingram case (1961), 300–1Parker v. Clark (1960), 173, 178–9St John Shipping Corporation v. Joseph Rank Ltd
(1957), 629Universal Cargo Carriers Corporation v. Citati
(1957), 485, 486Dilhorne, Viscount, New Zealand Shipping v.
Johnson v. Johnson (1989), 601–3‘The Super Servant Two’ (1990), 465
Diplock, Lord Antaios Cia Naviera SA v. Salen Rederierna AB
(1985), 388, 390, 498–9Gibson v. Manchester CC (1979), 42‘The Hannah Blumenthal’ (1983), 78Harvela v. Royal Trust Co. of Canada (1986), 76Hongkong Fir case (1962), 493, 500, 501Photo Production Ltd v. Securicor Transport Ltd
(1980), 426Pioneer Shipping Ltd v. BTP Tioxide Ltd (‘The
Nema’) (1982), 384Robophone case (1996), 610
dispute resolution, adjudicative standards for, 91Donaldson QC, David, Adam Opel GmbH v. Mitras
Automotive UL Ltd (2008), 320Draft Common Frame of Reference, 650Dubai International Financial Centre, 65, 126, 397,
667, 668Duke LJ, Balfour v. Balfour (1919), 176Dunedin, Lord
Dunlop Pneumatic Tyre Co. v. New Garage and Motor Co. Ltd (1915), 601–2, 607
Dunlop Pneumatic Tyre Co. Ltd v. Selfridge & Co. Ltd (1915), 125, 193
May & Butcher v. R (1934), 99duress, 307, 308; see also undue influence,
unconscionabilitycomponents of, 310–11
causal impact of the pressure, 314–15implicit or overt pressure, 311improper nature of the threat, 312–13lawful threat or pressure, 313objective potency of pressure, 314R v. Her Majesty’s Attorney-General for
England and Wales (2003), 313–14target of threat and maker of the threat, 312unlawful threat or pressure, 312
defence of affirmation, 316nature of contractual invalidity, 315–16predictability of the law, 317and procedural unfairness, 339and renegotiation of contracts, 316–18
commercial pressure and renegotiated agreements, 320
commercial pressure during, 319–20ways in which it can occur, 316
substantially unfair bargain, 318Dyson J
Crossley v. Faithful & Gould Holdings Ltd (2004), 357, 361
DSND Subsea Ltd v. Petroleum Geo-Services ASA (2000), 312, 317
Paragon Finance plc v. Nash (2002), 369Tekdata Intercommunications v. Ampenol Ltd
limited to situations relating to land, 165and remedial discretion, 163
by representation, 121, 161, 162, 165, 166, 167
res judicata, 168–9and ‘subject to contract’, 174types of, 167–9
European Code of Private law, 665European Court of Justice, 349, 350, 650European Union law, 14, 438, 670
civil code, 650, 651Consumer Protection from Unfair Trading
Regulations 2008, 14consumer protection legislation, 425draft European Code of Contracts, 650EU Directive on Unfair Commercial Practices,
14and jurisdiction and arbitration clauses, 349and Unfair Terms in Consumer Contracts
Regulations 1999, 14ex turpi causa non actio oritur, 621, 625, 626exclusion clauses
and the Consumer Contracts Regulations 1999, 437–42
and fraud, 425incorporation of, 419, 420–4
based on trade usage, 424case law on, 421–4the clause is in a document with apparent
contractual force, 424by a consistent course of dealing between the
parties, 424signature effective for, 422–3the test, 420–2
interpretation of contra proferentem, 425and liability for fraud, 419and the Misrepresentation Act 1967, 426–7notice, 419principles of construction, 425and statutes, 420strict interpretation at common law, 425–6
respect for clear wording, 426types of, 419and the Unfair Contract Terms
Act 1977, 427–37business-to-business dealings, 434case law on, 433–7reasonableness test, 434
and the Unfair Terms in Consumer Contracts Regulations, 437–42
exploitation. see unconscionability
