Contract Law Casebook

760 Pages·2018·8.965 MB·English

by  Des Butler, Sharon Christensen, Bill Dixon, Lindy Willmott

title: BUT_CLC3E_04768_CVR format: 245mm x 170mm spine: 38.1mm CMYK
The Contract Law Case Book is a collection of extracts from the most CC
signifi cant cases in Australian contract law. This text has been updated
A
to include new case extracts, commentary, and excerpts from important
O
statutes, enabling you to experience the law through the judges’ own words S
CONTRACT
and to develop your ability to interpret and analyse cases.
E
N
New to this edition
B
■ New case extracts, including: T
● Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd O L AW
R
● Kakavas v Crown Melbourne Ltd O
● Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd
A
K
● Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd
● Paciocco v Australia and New Zealand Banking Group Ltd C CASE BOOK
● oOH! Media Roadside Pty Ltd v Diamond Wheels Pty Ltd
● Miller and Associates Insurance Broking Pty Ltd v BMW Australia T
Finance Ltd

● Equuscorp Pty Ltd v Haxton
L
■ Questions for refl ection updated, helping you get the most from the cases
A THIRD EDITION
DES BUTLER is a Professor in the Faculty of Law at W
the Queensland University of Technology.
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at the Queensland University of Technology. ISBN 978-0-19-030475-1
contact customevr9 issei7tr v8ui0sc e1a:t 9:c [email protected] mor W D C B Lindy Willmott
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and its principles.
ISBN 978-0-19-030476-8
9 780190 304768
visit us at: oup.com.au or
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CONTRACT LAW
CASE BOOK
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CONTRACT LAW
CASE BOOK
THIRD EDITION
Des Butler
Sharon Chirstensen
Bill Dixon
Lindy Willmott
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1
Oxford University Press is a department of the University of Oxford.
It furthers the University’s objective of excellence in research, scholarship, and education by
publishing worldwide. Oxford is a registered trademark of Oxford University Press in the UK and
in certain other countries.
Published in Australia by
Oxford University Press
253 Normanby Road, South Melbourne, Victoria 3205, Australia
© Des Butler, Sharon Christensen, Bill Dixon and Lindy Willmott 2018
The moral rights of the authors have been asserted.
First published 2009
Second edition 2013
Third edition 2018
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
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National Library of Australia Cataloguing-in-Publication entry
Creator: Butler, D. A. (Des A.), author.
Title: Contract law case book / Des Butler; Sharon Christensen; Bill Dixon; Lindy Willmott
Edition: Third Edition
ISBN: 9780190304768 (paperback)
Notes: Includes index.
Subjects: Contracts--Australia--Cases.
Other Creators/Contributors:
Christensen, Sharon, 1966- author.
Dixon, Bill, author.
Willmott, Lindy, author.
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TABLE OF CONTENTS
Table of Cases ............................................................................................................................................................xix
Table of Statutes .....................................................................................................................................................xxxii
Preface..................................................................................................................................................................xxxviii
Acknowledgments .................................................................................................................................................xxxix
PART 1: OVERVIEW ........................................................................1
CHAPTER 1: INTRODUCTION .......................................................................................................3
The development of Australian contract law ..........................................................................................................3
Recognition of the writ of assumpsit .................................................................................................................3
Slade’s Case ...................................................................................................................................................4
Requirement of consideration .............................................................................................................................5
Rann v Hughes ...............................................................................................................................................5
Eastwood v Kenyon .......................................................................................................................................7
Equitable estoppel ................................................................................................................................................7
Potential reform ....................................................................................................................................................8
Questions for reflection .............................................................................................................................................9
CHAPTER 2: NEGOTIATION ........................................................................................................10
Introduction ...............................................................................................................................................................10
Elements of negotiation ...........................................................................................................................................10
Bargaining strategies..................................................................................................................................................11
‘Don’t Bargain Over Positions’ .....................................................................................................................11
Phases of negotiation ...............................................................................................................................................13
‘The Transaction’..........................................................................................................................................13
Questions for reflection ...........................................................................................................................................14
PART 2: FORMATION ..................................................................15
CHAPTER 3: AGREEMENT .............................................................................................................17
Introduction ................................................................................................................................................................17
Offer .............................................................................................................................................................................17
Defining an offer ..................................................................................................................................................17
Carlill v Carbolic Smoke Ball Company .....................................................................................................18
Electronic Transactions (Victoria) Act 2000 (Vic), s 14B ........................................................................24
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VI TABLE OF CONTENTS
Categorising transactions ..................................................................................................................................25
Harvey v Facey .............................................................................................................................................25
Smythe v Thomas .........................................................................................................................................27
Communication of an offer ...............................................................................................................................29
Termination of an offer ......................................................................................................................................29
