Contract : cases and materials

1324 Pages·2016·6.046 MB·English

by  Andrew Robertson, Jeannie Marie Paterson, Arlen Duke

CONTRACT: CASES AND
MATERIALS
Cases and Materials
ThomsonReuters(Professional)AustraliaLimited
19HarrisStreetPyrmontNSW2009
Tel:[phone]Fax:[phone]
[email protected]
http://www.thomsonreuters.com.au
Forallcustomerinquiriespleasering1300304195
(forcallswithinAustraliaonly)
(forcallswithinAustraliaonly)
INTERNATIONALAGENTS&DISTRIBUTORS
NORTHAMERICA ASIAPACIFIC
ThomsonReuters ThomsonReuters
Eagan Sydney
UnitedStatesofAmerica Australia
LATINAMERICA EUROPE
ThomsonReuters ThomsonReuters
SãoPaulo London
Brazil UnitedKingdom
CONTRACT: CASES AND
MATERIALS
JEANNIE PATERSON
AssociateProfessor
MelbourneLawSchool,UniversityofMelbourne
ANDREW ROBERTSON
ProfessorofLaw
MelbourneLawSchool,UniversityofMelbourne
ARLEN DUKE
SeniorLecturer
MelbourneLawSchool,UniversityofMelbourne
THIRTEENTH EDITION
LAWBOOK CO. 2016
PublishedinSydneyby
ThomsonReuters(Professional)AustraliaLimitedABN64
058914668
19HarrisStreet,Pyrmont,NSW
1sted(McGarvie,Pannam,Hocker)1966 2nded(McGarvie,Pannam,Hocker)1971
Reprinted1973
3rded(McGarvie,Pannam,Hocker)1975 4thed(Pannam,Hocker)1979
Reprinted1976
5thed(Hocker,Dufty,Heffey)1985 6thed(Hocker,Dufty,Heffey)1990
Reprinted1986,2ndreprint1987 Reprinted1992,2ndreprint1993
7thed(Hocker,Heffey)1994 8thed(Heffey,Paterson,Hocker)1998
9thed(Heffey,Paterson,Robertson)2003 10thed(Paterson,Robertson)2005
11thed(Paterson,Robertson,Duke)2009 12thed(Paterson,Robertson,Duke)2012
13thed(Paterson,Robertson,Duke)2016
Creator:Paterson,JeannieMarie,author.
Title:Contract:casesandmaterials/JeanniePaterson,AndrewRobertson,ArlenDuke
Edition:13thedition
ISBN:9780455235981
Notes:Includesindex.
Subjects:Contracts—Australia—Cases
OtherCreators/Contributors:
Roberson,Andrew–author
Duke,Arlen–author
DeweyNumber:346.9402
©2016ThomsonReuters(Professional)AustraliaLimited
Thispublicationiscopyright.Otherthanforthepurposesofandsubjecttotheconditionsprescribedunderthe
Copyright Act, no part of it may in any form or by any means (electronic, mechanical, microcopying,
photocopying,recordingorotherwise)bereproduced,storedinaretrievalsystemortransmittedwithoutprior
writtenpermission.Inquiriesshouldbeaddressedtothepublishers.
Alllegislativematerialhereinisreproducedbypermissionbutdoesnotpurporttobetheofficialorauthorised
version. It is subject to Commonwealth of Australia copyright. The Copyright Act 1968 permits certain
reproductionandpublicationofCommonwealthlegislation.Inparticular,s182AoftheActenablesacomplete
copytobemadebyoronbehalfofaparticularperson.Forreproductionorpublicationbeyondthatpermitted
by the Act, permission should be sought in writing. Requests should be submitted online at http://
www.ag.gov.au/cca, faxed to [phone] or mailed to Commonwealth Copyright Administration,
Attorney-General’sDepartment,RobertGarranOffices,NationalCircuit,BartonACT2600.
