LAWS1075 – Contracts league Revision Notes
LAWS1075 Revision Notes
Contents
Logic.................................................................................................................................................. 8
Express Terms – Identification (1)....................................................................................8
By Signature.............................................................................................................................. 8
I – THE EFFECT OF SIGNATURE...............................................................................8
L’Estrange v F Graucob Ltd [1934] 2 KB 394..........................................................8
II – EXCEPTIONS TO THE SIGNATURE RULE....................................................9
Curtis v Chemical Cleaning & Dyeing [1951] 1 KB 805....................................10
Toll (FGCT) v Alphapharm (2004) 219 CLR 165...................................................11
III – CRITICISM OF THE RULE................................................................................. 13
By Notice................................................................................................................................... 13
I – TIMING............................................................................................................................ 14
Oceanic Sun Line Special Shipping Company v Fay (1988) 165 CLR 197. 14
II – KNOWLEDGE/NOTICE........................................................................................... 16
Thornton v Shoe Lane Parking [1971] 2 QB 163..................................................17
III – UNUSUAL TERMS.................................................................................................. 19
Baltic Shipping Co v Dillon (“The Mikhail Lermontov”) (1991) 22 NSWLR
1.............................................................................................................................................. 20
By Course of Dealing.......................................................................................................... 21
Rinaldi & Patroni v Precision Mouldings (1986) WAR 131...............................22
Balmain New Ferry v Robertson (1906) 4 CLR 379............................................23
Express Terms – Identification (2).................................................................................. 24
Parol Evidence Rule............................................................................................................ 24
I – DETERMINING WHETHER A CONTRACT IS WHOLLY WRITTEN. 24
State Rail Authority of NSW v Heath Outdoor (1986) 7 NSWLR 170..........25
II – EXCEPTIONS TO THE PAROL EVIDENCE RULE....................................27
Hoyt’s v Spencer (1919) 27 CLR 133........................................................................28
Saleh v Romanous [2010] NSWCA 274....................................................................29
III – PRE-CONTRACTUAL STATEMENTS.............................................................31
Equuscorp v Glengallan Investments (2004) 218 CLR 271..............................33
JJ Savage & Sons v Blakney (1970) 119 CLR 435................................................34
Oscar Chess v Williams [1957] 1 WLR 370............................................................35
Dick Bentley Productions v Harold Smith (Motors) [1965] 2 All ER 65......36
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,LAWS1075 – Contracts league Revision Notes
Express Terms – Construction........................................................................................... 37
Principles of Construction............................................................................................... 37
Parol Evidence Rule............................................................................................................ 38
I – SURROUNDING CIRCUMSTANCES.................................................................38
Western Export Services v Jireh International [2011] HCA 45.......................39
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251
CLR 640............................................................................................................................... 41
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37
................................................................................................................................................. 41
II – APPLICATION OF PRINCIPLES........................................................................44
Royal Botanic Gardens and Domain Trust v South Sydney City Council
(2002) 240 CLR 45........................................................................................................... 44
Pacific Carriers v BNP Paribas (2004) 218 CLR 451..........................................46
Exemption Clauses............................................................................................................... 48
III – CONTRA PREFERENTUM.................................................................................. 48
Darlington Futures v Delco Aust (1986) 161 CLR 500.......................................48
IV – NEGLIGENCE............................................................................................................ 50
Davis v Pearce Parking Station (1954) 91 CLR 642............................................50
V – FOUR CORNERS........................................................................................................ 52
Thomas National Transport (Melbourne) Pty Ltd v May & Baker
(Australia) Pty Ltd (1966) 115 CLR 353..................................................................52
Implied Terms............................................................................................................................. 53
Implied In Fact....................................................................................................................... 54
Byrne v Australian Airlines; Frew v Australian Airlines (1995) 185 CLR
410......................................................................................................................................... 56
Codelfa Construction v State Rail Authority of NSW (1982) 149 CLR 33759
Implied In Law........................................................................................................................ 61
University of Western Australia v Gray (2009) 179 FCR 346..........................61
Implied From Custom......................................................................................................... 63
Con-Stan Industries of Aust v Norwich Winterthur Ins (Aust) (1986) 160
CLR 226............................................................................................................................... 63
Australian Consumer Law (ACL)...................................................................................... 64
Overview of ACL Provisions............................................................................................. 64
INTRODUCTION TO ACL.............................................................................................. 64
CHAPTER 2 – GENERAL PROTECTIONS.............................................................65
Part 2 – 1: Misleading or Deceptive Conduct (ss 18-19)........................65
Part 2 – 2: Unconscionable Conduct (ss 20-22)...........................................65
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,LAWS1075 – Contracts league Revision Notes
