LAWS1075 – Contracts Samuel Lee Revision Notes
Contents
LAWS1075
Revision Notes
Logic ....................................................................................................................................................... 9
Express Terms – Identification (1) ...................................................................................................... 9
By Signature ...................................................................................................................................... 9
I – THE EFFECT OF SIGNATURE .......................................................................................... 9
L’Estrange v F Graucob Ltd [1934] 2 KB 394............................................................................ 9
II – EXCEPTIONS TO THE SIGNATURE RULE ................................................................ 10
Curtis v Chemical Cleaning & Dyeing [1951] 1 KB 805 .......................................................... 10
Toll (FGCT) v Alphapharm (2004) 219 CLR 165 .................................................................... 12
III – CRITICISM OF THE RULE ............................................................................................ 14
By Notice .......................................................................................................................................... 14
I – TIMING ................................................................................................................................. 14
Oceanic Sun Line Special Shipping Company v Fay (1988) 165 CLR 197............................... 14
II – KNOWLEDGE/NOTICE ................................................................................................... 17
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 ...................................................................................................................... 22
Rinaldi & Patroni v Precision Mouldings (1986) WAR 131 ..................................................... 23
Balmain New Ferry v Robertson (1906) 4 CLR 379................................................................. 24
Express Terms – Identification (2) .................................................................................................... 25
Parol Evidence Rule ........................................................................................................................ 25
I – DETERMINING WHETHER A CONTRACT IS WHOLLY WRITTEN ..................... 25
State Rail Authority of NSW v Heath Outdoor (1986) 7 NSWLR 170 ..................................... 26
II – EXCEPTIONS TO THE PAROL EVIDENCE RULE .................................................... 28
Hoyt’s v Spencer (1919) 27 CLR 133 ....................................................................................... 29
Saleh v Romanous [2010] NSWCA 274 ................................................................................... 30
III – PRE-CONTRACTUAL STATEMENTS ......................................................................... 33
Equuscorp v Glengallan Investments (2004) 218 CLR 271 ...................................................... 34
JJ Savage & Sons v Blakney (1970) 119 CLR 435 ................................................................... 35
Oscar Chess v Williams [1957] 1 WLR 370 ............................................................................. 36
P a g e 1 | 221
,LAWS1075 – Contracts Samuel Lee Revision Notes
Dick Bentley Productions v Harold Smith (Motors) [1965] 2 All ER 65 .................................. 37
P a g e 2 | 221
,LAWS1075 – Contracts Samuel Lee Revision Notes
Express Terms – Construction ........................................................................................................... 38
Principles of Construction .............................................................................................................. 38
Parol Evidence Rule ........................................................................................................................ 39
I – SURROUNDING CIRCUMSTANCES .............................................................................. 39
Western Export Services v Jireh International [2011] HCA 45 ...................................................... 40
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640........................ 42
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37 ................................ 43
II – APPLICATION OF PRINCIPLES .................................................................................... 45
Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 240 CLR 45 ...... 45
Pacific Carriers v BNP Paribas (2004) 218 CLR 451 ...................................................................... 47
Exemption Clauses .......................................................................................................................... 49
III – CONTRA PREFERENTUM ............................................................................................ 50
Darlington Futures v Delco Aust (1986) 161 CLR 500 .................................................................. 50
IV – NEGLIGENCE................................................................................................................... 51
Davis v Pearce Parking Station (1954) 91 CLR 642........................................................................ 51
V – FOUR CORNERS ................................................................................................................ 53
Thomas National Transport (Melbourne) Pty Ltd v May & Baker (Australia) Pty Ltd (1966) 115
CLR 353 .......................................................................................................................................... 54
Implied Terms ..................................................................................................................................... 55
Implied In Fact ................................................................................................................................ 55
Byrne v Australian Airlines; Frew v Australian Airlines (1995) 185 CLR 410 ................................ 57
Codelfa Construction v State Rail Authority of NSW (1982) 149 CLR 337................................... 60
Implied In Law ................................................................................................................................ 62
University of Western Australia v Gray (2009) 179 FCR 346 ........................................................ 63
Implied From Custom..................................................................................................................... 64
Con-Stan Industries of Aust v Norwich Winterthur Ins (Aust) (1986) 160 CLR 226 .................... 65
Australian Consumer Law (ACL) ............................................................................................................ 66
Overview of ACL Provisions ................................................................................................................ 66
INTRODUCTION TO ACL ...................................................................................................... 66
CHAPTER 2 – GENERAL PROTECTIONS .......................................................................... 67
Part 2 – 1: Misleading or Deceptive Conduct (ss 18-19)........................................................ 67
Part 2 – 2: Unconscionable Conduct (ss 20-22) ..................................................................... 67
Part 2 – 3: Unfair contract terms (ss 23-28) ............................................................................... 68
CHAPTER 3 – SPECIFIC PROTECTIONS ........................................................................... 70
Part 3 – 1: Unfair practices (ss 29-38) ......................................................................................... 70
Part 3 – 2: Consumer Transactions (ss 51-68) ....................................................................... 70
P a g e 3 | 221