fair dealing, 20, 72, 375fairness, subjective and objective determination
of, 28Fauvaraque-Cosson, Bénédicte, 650Feltham, J. D., 195
continuity of acts, 374criteria for recognition, 373–4
and frustration, 377and good faith, 355, 375–7and interpretation of written contracts, 407and mistake, 377PECL, Principles of European Contract Law, 355and rectification, 409terms implied in fact, 353–5, 361–73
business efficacy test, 354, 361–4, 365, 371contamination of ‘policy factors’, 366–7criteria for finding, 361custom or trade usage, 355, 373–4financial services cases, 367–8lender’s terms, 368–70Moorcock test, 354need for restraint, 354objective bystander test, 364, 370offer and acceptance, 368, 371officious bystander test, 354, 364–6, 372
terms implied in law, 353, 356–61, 367arbitration, 358
confidentiality, 358contractual duty of care, 358damaging the future prospects of employees,
359–60employment cases, 358–61judicial precedent, 354Liverpool City Council v. Irwin, 357overworking young doctors, 359pensions, 360–1
and the tort of negligence, 374–5UNIDROIT Principles of International
Commercial Contracts, 355and written contracts, 371–3
agreed compensation, 540assessed at date of breach, 541causation, 542finality, 542limiting factors, 542–3limits on damages claims, 554–86nominal damages, 540protection of expectations and indemnification
of reliance loss, 540–1purpose of, 541remoteness, 542substantial damages, 540true compensation, 540types of money claims, 544
declarations, 595negative declarations, 595
injunctions, 530, 537–9indirect compulsion, 538–9
mandatory injunctions, 538prohibitory relief, 538
interest on money claims, 596–7restitutionary claims. see restitutionspecific performance, 530–7
availability of, 532, 534and contempt of court, 530, 536Co-operative Insurance Services v. Argyll
Stores Ltd (1998), 534–7criteria for, 531danger of oppression of the defendant, 536discretion about, 532disproportion between harm to defendant and
loss to claimant, 536and employment contracts, 532equitable remedy of, 535mitigation principle, 537punishment is not the aim, 535scarce goods, 531scope of, 537supervision of an order and the obligation to
achieve a result, 429and transfer of land, 536
stays upon legal proceedings, 595–6types of, 519–21
‘account of profits’, 12, 520–1, 588action for debt, 519damages, 519–20injunctions, 520specific performance, 520
just price (iustum pretium), 117, 131
Kay LJ, Maurice, Chief Constable of the Greater Manchester Police v. Wigan AFC (2008), 134–5
Kenyon, Lord Cutter v. Powell (1795), 513Harris v. Watson (1791), 141
Kerr LJ B & S Contracts & Design Ltd v. Victor Green
Publications Ltd (1984), 319Dean v. Ainley (1987), 550‘The Karen Oltmann’ (1976), 398–9, 402‘The Odenfeld’, 528‘The Siboen and the Sibotre’ (1976), 316, 317, 320
Kilbrandon, Lord, Schuler (L) AG v. Wickman Machine Tool Sales Ltd (1974), 495
Kirby J, Koomphahtoo Local Aboriginal Land Council v. Sanpine Pty Ltd (2007), 500
Latham LJ, Primavera v. Allied Dunbar Assurance plc (2002), 580
Leggatt LJ, Johnstone v. Bloomsbury Health Authority (1992), 375
Leveson LJ, Avraamides v. Colwill (2006), 207Lewison J
Re Griffiths, 295Thompson v. Foy (2009), 321
Lightman J, 392Inntrepreneur case (2000), 267Malcolm v. Chancellor, Masters & Scholars of the
University of Oxford (1994), 97Lindley LJ
Allcard v. Skinner (1887), 323, 325Nottingham Patent Brick & Tile Co. Ltd v. Butler
(1886), 239Liu, Q., 573Lloyd Lord
‘The Alaskan Trader’ (1984), 527Business Environment Bow Lane Ltd v.