Editor:LaraWeeks,NikkiSavvides
ProductDeveloper:NatashaNaude
Publisher:RobertWilson
PrintedbyLigarePtyLtd,Riverwood,NSW
ThisbookhasbeenprintedonpapercertifiedbytheProgrammefortheEndorsementofForestCertification
(PEFC). PEFC is committed to sustainable forest management through third party forest certification of
responsiblymanagedforests.Formoreinfo:http://www.pefc.org
TABLE OF CONTENTS
TableofCases..................................................................................................................................ix
TableofStatutes..........................................................................................................................xxvii
Part I: Introduction
Chapter 1:The nature of contract............................................................................3
Chapter 2:The place of contract within private law..........................................29
Part II: Formation
Chapter 3:Agreement..............................................................................................41
Chapter 4: Consideration.......................................................................................101
Chapter 5: Intention...............................................................................................137
Chapter 6: Certainty...............................................................................................161
Chapter 7: Formalities............................................................................................207
Chapter 8: Capacity.................................................................................................225
Part III: Detrimental reliance and unjust enrichment
Chapter 9: Estoppel.................................................................................................229
Chapter 10: Restitution..........................................................................................281
Part IV: Parties
Chapter 11: Privity..................................................................................................337
Part V: Express terms
Chapter 12: Identifying the express terms.........................................................383
Chapter 13: Construing the terms........................................................................435
Part VI: Gap filling
Chapter 14: Implied terms.....................................................................................459
Chapter 15: Frustration..........................................................................................511
v
Contract:CasesandMaterials
Part VII: Consumer contracts
Chapter 16: Unfair contract terms.......................................................................539
Chapter 17: Consumer guarantees.......................................................................547
Part VIII: Performance and breach
Chapter 18: Performance and breach..................................................................551
Part IX: Termination
Chapter 19:Termination by agreement..............................................................555
Chapter 20: Failure of a contingent condition...................................................573
Chapter 21:Termination for breach....................................................................587
Chapter 22:Termination for repudiation............................................................611
Chapter 23:Termination for delay.......................................................................629
Chapter 24: Consequences of affirmation or termination...............................647
Chapter 25: Restrictions.........................................................................................653
Part X: Remedies for breach
Chapter 26:The measure of damages.................................................................713
Chapter 27: Limitations on the award of damages...........................................763
Chapter 28: Liquidated damages and penalties.................................................817
Chapter 29:Actions for debt.................................................................................843
Chapter 30: Specific performance and injunctions...........................................867
Part XIA: Vitiating factors: Misinformation
Chapter 31: Mistake................................................................................................891
Chapter 32: Misrepresentation.............................................................................945
Chapter 33: Misleading or deceptive conduct....................................................961
Part XIB: Vitiating factors:Abuse of power
Chapter 34: Duress................................................................................................1075
vi
TableofContents
Chapter 35: Undue influence...............................................................................1089
Chapter 36: Unconscionable dealing..................................................................1099
Chapter 37: Impropriety by third parties..........................................................1141
Chapter 38: Unconscionable and unjust conduct under statute...................1155
Part XIC: Vitiating factors: Rescission
Chapter 39: Rescission..........................................................................................1179
Part XID: Vitiating factors: Illegality
Chapter 40: Contracts prohibited by statute...................................................1199
Chapter 41: Contracts prohibited at common law..........................................1215
Chapter 42:The consequences of illegality.......................................................1253