Part 2 – 3: Unfair contract terms (ss 23-28)..................................................66
CHAPTER 3 – SPECIFIC PROTECTIONS..............................................................69
Part 3 – 1: Unfair practices (ss 29-38)..............................................................69
Part 3 – 2: Consumer Transactions (ss 51-68)..............................................69
CHAPTER 5 – ENFORCEMENT AND REMEDIES (ss 218-287)...............71
Standard Form Contracting............................................................................................ 73
I – INTRODUCTION......................................................................................................... 73
II – COSTS AND BENEFITS OF STANDARD FORM CONTRACTS..........73
III – THE ROLE OF COMPETITION.........................................................................74
IV – MARKET FAILURE AND SOCIAL FORCES................................................75
Frustration................................................................................................................................... 76
Introduction to Frustration............................................................................................ 76
I – THE TEST FOR FRUSTRATION.......................................................................... 76
II – OTHER TESTS PROVIDED IN EARLIER THEORIES.............................77
Taylor v Caldwell [1863] EWHC QB J1.....................................................................77
Krell v Henry [1903] 2 KB 740.................................................................................... 79
Brisbane City Council v Group Projects (1979) 145 CLR 143.........................81
Limitations and Consequences..................................................................................... 84
I – LIMITATIONS............................................................................................................... 84
II – CONSEQUENCES...................................................................................................... 85
Termination.................................................................................................................................. 85
By Agreement......................................................................................................................... 85
I – ORIGINAL AGREEMENT........................................................................................ 85
II – SUBSEQUENT AGREEMENT.............................................................................. 86
By Failure of Contingent Condition........................................................................... 87
I – FOUR CATEGORIES OF CC................................................................................... 88
II – THE DUTY TO CO-OPERATE.............................................................................. 89
III – CONSEQUENCES OF NON-FULFILMENT.................................................91
IV – RESTICTIONS ON RIGHT TO TERMINATE FOR NON-
FULFILMENT OF CONDITION.................................................................................. 95
By Breach.................................................................................................................................. 96
I – WHAT CONSTITUTES BREACH OF CONTRACT?.....................................96
II – TERMINATION FOR BREACH OF A CONDITION...................................97
Tramways Advertising v Luna Park (1938) 61 CLR 286....................................98
Associated Newspapers v Bancks (1951) 83 CLR 322.....................................101
III – TERMINATION FOR BREACH OF AN INTERMEDIATE TERM. . .103
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, LAWS1075 – Contracts league Revision Notes
Hongkong Fir Shipping Co v Kawasaki Kisen Kaisha [1962] 2 QB 26.......103
Ankar v National Westminster Finance (Aust) (1987) 162 CLR 549...........105
Koompahtoo Local Aboriginal Land Council v Sanpine (2007) 233 CLR 115
............................................................................................................................................... 106
By Repudiation..................................................................................................................... 107
I – THE ABSENCE OF WILLINGNESS OR ABILITY......................................110
II – ILLUSTRATIVE CASES......................................................................................... 111
Carr v JA Berriman (1953) 89 CLR 327.................................................................111
Progressive Mailing House v Tabali (1985) 157 CLR 17.................................112
Maple Flock v Universal Furniture Products (Wembley) [1934] 1 KB 148
............................................................................................................................................... 114
DTR Nominees v Mona Homes (1978) 138 CLR 423........................................114
By Delay................................................................................................................................... 116
I – WHERE TIME IS OF THE ESSENCE..............................................................116
II – WHERE TIME IS NOT OF THE ESSENCE.................................................117
Louinder v Leis (1982) 149 CLR 509......................................................................119
Laurinda v Capalaba Park Shopping Centre (1989) 166 CLR 623..............120
Restrictions on Termination............................................................................................. 121
Ready and Willing.............................................................................................................. 121
Foran v Wight (1989) 168 CLR 385.........................................................................122
Election.................................................................................................................................... 124
I – GENERAL PRINCIPLES OF ELECTION........................................................124
Tropical Traders v Goonan (1964) 111 CLR 41..................................................126
Immer (No 145) v Uniting Church in Australia Property Trust (NSW)
(1993) 182 CLR 26......................................................................................................... 128
II – AFFIRMATION.......................................................................................................... 129
Consequences for Aggrieved Party...................................................................129
Consequences for Breaching Party...................................................................130
Bowes v Chaleyer (1923) 32 CLR 159....................................................................131
III – TERMINATION....................................................................................................... 132
Consequences for Aggrieved Party...................................................................132
Consequences for Breaching Party...................................................................133
IV – RIGHT TO CURE A BREACH........................................................................... 133
Estoppel................................................................................................................................... 133
Waiver........................................................................................................................................ 133
Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570. 134
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LAWS1075 Revision Notes
Contents
Logic.................................................................................................................................................. 8
Express Terms – Identification (1)....................................................................................8
By Signature.............................................................................................................................. 8
I – THE EFFECT OF SIGNATURE...............................................................................8
L’Estrange v F Graucob Ltd [1934] 2 KB 394..........................................................8
II – EXCEPTIONS TO THE SIGNATURE RULE....................................................9
Curtis v Chemical Cleaning & Dyeing [1951] 1 KB 805....................................10
Toll (FGCT) v Alphapharm (2004) 219 CLR 165...................................................11
III – CRITICISM OF THE RULE................................................................................. 13
By Notice................................................................................................................................... 13
I – TIMING............................................................................................................................ 14
Oceanic Sun Line Special Shipping Company v Fay (1988) 165 CLR 197. 14
II – KNOWLEDGE/NOTICE........................................................................................... 16
Thornton v Shoe Lane Parking [1971] 2 QB 163..................................................17
III – UNUSUAL TERMS.................................................................................................. 19
Baltic Shipping Co v Dillon (“The Mikhail Lermontov”) (1991) 22 NSWLR
1.............................................................................................................................................. 20
By Course of Dealing.......................................................................................................... 21
Rinaldi & Patroni v Precision Mouldings (1986) WAR 131...............................22
Balmain New Ferry v Robertson (1906) 4 CLR 379............................................23
Express Terms – Identification (2).................................................................................. 24
Parol Evidence Rule............................................................................................................ 24
I – DETERMINING WHETHER A CONTRACT IS WHOLLY WRITTEN. 24
State Rail Authority of NSW v Heath Outdoor (1986) 7 NSWLR 170..........25
II – EXCEPTIONS TO THE PAROL EVIDENCE RULE....................................27
Hoyt’s v Spencer (1919) 27 CLR 133........................................................................28
Saleh v Romanous [2010] NSWCA 274....................................................................29
III – PRE-CONTRACTUAL STATEMENTS.............................................................31
Equuscorp v Glengallan Investments (2004) 218 CLR 271..............................33
JJ Savage & Sons v Blakney (1970) 119 CLR 435................................................34
Oscar Chess v Williams [1957] 1 WLR 370............................................................35
Dick Bentley Productions v Harold Smith (Motors) [1965] 2 All ER 65......36
P a g e 1 | 264
,LAWS1075 – Contracts league Revision Notes
Express Terms – Construction........................................................................................... 37
Principles of Construction............................................................................................... 37
Parol Evidence Rule............................................................................................................ 38
I – SURROUNDING CIRCUMSTANCES.................................................................38
Western Export Services v Jireh International [2011] HCA 45.......................39
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251
CLR 640............................................................................................................................... 41
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37
................................................................................................................................................. 41
II – APPLICATION OF PRINCIPLES........................................................................44
Royal Botanic Gardens and Domain Trust v South Sydney City Council
(2002) 240 CLR 45........................................................................................................... 44
Pacific Carriers v BNP Paribas (2004) 218 CLR 451..........................................46
Exemption Clauses............................................................................................................... 48
III – CONTRA PREFERENTUM.................................................................................. 48
Darlington Futures v Delco Aust (1986) 161 CLR 500.......................................48
IV – NEGLIGENCE............................................................................................................ 50
Davis v Pearce Parking Station (1954) 91 CLR 642............................................50
V – FOUR CORNERS........................................................................................................ 52
Thomas National Transport (Melbourne) Pty Ltd v May & Baker
(Australia) Pty Ltd (1966) 115 CLR 353..................................................................52
Implied Terms............................................................................................................................. 53
Implied In Fact....................................................................................................................... 54
Byrne v Australian Airlines; Frew v Australian Airlines (1995) 185 CLR
410......................................................................................................................................... 56
Codelfa Construction v State Rail Authority of NSW (1982) 149 CLR 33759
Implied In Law........................................................................................................................ 61
University of Western Australia v Gray (2009) 179 FCR 346..........................61
Implied From Custom......................................................................................................... 63
Con-Stan Industries of Aust v Norwich Winterthur Ins (Aust) (1986) 160
CLR 226............................................................................................................................... 63
Australian Consumer Law (ACL)...................................................................................... 64
Overview of ACL Provisions............................................................................................. 64
INTRODUCTION TO ACL.............................................................................................. 64
CHAPTER 2 – GENERAL PROTECTIONS.............................................................65
Part 2 – 1: Misleading or Deceptive Conduct (ss 18-19)........................65
Part 2 – 2: Unconscionable Conduct (ss 20-22)...........................................65
P a g e 2 | 264
,LAWS1075 – Contracts league Revision Notes