Deanwater Estates Ltd (2007), 251Investors Compensation Scheme Ltd v. West
Bromwich Building Society (1998), 389Reichman v. Beveridge (2006) 525Ruxley Electronics Ltd v. Forsyth (1996), 540,
547, 548Stour Valley Builders v. Stuart (2003), 150
Longmore LJ Collier v. P & MJ Wright (Holdings) Ltd (2007),
158–9Devenish Nutrition Ltd v. Sanofi-Anetis SA
(2008), 595Maple Leaf Macro Volatility Master Fund v.
Rouvroy (2009), 122–3Petromec Inc. etc. v. Pertoleo Brasileiro SA
(2005), 24, 31–2Soulsbury v. Soulsbury (2007), 66, 70
Loreburn, Lord, Tennants (Lancashire) Ltd v. C S Wilson & Co. (1917), 456
Lugano Convention, 349, 350Lush J
Currie v. Misa (1875), 125Easton v. Hitchcock (1912), 362Horwood v. Millar’s Timber and Trading Co., Ltd
(1916), 634Stevenson Jacques & Co. v. McLean (1879), 57–8
Macdonald, Elizabeth, 318MacKinnon LJ
Chapelton v. Barry UDC (1940), 424Shirlaw v. Southern Foundries (1926) Ltd (1939),
354, 363–4, 368MacMillan, Catherine, 285, 290, 300Mance, Lord
Baird Textile Holdings Ltd v. Marks & Spencer plc (2001), 181, 184
Charter Reinsurance Co. Ltd v. Fagan (1997), 392, 393
Experience Hendrix LLC v. PPX Enterprises (2003), 591
Friends Provident Life & Pensions Ltd v. Sirius International Insurance Corp (2005), 512
Hall v. Woolston Hall Leisure (2001), 640Huyton SA v. Peter Cremer GmbH & Co. (2003),
317–18LauritzenCool AB v. Lady Navigation Inc. (2005),
539The Office of Fair Trading v. Abbey National plc
(2009), 439–40OT Africa Lines v. Vickers plc (1996), 81, 292–3Sempra Metals Ltd v. Inland Revenue
Commissioners (2007), 1, 557, 597Mansfield CJ, Holman v. Johnson (1775), 626Martin, Sir Andrew V-C, 91Martin B, Pearce v. Brooks (1866) 668May LJ, Business Environment Bow Lane Ltd v.
McLaughlan, D. W., 299, 400, 415McMeel, G., 382, 406McNair J, Andrews v. Hopkinson (1957), 252mediation agreements, 35, 124–5, 348Megarry J
Cresswell v. Potter (1978), 336Hounslow LBC v. Twickenham Garden
Developments Ltd (1971), 525Tito v. Waddell (No. 2) (1977), 546–7
Megaw LJ Alan v. El Nasr (1972), 153Edwards v. Skyways Ltd (1964), 179Thornton v. Shoe Lane Parking (1971), 421
Mellish LJ, Parker v. South Eastern Railway Co. (1877), 421
Millett, Lord Alec Lobb (Garages) Ltd v. Total Oil GB Ltd
(1983), 334, 335–6Allied Maples Group v. Simmons & Simmons
(1995), 551Freeman v. Niroomand (1996), 548Gibbon v. Mitchell (1990), 295Hurst v. Bryk (2002), 512Little v. Courage (1995), 24, 27National Commercial Bank (Jamaica) Ltd v.