Index...................................................................... .................................................................1273
vii

TABLE OF CASES
A
AvHayden(1984)156CLR532.............................................................................................. 41.25
ASchroederMusicPublishingCoLtdvMacaulay[1974]1WLR1308;[1974]3AllER616...... 36.20
ABCvXIVthCommonwealthGamesLtd(1988)18NSWLR540.............................................. 13.35
AMEV-UDCFinanceLtdvAustin[1986]HCA63;(1986)162CLR170.............. 28.20,28.25,28.30,
28.40,28.50,28.55,28.60
AMEVFinanceLtdvArtesStudiosThoroughbredsPtyLtd(1989)15NSWLR564.....................28.25
AcademyofHealth&FitnessPtyLtdvPower[1973]VR254....................................................39.40
AccountingSystems2000(Developments)PtyLtdvCCHAustraliaLtd(1993)42FCR470..... 11.05,
33.145,33.150
AcronPacificLtdvOffshoreOilNL[1985]HCA63;(1985)157CLR514...................... 28.25,28.40
AdamsvLindsell(1818)1B&A681;106ER250.................................................................... 3.210
AdelaideCityCorporationvJenningsIndustriesLtd(1985)156CLR274................................. 14.25
AdministrationofPapuaandNewGuineavLeahy(1961)105CLR6......................................... 5.65
AdmiraltyCommissionersvSSChekiang[1926]AC637........................................................ 27.165
AdmiraltyCommissionersvSSSusquehanna[1926]AC655.................................................. 27.165
AgriculturalandRuralFinancePtyLtdvGardiner[2008]HCA57;(2008)238CLR570............ 25.75
AgripayPtyLimitedvByrne[2011]QCA85............................................................................. 37.30
AilsaCraigFishingCoLtdvMalvernFishingCoLtd[1983]1WLR964;[1983]1AllER101..... 13.60
AirGreatLakesPtyLtdvKSEaster(Holdings)PtyLtd(1985)2NSWLR309............................... 5.05
AlativKruger(1955)94CLR216.................................................................................. 39.10,39.15
AlcatelAustraliaLtdvScarcella[1998]44NSWLR349..................................14.170,14.175,14.195
AlexandervCambridgeCreditCorpLtd(1987)9NSWLR310................................................. 27.20
AllcardvSkinner(1887)36ChD145................................................................ 35.10,36.35,36.55
AllphonesRetailPtyLtdvHoyMobilePtyLtd[2009]FCAFC85............................................... 22.20
AmannAviationPtyLtdvCommonwealthofAustralia(1990)22FCR527;92ALR601.......... 14.100
AnacondaNickelLtdvTarmoolaAustraliaPtyLtd[2000]WASCA27;(2000)22WAR101........ 5.105
AndersonvMcPherson[No2][2012]WASC19....................................................................... 35.20
AndersonLtdvDaniel[1924]1KB138......................................................................... 40.25,41.63
AndrewsvAustraliaAndNewZealandBankingGroupLtd[2012]HCA30.................... 28.40,28.45
AngelvJay[1911]1KB666..................................................................................................... 39.60
AnkarPtyLtdvNationalWestminsterFinance(Aust)Ltd(1987)162CLR549.... 21.20,21.40,21.50
ApthorpvNeville&Co(1907)23TLR575.............................................................................. 42.75
Archbolds(Freightage)LtdvSSpanglettLtd[1961]1QB374........................... 41.60,41.62,41.67
ArnoldvBritton[2015]UKSC36................................................................................... 13.05,13.15
AshbyvTolhurst[1937]2KB242............................................................................................ 13.75
AshtonvPratt[2015]NSWCA12............................................................................................... 5.45
AsiaTelevisionLtdvYau’sEntertainmentPtyLtd(2000)48IPR283....................................... 14.175
AssociatedNewspapersLtdvBancks(1951)83CLR322...............................................21.20,21.35
AstleyvAustrust[1999]HCA6;(1999)197CLR1..................................................................27.220
AstleyvReynolds(1731)2Str915;93ER939......................................................................... 34.45
AstleyvWeldon(1801)2Bos&Pul346;126ER1318.................................................. 28.55,28.60
AtkinsonvDenby(1861)6H&N778;(1862)7H&N934................................................... 42.65
AtkynsvKinnier(1850)4Ex776..............................................................................................28.55
AtlanticCoastLineRailroadCovFlorida295US301(1935).................................................... 10.47
Attorney-GeneralvBlake[2001]1AC268.................................................................. 26.160,28.50
Attorney-General(NSW);ExrelFranklinsStoresPtyLtdvLizellePtyLtd[1977]2NSWLR
955......................................................................................................................................41.63
Attorney-GeneraloftheCommonwealthofAustraliavAdelaideSteamshipCoLtd[1913]
AC781................................................................................................................................ 41.75
AttorneyGeneralofBelizevBelizeTelecomLtd[2009]UKPC10;[2009]1WLR1988;
[2009]2AllER1127.................................................................................... 14.10,14.35,14.158
AttwoodvLamont[1920]3KB571......................................................................................... 41.80
AustinvManchester,Sheffield&LincolnshireRailwayCo(1850)10CB454............................ 13.75
AustinvUnitedDominionsCorporationLtd[1984]2NSWLR612.................................28.40,28.55
ix
Contract:CasesandMaterials
AustotelPtyLimitedvFranklinSelfservePtyLimited(1989)16NSWLR582............................... 9.70