Part 2 – 3: Unfair contract terms (ss 23-28)..................................................66
CHAPTER 3 – SPECIFIC PROTECTIONS..............................................................69
Part 3 – 1: Unfair practices (ss 29-38)..............................................................69
Part 3 – 2: Consumer Transactions (ss 51-68)..............................................69
CHAPTER 5 – ENFORCEMENT AND REMEDIES (ss 218-287)...............71
Standard Form Contracting............................................................................................ 73
I – INTRODUCTION......................................................................................................... 73
II – COSTS AND BENEFITS OF STANDARD FORM CONTRACTS..........73
III – THE ROLE OF COMPETITION.........................................................................74
IV – MARKET FAILURE AND SOCIAL FORCES................................................75
Frustration................................................................................................................................... 76
Introduction to Frustration............................................................................................ 76
I – THE TEST FOR FRUSTRATION.......................................................................... 76
II – OTHER TESTS PROVIDED IN EARLIER THEORIES.............................77
Taylor v Caldwell [1863] EWHC QB J1.....................................................................77
Krell v Henry [1903] 2 KB 740.................................................................................... 79
Brisbane City Council v Group Projects (1979) 145 CLR 143.........................81
Limitations and Consequences..................................................................................... 84
I – LIMITATIONS............................................................................................................... 84
II – CONSEQUENCES...................................................................................................... 85
Termination.................................................................................................................................. 85
By Agreement......................................................................................................................... 85
I – ORIGINAL AGREEMENT........................................................................................ 85
II – SUBSEQUENT AGREEMENT.............................................................................. 86
By Failure of Contingent Condition........................................................................... 87
I – FOUR CATEGORIES OF CC................................................................................... 88
II – THE DUTY TO CO-OPERATE.............................................................................. 89
III – CONSEQUENCES OF NON-FULFILMENT.................................................91
IV – RESTICTIONS ON RIGHT TO TERMINATE FOR NON-
FULFILMENT OF CONDITION.................................................................................. 95
By Breach.................................................................................................................................. 96
I – WHAT CONSTITUTES BREACH OF CONTRACT?.....................................96
II – TERMINATION FOR BREACH OF A CONDITION...................................97
Tramways Advertising v Luna Park (1938) 61 CLR 286....................................98
Associated Newspapers v Bancks (1951) 83 CLR 322.....................................101
III – TERMINATION FOR BREACH OF AN INTERMEDIATE TERM. . .103
P a g e 3 | 264
, LAWS1075 – Contracts league Revision Notes
Hongkong Fir Shipping Co v Kawasaki Kisen Kaisha [1962] 2 QB 26.......103
Ankar v National Westminster Finance (Aust) (1987) 162 CLR 549...........105
Koompahtoo Local Aboriginal Land Council v Sanpine (2007) 233 CLR 115
............................................................................................................................................... 106
By Repudiation..................................................................................................................... 107
I – THE ABSENCE OF WILLINGNESS OR ABILITY......................................110
II – ILLUSTRATIVE CASES......................................................................................... 111
Carr v JA Berriman (1953) 89 CLR 327.................................................................111
Progressive Mailing House v Tabali (1985) 157 CLR 17.................................112
Maple Flock v Universal Furniture Products (Wembley) [1934] 1 KB 148
............................................................................................................................................... 114
DTR Nominees v Mona Homes (1978) 138 CLR 423........................................114
By Delay................................................................................................................................... 116
I – WHERE TIME IS OF THE ESSENCE..............................................................116
II – WHERE TIME IS NOT OF THE ESSENCE.................................................117
Louinder v Leis (1982) 149 CLR 509......................................................................119
Laurinda v Capalaba Park Shopping Centre (1989) 166 CLR 623..............120
Restrictions on Termination............................................................................................. 121
Ready and Willing.............................................................................................................. 121
Foran v Wight (1989) 168 CLR 385.........................................................................122
Election.................................................................................................................................... 124
I – GENERAL PRINCIPLES OF ELECTION........................................................124
Tropical Traders v Goonan (1964) 111 CLR 41..................................................126
Immer (No 145) v Uniting Church in Australia Property Trust (NSW)
(1993) 182 CLR 26......................................................................................................... 128
II – AFFIRMATION.......................................................................................................... 129
Consequences for Aggrieved Party...................................................................129
Consequences for Breaching Party...................................................................130
Bowes v Chaleyer (1923) 32 CLR 159....................................................................131
III – TERMINATION....................................................................................................... 132
Consequences for Aggrieved Party...................................................................132
Consequences for Breaching Party...................................................................133
IV – RIGHT TO CURE A BREACH........................................................................... 133
Estoppel................................................................................................................................... 133
Waiver........................................................................................................................................ 133
Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570. 134
P a g e 4 | 264