Hew (2003), 331Panatown case (2001), 204Shogun Finance Co. Ltd v. Hudson (2003), 278,
300, 302Taylor v. Bhail (1996), 642
misrepresentation, 235–73and breach of contract, 510–13and coercion, 331–2collateral warranties
and the common law privity problem, 292and the parol evidence rule, 251–2
compensation, 235for breach of contract, 253deceit claims and ‘income losses’, 255–6loss of bargain damages, 248, 253under the Misrepresentation Act 1997, 253tort of deceit, 253–6
criteria for finding ‘contractual assurances’ importance to the representee, 249independent verification, 250need for independent verification negatived,
250objective commitment by the maker of the
statement, 249obvious importance, 249relative skill, knowledge and expertise of the
parties, 250
statement of fact versus statement of future fact, 250
damages under section 2(1) of the Misrepresentation Act 1967, 256–60
deceit and fraud, 256–9defences to Section 2(1) claims, 259–60‘fiction of fraud’, 257principal liable but not agent, 259
duties to disclose, 236, 270–3qualifications, 271
elements of, 236–48falsity, 241–2persons involved, 241pre-formation, 241reliance, 242requirement of materiality, 242statement or conduct, 238–41
exclusion clauses consensual basis of non-reliance clauses, 268entire agreement clauses, 267and the Misrepresentation Act 1967,
265–70non-consensual basis of non-reliance clauses,
267–8non-reliance clauses, 267non-reliance clauses and statutory control,
correction, 247decisive influence, 246–7if the statement is fraudulent, 247–8and inducement, 247need for, 244–5relevance of materiality, 245–6representee can omit to check, 247
rescission ab initio, 237, 260–3, 512bars to rescission, 262and compensation for breach, 264discretion to withhold, 262–3equitable bars to, 236indemnity, 261non-fraudulent misrepresentation, 262–3and termination for breach, 263–5
statements becoming terms or collateral warranties, 248–52
ICI Chemical & Polymers Ltd v. TTE Training Ltd (207), 383
Peekay Intermark Ltd v. Australia and New Zealand Banking Group Ltd (2006), 268
Stocznia Gdynia SA v. Gearbulk Holdings Ltd (2009), 479, 480–1
Morgan J, 573Berkeley Community Villages Ltd v. Pullen (2007),
33, 377Morris, Lord
C Czarnikow Ltd v. Koufos (‘The Heron II’) (1969), 561
Société Co-operative Suisse case (1946), 459Ward v. Byham (1956), 135
Morritt, Sir Andrew V-C Business Environment Bow Lane Ltd v.
Deanwater Estates Ltd (2007), 251Equitable Life Assurance Co. Ltd v. Hyman
(2002), 368Esso Petroleum Ltd v. Niad Ltd (2003), 591Spice Girls Ltd v. Aprilia World Service BV
(2002), 244, 245Moss QC, Gabriel, Internet Broadcasting Corp Ltd v.
MAR LLC (2009), 484Moulton, Lord, Heilbut, Symons case (1913), 249Mummery LJ
Anglo Petroleum Ltd v. TFB (Mortgages) Ltd (2007) 7, 640
Horsfall v. Haywards (1999), 574Pesticcion v. Huet (2004), 328
Mustill Lord, 508arbitration, 668Charter Reinsurance Co. Ltd v. Fagan (1997),
392, 393, 495, 496FC Shepherd v. Jerrom (1987), 448, 461‘The Golden Victory’ (2007), 573Hussey v. Eels (1990), 580Lombard North Central plc v. Butterworth
(1987), 499Malcolm v. Chancellor, Masters & Scholars of the
University of Oxford (1994), 96Ruxley Electronics Ltd v. Forsyth (1996), 548
Neill, Lord, 27–8Neill, Sir Brian, Stocznia Gdynia SA v. Gearbulk
Holdings Ltd (2009), 480Neill LJ, Thake v. Maurice (1986), 87Nelson J
