Contract Supervision 4: Terms
Contents
Cases ........................................................................................................................................................1
L’Estrange v Graucob Ltd [1934]..........................................................................................................1
Incorporation by Signature ...............................................................................................................1
Parker v SE Railway (1877)...................................................................................................................3
Interfoto v Stiletto [1989] ....................................................................................................................4
General Rule: More Unusual, More Onerous to Incorporate .........................................................4
Incorporation by Notice – Notice must be reasonable ...................................................................4
Attorney-General of Belize v Belize Telecom [2009] ...........................................................................4
Terms Implied by Law ......................................................................................................................5
George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd [1983] .....................................................7
Test of Reasonableness under UCTA ...............................................................................................7
D-G Fair Trading v First National Bank [2002] .....................................................................................8
When is a term unfair – ‘contrary to good faith’.............................................................................8
OFT v Abbey National PLC [2009] ........................................................................................................8
“Core terms” not covered (s6(2)) ....................................................................................................8
Requirement of clear language .......................................................................................................9
Enforcement ..................................................................................................................................10
Cases
L’Estrange v Graucob Ltd [1934]
Facts: Old Woman in Wales – automatic signature machine – machine not fit for purpose; exclusion
clause valid even though she could not see what was printed on the contract – brown paper, glasses.
Incorporation by Signature
(i) Rule
If one party has signed a contractual document, he is bound by the terms contained in that document
(L’Estrange v Graucob [1934]).
(ii) Exceptions
(1) Non est factum: a party may be able to deny that the document which he has signed is his deed if
he is unable, through no fault of his own, to understand the document without explanation
(2) Inducement to sign by fraud or misrepresentation
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Contents
Cases ........................................................................................................................................................1
L’Estrange v Graucob Ltd [1934]..........................................................................................................1
Incorporation by Signature ...............................................................................................................1
Parker v SE Railway (1877)...................................................................................................................3
Interfoto v Stiletto [1989] ....................................................................................................................4
General Rule: More Unusual, More Onerous to Incorporate .........................................................4
Incorporation by Notice – Notice must be reasonable ...................................................................4
Attorney-General of Belize v Belize Telecom [2009] ...........................................................................4
Terms Implied by Law ......................................................................................................................5
George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd [1983] .....................................................7
Test of Reasonableness under UCTA ...............................................................................................7
D-G Fair Trading v First National Bank [2002] .....................................................................................8
When is a term unfair – ‘contrary to good faith’.............................................................................8
OFT v Abbey National PLC [2009] ........................................................................................................8
“Core terms” not covered (s6(2)) ....................................................................................................8
Requirement of clear language .......................................................................................................9
Enforcement ..................................................................................................................................10
Cases
L’Estrange v Graucob Ltd [1934]
Facts: Old Woman in Wales – automatic signature machine – machine not fit for purpose; exclusion
clause valid even though she could not see what was printed on the contract – brown paper, glasses.
Incorporation by Signature
(i) Rule
If one party has signed a contractual document, he is bound by the terms contained in that document
(L’Estrange v Graucob [1934]).
(ii) Exceptions
(1) Non est factum: a party may be able to deny that the document which he has signed is his deed if
he is unable, through no fault of his own, to understand the document without explanation
(2) Inducement to sign by fraud or misrepresentation
1|Page