Dickinson v Dodds .......................................................................................................................................29
Acceptance .................................................................................................................................................................31
Offeree must accept terms of offer .................................................................................................................32
Crown v Clarke .............................................................................................................................................32
Hyde v Wrench .............................................................................................................................................34
Stephenson, Jaques, & Co v McLean .........................................................................................................35
Acceptance must be communicated to offeror..............................................................................................36
Carlill v Carbolic Smoke Ball Company .....................................................................................................36
Henthorn v Fraser ........................................................................................................................................38
Nunin Holdings Pty Ltd v Tullamarine Estates Pty Ltd .............................................................................40
Electronic Transactions (Victoria) Act 2000 (Vic), s 13A ........................................................................44
Electronic Transactions (Victoria) Act 2000 (Vic), s 14E ........................................................................46
Questions for reflection ...........................................................................................................................................46
CHAPTER 4: CERTAINTY AND COMPLETENESS ......................................................................47
Introduction ...............................................................................................................................................................47
Ambiguity and uncertainty ......................................................................................................................................47
Whitlock v Brew ...........................................................................................................................................47
Incomplete agreements ...........................................................................................................................................50
United Group Rail Services Ltd v Rail Corporation of New South Wales ................................................52
Godecke v Kirwan ........................................................................................................................................59
‘Subject to contract’ .................................................................................................................................................62
Masters v Cameron ......................................................................................................................................62
Questions for reflection ...........................................................................................................................................64
CHAPTER 5: INTENTION TO CREATE LEGAL RELATIONS ......................................................65
Introduction ...............................................................................................................................................................65
Modern approach ......................................................................................................................................................66
Ermogenous v Greek Orthodox Community of SA Inc .............................................................................66
Government activities ..............................................................................................................................................68
Circumstances indicating absence of intention ....................................................................................................68
Questions for reflection ...........................................................................................................................................69
CHAPTER 6: CONSIDERATION ...................................................................................................70
Introduction ...............................................................................................................................................................70
Rules governing consideration ................................................................................................................................70
Consideration must move from the promisee .......................................................................................................71
Coulls v Bagot’s Executor and Trustee Company Ltd ................................................................................71
Consideration: specific examples ............................................................................................................................72
Performance of an existing contractual duty ........................................................................................................74
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TABLE OF CONTENTS VII
Stilk v Myrick ................................................................................................................................................74
Williams v Roffey Bros & Nicholls (Contractors) Ltd ...............................................................................75
Musumeci v Winadell Pty Ltd .....................................................................................................................77
Bargained-for conduct already performed ............................................................................................................86
Pau On v Lau Yiu Long .................................................................................................................................86
Questions for reflection ...........................................................................................................................................88
CHAPTER 7: EQUITABLE ESTOPPEL ...........................................................................................89
Introduction ...............................................................................................................................................................89
Recognition of equitable estoppel ..........................................................................................................................89
Waltons Stores (Interstate) Ltd v Maher ...................................................................................................89
Relevant remedy ........................................................................................................................................................94
Commonwealth v Verwayen ......................................................................................................................94
Giumelli v Giumelli ......................................................................................................................................99
Questions for reflection .........................................................................................................................................102
PART 3: CONTENT ....................................................................103
CHAPTER 8: TERMS I: ESTABLISHING CONTRACTUAL TERMS ...........................................105
Introduction .............................................................................................................................................................105
Incorporating written terms ..................................................................................................................................105
Incorporation by signature .....................................................................................................................................105
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd ..............................................................................................106