Thames Trains Ltd v. Adams (2006), 85Weldon v. GRE Linked Life Assurance Ltd (2000),
366Neuberger, Lord
Kinch v. Ballard (1999), 56Kyle Bay Ltd v. Underwriters etc. (2007), 283Liverpool CC v. Walton (2002), 92Tennaro case (2003), 615Thorner v. Major (2009), 385
Nicholas, Lord, Royal Bank of Scotland v. Etridge (No. 2) (2002), 326
Nicholls, Lord Attorney-General v. Blake (2001), 589–90, 592Gran Gelato Ltd v. Richliff Ltd (1992), 257Grant v. Bragg (2009), 259Jobson case (1989), 607Royal Bank of Scotland v. Etridge (No. 2) (2002),
324, 327Sempra Metals Ltd v. Inland Revenue
Commissioners (2007), 597Shogun Finance Co. Ltd v. Hudson (2003), 300Thompson v. Foy (2009), 321
Nolan, Donal, 46Nolan LJ, Schering Agrochemicals Ltd v. Resibel
NVSA (1992), 577Nourse LJ
Alpenstow Ltd v. Regalian Properties Ltd (1985), 174
Barclays Bank plc v. Fairclough Building (1995), 583
Hammond v. Osborn (2002), 324Thake v. Maurice (1986), 87Warren v. Mendy (1989), 539
objective principle, 7, 39, 275, 302exceptions to, 294
and interpretation and rectification of written contracts, 382, 386
and offer and acceptance, 78awareness of the object of the offer, 80and mental incapacity, 79
rationale for, 78and ‘reasonableness’, 86unilateral errors, 86, 275
Occam’s Razor, 566, 571offer and acceptance, 8, 37–87
posting before discovering attempted revocation, 52
acceptance in unilateral contracts, 66–70time of acceptance, 69
battle of the forms, 59–63amalgamation of competing terms, 59both sets of shots, 61declaration of no contract, 59‘first shot’ theory, 61implied terms, 59‘last shot’ theory, 59, 60, 61, 62reasonable implication, 61in the ‘soft law’ codes, 654
cancellation of the offer, 38counter-offers, 37, 57–9
re-affirmation of the original offer, 58rejection of the counter-offer, 58
course of dealing between the parties, 49and the intent to create legal relations, 172, 184and invitations to treat, 37, 39–41
advertisements, 40–1goods on display, 41
and the objective principle, 39, 78acquiescence in another’s belief, 84awareness of mistake as to quality, value or
nature of subject matter, 82awareness of mistaken presentation of terms,
80awareness of mistaken presentation or
acceptance, 81awareness of the object of the offer, 80and mental incapacity, 79misleading presentation or acceptance of
terms, 80rationale for, 78and ‘reasonableness’, 86situations where a valid contract exists, 79
postal acceptances, 50–7acceptor’s second thoughts, 56–7appropriateness of postal acceptance, 53–6delayed postal acceptance, 52–3e-mail, 51lost postal acceptance, 53‘manifest inconvenience and absurdity’, 55–6place of formation, 52posted rejection overtaken by acceptance, 57
postal rule, 38, 50–1, 54, 57process of, 42–50
acceptance and the problem of silence, 47–9conduct by offeree, 49–50‘cooling off’ periods, 47cross-offers, 44need for awareness of offer, 44notification of acceptance, 44–5postal acceptance, 45problem of equivocality, 47–8timing of acceptance (other than by post),
45–7revocation and termination of offers, 63–5
communicated rejection of offer, 65direct or indirect revocation of firm offers,
63–5lapse of time, 65reform of the firm offer rule, 64–5, 653
revocation of acceptance, 38silence as consent, 47–9
qualifications, 49–50silence by the party initiating a proposal, 49
tenders at common law, 72good faith in the process, 73obligations upon the invitor, 72
