These lecture notes include a detailed outline of all the relevant topics for each module, as well as detailed notes, analysis, cases and explaination of the topics. They are taken directly from professors lecturing at the City Law School, for first and second year Law.
All the cases have a short ...
Review: 4 principles- whether it is a term in a contract:
a) Special Knowledge- if unequal knowledge= no term (Oscar Chess v Williams)
b) Incorporation of a term (signature, reasonable notice, course of dealing)
c) Importance of term (Bannerman v White)
d) Whether party told to verify
Used to determine if terms in contract are breached; remedies
a) Special Knowledge Test
Oscar Chess v Williams, 1957
o Legal authority- special knowledge test replacing importance of a term test (if there
is special knowledge, it is not a term)
o (Contrast this with Dick v Bentley)
o Plaintiff was a car dealer, who bought a Morris car from def. Seller
o Pl discovered after purchase that log book was wrong and car was a 1939 and not
1948 model
o Def. had special knowledge and pl. did not hence court (denning) determined is was
not a term of contract
o It was an innocent misrepresentation (not intended)
o Remedy sought by plaintiff: recission
o Morris dissented Denning’s approach of special knowledge
Dick Bentley Productions v Harold Smith, 1965
o Plaintiff buyer sued for damages of breach as to a term of mileage
o Since car dealer claimed car had less miles, but in fact it had more
o Denning: seller should have known, clear misrepresentations from def. side since he
should have known that miles were important as a term to the plaintiff
Implied Terms (ch. 13)
Not all terms are expressly mentioned by the parties since they are so obvious
Test of necessity- court gives effect to what is needed to make contract work
Under Sale of Goods Act
3 types of implied terms:
1) Terms implied by courts (fact and law)
two issues-
why can court imply a term?
What terms can be implied?
Test of necessity applied (objective test): expressed that an officious bystander would
have either known/replied ‘of course’ to the term or not (if yes, then it’s a necessary
term)
reasonableness is not a test!
Terms implied in fact:
relevant, since it’s a commercial relationship that has been negotiated by the parties
judge then looks at facts of those negotiations
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