AustraliaEstatesPtyLtdvCairnsCityCouncil[2005]QCA328................................................ 31.95
AustraliaandNewZealandBankingGroupLtdvWestpacBankingCorporation(1988)164
CLR662...............................................................................................................................42.60
AustralianBroadcastingCorporationvLenahGameMeatsPtyLtd[2001]HCA63;(2001)
208CLR199.............................................................................................................28.55,38.40
AustralianCo-operativeFoodsLtdvNorcoCo-operativeLtd[1999]NSWSC274;(1999)46
NSWLR267....................................................................................................................... 12.175
AustralianCompetitionandConsumerCommissionvBaxterHealthcarePtyLtd[2007]HCA
38;(2007)232CLR1.......................................................................................................... 42.10
AustralianCompetitionandConsumerCommissionvCGBerbatisHoldingsPtyLtd[2003]
HCA18;(2003)214CLR51..................................................................................... 36.60,38.35
AustralianCompetitionandConsumerCommissionvRadioRentalsLtd[2005]FCA1133;
(2005)146FCR292............................................................................................................ 36.60
AustralianCompetitionandConsumerCommissionvSamtonHoldingsPtyLtd(2002)117
FCR301...............................................................................................................................38.35
AustralianCompetitionandConsumerCommissionvTPGInternetPtyLtd[2013]HCA54;
(2013)250CLR640................................................................................................. 33.40,33.45
AustralianCrimeCommissionvGray[2003]NSWCA318........................................................ 9.215
AustralianFinancialServicesandLeasingvHillsIndustries[2014]HCA14;(2014)253CLR
560...........................................................................................................................10.15,10.47
AustralianWoollenMillsPtyLtdvCommonwealth(1954)92CLR424;PrivyCouncil(1955)
93CLR546............................................................................................................................4.20
AyerstvJenkins(1873)LR16Eq275........................................................................................ 42.75
B
BICCPlcvBurndyCorp[1985]Ch232.................................................................................... 28.20
BPRefinery(Westernport)PtyLtdvShireofHastings(1977)180CLR266....... 14.15,14.25,14.158
BadmanvDrake[2008]NSWSC1366......................................................................................35.35
BakervCampbell(1983)57ALJR749...................................................................................... 41.25
BalfourvBalfour[1919]2KB571.............................................................................................. 5.45
BalmainNewFerryCoLtdvRobertson(1906)4CLR379............................................. 12.85,12.90
BalticShippingCovDillon(“TheMikhailLermontov”)(1993)176CLR344..... 10.05,10.10,10.53,
12.75,15.65,27.175,27.180
BankLineLtdvArthurCapel&Co[1919]AC435................................................................... 15.55
BankofCreditandCommerceInternationalSAvAli[2001]UKHL8;[2002]1AC251............. 13.15
BankofVictoriaLtdvMueller[1925]VLR642............................................................... 36.20,36.25
BanqueBrusselsLambertSAvAustralianNationalIndustriesLtd(1989)21NSWLR502............. 5.30
BanqueWormsvBankAmericaInternational570NE(2d)189(1990)...................................... 10.47
BarclaysBankplcvO’Brien[1994]1AC80.............................................................................. 37.30
BarnesvAddy(1874)LR9ChApp244.................................................................................... 36.60
BarrowvIsaacs&Son[1891]1QB417................................................................................. 14.155
BartonvArmstrong[1976]AC104............................................................................... 34.25,34.30
BaulkhamHillsPrivateHospitalPtyLtdvGRSecuritiesPtyLtd(1986)40NSWLR622.............. 5.105
BeachPetroleumNLvJohnson(1993)43FCR1...................................................................... 32.25
BeatonvMcDivitt(1987)13NSWLR162...................................................................................4.30
BeerensvBluescopeDistributionPtyLtd[2012]VSCA209;(2012)39VR1............................. 34.65
BelgrovevEldridge(1954)90CLR613.................................................................................. 26.122
BellvLeverBrothersLtd[1932]AC161...................................................19.65,31.10,31.45,31.50
BellgrovevEldridge(1954)90CLR613................................................................................. 26.125
BenceGraphicsInternationalLtdvFassonUKLtd[1998]QB87.............................................27.160
BeresfordvRoyalInsuranceCo[1938]AC586......................................................................... 41.67
Bergl(Australia)LtdvMoxonLighterageCoLtd(1920)28CLR194........................................ 13.20
BiotechnologyAustraliaPtyLtdvPace(1988)15NSWLR130........................................... 6.05,6.25
BirminghamandDistrictLandCompanyvLondonandNorthWesternRailwayCo(1889)
40ChD268..........................................................................................................................9.05
BlomleyvRyan(1956)99CLR362............ 35.20,36.05,36.10,36.20,36.25,36.50,36.55,36.60,
38.35,38.40
BlythChemicalsLtdvBushnell(1933)49CLR66................................................................... 14.158
x