and unilateral contracts, 39Oliver J, Radford v. De Froberville (1977), 545, 546Ormrod LJ
‘The Hansa Nord’ (1976), 505Snelling v. John Snelling Ltd (1973), 205, 596
Orr LJ, H Parsons (Livestock) Ltd v. Uttley Ingham & Co. Ltd (1978), 562, 563, 570
O’Sullivan, Janet, 147Otton LJ, Duffen v. FRA BO SpA, (1998), 607
acceleration clauses, 608breach triggering liability, 603–4commercial parties, 605–6consequence of finding a penalty, 608–9in the context of money obligations, 607–8critique of, 610–11inequality of bargaining power, 606invalid liquidated damages clause not a cap,
609–10and liquidated damages, 601–11need for breach as between payor and payee,
604–5‘no deterrent purpose’ test, 606–7penalty in the context of money obligations,
607–8rejoinder to the critique, 611single sum payable, 607statement of the doctrine, 601–3time of assessment, 603
types of clauses covered by, 605valid liquidated damages clause acts as a cap,
609performance, 475–515; see also specific
performanceand acceptance, 66and good faith, 661part-performance, 92right to refuse, 477right to withhold, 482in the ‘soft law’ codes, 656vicarious performance, 226
Phillips, Lord Campbell v. Frisbee (2002), 511Great Peace Shipping Ltd v. Tsavliris Salvage
(International) Ltd (2002), 282, 289, 377, 451Lemenda Trading Co. Ltd v. African Middle East
Petroleum Co. Ltd (1988), 635The Office of Fair Trading v. Abbey National plc
(2009), 439Stone & Rolls case (2009), 1391, 626
Pill LJ, Gardner v. Marsh & Parsons (a firm) (1997) 621
Pollock, Sir Frederick, 125, 139Porter, Lord, Heyman v. Darwins Ltd (1942), 484–5,
486postal rule, 38, 50–1, 54, 57Potter LJ, Phillips v. Enron (1997), 28, 91–2pre-contractual phase of contract formation, 19–35
abortive negotiations, 19–20proprietary estoppel, 23unjust enrichment or restitutionary relief, 21–3
agreement to negotiate main contract in good faith, 25–6
agreements ancillary to a settled agreement, 30–4agreement to use reasonable endeavours to
obtain official permission, 30–1post-formation negotiation agreements, 31–3post-formation obligation to observe ‘utmost
good faith’, 33–4good faith in, 661, 663mediation agreements, 34–5
clauses requiring ‘expert determination’, 35negotiation agreements prior to formation of the
main contract, 23–30, 386agreement to negotiate in good faith, 24agreement to use best endeavours to reach
Chartbrook Ltd v. Persimmon Homes Ltd (2009), 414–15
common intention error, 409–10discretionary form of relief, 408elements of, 409and error of law, 412estoppel by convention, 409and extrinsic evidence, 408, 413in favour of a mistaken party, 413–14and formal transactions, 413and good faith, 416high standard of proof, 412and implied terms, 409main propositions, 407–9and mistake, 408parol evidence rule, 413scope for, 408settled formula is decisive, 410settled understanding but botched formula,
410–12third party rights, 416–17and unilateral error, 413–14, 415–16the user principle, 592–5
Reid, Lord A Schroeder Music Publishing Co. Ltd v.
Macaulay (1974), 638C Czarnikow Ltd v. Koufos (‘The Heron II’)
(1969), 561, 562‘The Heron II’ (1969), 556‘legitimate interest’ test, 527McCutcheon v. David MacBrayne Ltd (1964), 7,
78Schuler (L) AG v. Wickman Machine Tool Sales
Ltd (1974), 495White & Carter v. McGregor (1962), 375–6, 525,
526, 529Whitworth Street Estates (Manchester) Ltd v.