Incorporation by notice—unsigned documents and signs ................................................................................109
Incorporation by notice—website .........................................................................................................................109
Incorporation by reference.....................................................................................................................................110
Incorporating oral terms ........................................................................................................................................110
Oscar Chess Ltd v Williams ........................................................................................................................111
JJ Savage & Sons Pty Ltd v Blakney ..........................................................................................................113
Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd ...................................................................114
Implied terms reflecting the intention of the parties ........................................................................................119
Term implied on the basis of business efficacy ...................................................................................................119
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales ...........................................120
Term implied from a previous consistent course of dealings
between the parties ...........................................................................................................................................121
Term implied from custom or usage ..............................................................................................................122
Term implied to complete agreement ...........................................................................................................122
Terms implied regardless of intention ..................................................................................................................122
Term implying duties of good faith, fair dealing and reasonableness .......................................................123
Renard Constructions (ME) Pty Ltd v Minister for Public Works ...........................................................123
Vodafone Pacific Ltd v Mobile Innovations Ltd ......................................................................................126
Esso Australia Resources Pty Ltd v Southern Pacific Petroleum NL ......................................................128
Questions for reflection .........................................................................................................................................129
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VIII TABLE OF CONTENTS
CHAPTER 9: TERMS II: CONSTRUCTION OF TERMS.............................................................130
Introduction .............................................................................................................................................................130
Interpreting the meaning of terms .......................................................................................................................130
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales ............................................131
Franklins Pty Ltd v Metcash Trading Pty Ltd ............................................................................................136
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd ....................................................................151
Legal effect of words: types of terms ...................................................................................................................154
Associated Newspapers Ltd v Bancks ......................................................................................................154
Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd ..................................................................156
Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd ............................................................160
Darlington Futures Ltd v Delco Australia Ltd ..........................................................................................167
Council of The City of Sydney v West .......................................................................................................169
Questions for reflection ..........................................................................................................................................171
PART 4: LIMITS ON ENFORCEMENT OF CONTRACTS .....173
CHAPTER 10: CAPACITY .............................................................................................................175
Introduction .............................................................................................................................................................175
Minors ........................................................................................................................................................................175
Common law .....................................................................................................................................................175
Nash v Inman .............................................................................................................................................176
Contracts of employment and apprenticeship .............................................................................................178
De Francesco v Barnum ............................................................................................................................178
Contracts that are binding unless repudiated ..............................................................................................181
Steinberg v Scala (Leeds) Ltd ...................................................................................................................182
Legislation ..........................................................................................................................................................183
Supreme Court Act 1986 (Vic), s 49 .......................................................................................................184
Supreme Court Act 1986 (Vic), s 50 .......................................................................................................184
Supreme Court Act 1986 (Vic), s 51........................................................................................................184
Minors Contracts (Miscellaneous Provisions) Act 1979 (SA), s 4 .........................................................185
Minors Contracts (Miscellaneous Provisions) Act 1979 (SA), s 5 .........................................................185
Minors Contracts (Miscellaneous Provisions) Act 1979 (SA), s 6 .........................................................185
Minors Contracts (Miscellaneous Provisions) Act 1979 (SA), s 7 .........................................................186
Minors Contracts (Miscellaneous Provisions) Act 1979 (SA), s 8 .........................................................186
Minors (Property and Contracts) Act 1970 (NSW), s 19 .......................................................................187
Minors (Property and Contracts) Act 1970 (NSW), s 20 ......................................................................187
Minors (Property and Contracts) Act 1970 (NSW), s 23 ......................................................................187
Minors (Property and Contracts) Act 1970 (NSW), s 24 ......................................................................187
Minors (Property and Contracts) Act 1970 (NSW), s 26 ......................................................................188
Minors (Property and Contracts) Act 1970 (NSW), s 27 .......................................................................188
Minors (Property and Contracts) Act 1970 (NSW), s 28 ......................................................................188
Minors (Property and Contracts) Act 1970 (NSW), s 29 ......................................................................189
Minors (Property and Contracts) Act 1970 (NSW), s 30 ......................................................................189
Minors (Property and Contracts) Act 1970 (NSW), s 31 .......................................................................190
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