James Miller & Partners Ltd (1970), 387reliance, 158, 213, 242, 244–8, 544
case law, 568–70and scope of duty tests, 566–8in the ‘soft law’ codes, 657, 658, 659
Research Group on EC Private Law (Acquis Group), 650
restitution, 11–12, 22, 520–1, 586–95, 643–5account of profits, 592, 593based on unjust enrichment, 586Civil Law Reform Bill (draft), 596equitable account, 586
forms of, 12, 587–8compensation for loss of opportunity to grant
release of rights, 591disgorgement of gains made in breach of
contract, 12, 588–91money recovered for total failure of
consideration, 12, 586–7recovery in respect of goods or services, 12
and frustration, 587obligation to pay the reasonable market value, 19quantum meruit, 588, 641reduction of the amount for slow performance, 23remedies available, 11
equitable account, 11sufficient, 158
the user principle, 591restraint of trade, 340, 637–8Reynolds, F. M. B., 573Rix LJ
Avon Insurance plc v. Swire Fraser Ltd (2000), 241, 257
Sales J, BMS Computer Solutions Inc. v. AB Agri Ltd (2010), 472
Salmon, Lord Hongkong Fir case (1962), 500Jones v. Padavatton (1969), 178Liverpool City Council v. Irwin (1977), 357
Sankey J, Horwood v. Millar’s Timber and Trading Co. Ltd (1916), 634
Sargant J, Balfour v. Balfour (1919), 176Saville LJ
Alfred Toepfer International GmbH v. Itex Itagrani Export SA (1993), 487
Hughes v. Asset Managers plc (1995), 628Scarman, Lord
H Parsons (Livestock) Ltd v. Uttley Ingham & Co. Ltd (1978), 562, 563, 570
National Westminster Bank plc v. Morgan (1985), 325, 341
Tai Hing Ltd v. Liu Chong Hing Bank (1979), 375‘The Universe Sentinel’ (1983), 311, 312Woodar rule, 489
Scott, Lord BCCI v. Ali (2000), 86Cobbe v. Yeoman’s Row Management Ltd (2008),
163, 164, 165Equitable Life Assurance Co. Ltd v. Hyman
(2002), 368Farley v. Skinner (2001), 552R v. Her Majesty’s Attorney-General for England
and Wales (2003), 330Schering Agrochemicals Ltd v. Resibel NVSA
(1992), 577Scottish Law Commission, 667Scrutton LJ
Foley v. Classique Coaches (1934), 102Lens v. Devonshire Club (1914), 179Re Mahmoud and Ispahani (1921), 643Re Moore & Co. and Landauer & Co. (1921), 503Reigate v. Union Manufacturing Co.
(Ramsbottom) Ltd (1918), 364, 365Sedley LJ, Brennan v. Bolt Burdon (2003) 283Selborne, Lord, Scarf v. Jardine (1882), 231Shaw LJ, Howard Marine and Dredging Co. Ltd v.
A. Ogden & Sons (Excavations) Ltd (1978), 258
Simon, Lord Barton v. Armstrong (1976), 315BP Refinery (Westernport) Pty Ltd v. Shire of
Hastings, 365British Movietonews Ltd v. London District
Cinemas (1952), 456‘The Dynamic’ (2003), 526, 528
HHR Pascal BV v. W2005 Puppett II BV (2009), 390
National Carriers Ltd v. Panalpina (Northern) Ltd (1981), 451
New Zealand Shipping v. Satterthwaite (‘The Eurymedon’) (1975) C, 219
Rainy Sky case (2010), 391Simpson, Brian, 590Singleton J, Hartog v. Colin & Shields (1939), 81Slade LJ
Agip SpA v. Navigazione Alta Italia SpA (‘The Nai Genova’) (1984), 413
BCCI v. Aboody (1990), 321Smith, Prof. Sir John, 285–6Smith LJ
Maggs v. Marsh (2006), 387Maple Leaf Macro Volatility Master Fund v.
Rouvroy (2009), 42–3, 78Office of Fair Trading v. Abbey National plc
(2009), 604Pitts v. Jones (2007), 130
‘soft law’ contract law codes, 4, 59–60, 649–72acceptance rules, 653–4battle of the forms, 654codification, 665–72consequences of breach of contract, 659consideration, 654contributory negligence, 657damages, 657and English contract law, 652–9firm offer rule, 653good faith, 653interpretation of written contracts, 396mistake, 292, 655performance, 656remoteness of damage, 657–9specific performance, 657supervening difficulty, 655
Somervell LJ Errington v. Errington & Woods (1952), 69Stockloser v. Johnson (1954), 612
specific performance, 12, 112–13, 198–9, 210, 520, 530–7
for breach of contract, 520denial of in frustration, 473limits on, 520and mistake, 275, 293–4in the ‘soft law’ codes, 657
Spencer, John, 423Staughton LJ
Assicurazioni Generali SpA v. Arab Insurance Group (BSC) (2002), 246–7
Thankerton, Lord, Hillas & Co. v. Arcos Ltd (1932), 93
Thesiger LJ, Household Fire Insurance Co. v. Grant (1879), 53
third party rights, 187–223actions brought by the promisee, 198–206
building contracts, 200–6damages, 199–200debt, 198specific performance, 198–9
the benefit of exclusion clauses, 217–21and the carriage of goods, 217, 219–20in common law, 187Contracts (Rights of Third Parties) Act 1999
arbitration clauses, 215–16clause permitting variable selection of third
party, 213common law rights of the promisee, 213–14damages, 210double compensation, 214–15exclusion of the Act by contracting parties,
215limitation of actions, 215manifestation of assent, 212–13‘master clause’ in favour of A and B, 213parallel third party rights of action, 214right of defence or set-off, 210–11specific performance, 210third party’s remedies, 209variation or rescission of the contract, 211–12
cost of cure, 202, 203, 204declarations, 205–6and the doctrine of privity, 190–4
assessment of the doctrine, 192–4and exclusion clauses, 194
exclusion clauses, 217–21and the Contracts (Rights of Third Parties) Act
joint promisees, 188, 194–5declaration of the trust, 195effects, 195–6joinder rule, 195
no third party burden principle, 189types of ‘burden’, 190
privity of contract and ‘burden’, 221–3bailment of goods ‘on terms’, 222inducing a breach of contract, 221–2injunction to prevent interference, 222nature of bailment, 223restrictive covenants affecting land, 222unlawful interference with a contract, 221–2
stay of proceedings, 205–6trusts of promises, 195–8
Thomas LJ, Sunrock Aircraft Corp v. Scandinavian Airlines Systems (2007), 550
Thorpe LJ, Rainy Sky case (2010), 391tort law
and contract law, 569–70damages, 253, 552–4deceit, 11, 246, 253–6, 553–4, 641duty of care, 359, 554inducing a breach of contract, 221–2and misrepresentation, 253negligence, 11, 127–9, 355, 374–5reasonable foreseeability, 558unlawful interference with a contract, 221–2
Toulmin J, Mirant Asia-Pacific Construction (Hong Kong) Ltd v. Ove Arup & Partners International Ltd (2007), 203–4
Toulson LJ Durham Tees Valley Airport Ltd v. bmibaby Ltd
(2010), 93–4Great Peace Shipping Ltd v. Tsavliris Salvage
(International) Ltd (2002), 286IFE Fund SA v. Goldman Sachs (2007), 240–1,
266–7LJ Korbetis v. Transgrain Shipping BV (2005),
52–3scepticism toward the scope of duty test, 565–6Supershield Ltd v. Siemens Building Technologies
FE Ltd (2010), 555, 556–7, 558, 562, 566–8, 571
Treitel, G. H., 57, 63, 71, 213, 263, 410BP Exploration Co. (Libya) Ltd v. Hunt (No. 2)
bar on considering pre-contractual negotiations, 394–401
in jurisdictions other than Britain, 396‘private dictionary’ exception, 398–401reasons for, 395–6
in a ‘commercial’ way, with sensitivity to business ‘common sense’, 388
consideration of background, 389consideration of business common sense, 390consideration of the ‘commercial purpose’,
background’, ‘context’, and its location in the relevant ‘market’, 388
contextual approach to interpretation, 388–9exclusion of previous negotiations, 389
High Court decisions on, 384
interpretation and implied terms, 407interpretation and rectification, 379–417interpretation to eliminate errors, 401–4
Chartbrook Ltd v. Persimmon Homes Ltd (2009), 403–4
reconstitutive interpretation, 401, 402–4natural and ordinary meaning of words, 390and the parol evidence rule, 405–7and questions of law, 383–5reasonableness, 389–90rules governing interpretation, 385–94and subsequent conduct of the parties, 387–8