, LAWS1075 – Contracts Samuel Lee Revision Notes
CHAPTER 5 – ENFORCEMENT AND REMEDIES (ss 218-287) ....................................... 73
Standard Form Contracting ................................................................................................................. 74
I – INTRODUCTION ................................................................................................................ 74
II – COSTS AND BENEFITS OF STANDARD FORM CONTRACTS ............................... 75
III – THE ROLE OF COMPETITION ................................................................................... 76
IV – MARKET FAILURE AND SOCIAL FORCES ............................................................... 77
Frustration ........................................................................................................................................... 78
Introduction to Frustration............................................................................................................. 78
I – THE TEST FOR FRUSTRATION ..................................................................................... 78
II – OTHER TESTS PROVIDED IN EARLIER THEORIES .............................................. 79
Taylor v Caldwell [1863] EWHC QB J1 ......................................................................................... 79
Krell v Henry [1903] 2 KB 740 ....................................................................................................... 81
Brisbane City Council v Group Projects (1979) 145 CLR 143 ....................................................... 82
Limitations and Consequences ...................................................................................................... 86
I – LIMITATIONS ..................................................................................................................... 86
II – CONSEQUENCES.............................................................................................................. 87
Termination ......................................................................................................................................... 87
By Agreement .................................................................................................................................. 87
I – ORIGINAL AGREEMENT ................................................................................................. 87
II – SUBSEQUENT AGREEMENT ........................................................................................ 88
By Failure of Contingent Condition............................................................................................... 89
I – FOUR CATEGORIES OF CC ............................................................................................. 90
II – THE DUTY TO CO-OPERATE........................................................................................ 91
III – CONSEQUENCES OF NON-FULFILMENT .............................................................. 93
IV – RESTICTIONS ON RIGHT TO TERMINATE FOR NON-FULFILMENT OF
CONDITION ........................................................................................................................ 97
By Breach ......................................................................................................................................... 98
I – WHAT CONSTITUTES BREACH OF CONTRACT? ..................................................... 98
II – TERMINATION FOR BREACH OF A CONDITION .................................................. 98
Tramways Advertising v Luna Park (1938) 61 CLR 286 .............................................................. 100
Associated Newspapers v Bancks (1951) 83 CLR 322 ................................................................. 103
III – TERMINATION FOR BREACH OF AN INTERMEDIATE TERM ...................... 105
Hongkong Fir Shipping Co v Kawasaki Kisen Kaisha [1962] 2 QB 26 ....................................... 105
Ankar v National Westminster Finance (Aust) (1987) 162 CLR 549 ........................................... 107
Koompahtoo Local Aboriginal Land Council v Sanpine (2007) 233 CLR 115 ............................ 108
By Repudiation .............................................................................................................................. 110
P a g e 4 | 221
Contents
LAWS1075
Revision Notes
Logic ....................................................................................................................................................... 9
Express Terms – Identification (1) ...................................................................................................... 9
By Signature ...................................................................................................................................... 9
I – THE EFFECT OF SIGNATURE .......................................................................................... 9
L’Estrange v F Graucob Ltd [1934] 2 KB 394............................................................................ 9
II – EXCEPTIONS TO THE SIGNATURE RULE ................................................................ 10
Curtis v Chemical Cleaning & Dyeing [1951] 1 KB 805 .......................................................... 10
Toll (FGCT) v Alphapharm (2004) 219 CLR 165 .................................................................... 12
III – CRITICISM OF THE RULE ............................................................................................ 14
By Notice .......................................................................................................................................... 14
I – TIMING ................................................................................................................................. 14
Oceanic Sun Line Special Shipping Company v Fay (1988) 165 CLR 197............................... 14
II – KNOWLEDGE/NOTICE ................................................................................................... 17
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 ...................................................................................................................... 22
Rinaldi & Patroni v Precision Mouldings (1986) WAR 131 ..................................................... 23
Balmain New Ferry v Robertson (1906) 4 CLR 379................................................................. 24
Express Terms – Identification (2) .................................................................................................... 25
Parol Evidence Rule ........................................................................................................................ 25
I – DETERMINING WHETHER A CONTRACT IS WHOLLY WRITTEN ..................... 25
State Rail Authority of NSW v Heath Outdoor (1986) 7 NSWLR 170 ..................................... 26
II – EXCEPTIONS TO THE PAROL EVIDENCE RULE .................................................... 28
Hoyt’s v Spencer (1919) 27 CLR 133 ....................................................................................... 29
Saleh v Romanous [2010] NSWCA 274 ................................................................................... 30
III – PRE-CONTRACTUAL STATEMENTS ......................................................................... 33
Equuscorp v Glengallan Investments (2004) 218 CLR 271 ...................................................... 34
JJ Savage & Sons v Blakney (1970) 119 CLR 435 ................................................................... 35
Oscar Chess v Williams [1957] 1 WLR 370 ............................................................................. 36
P a g e 1 | 221
,LAWS1075 – Contracts Samuel Lee Revision Notes
Dick Bentley Productions v Harold Smith (Motors) [1965] 2 All ER 65 .................................. 37
P a g e 2 | 221
,LAWS1075 – Contracts Samuel Lee Revision Notes
Express Terms – Construction ........................................................................................................... 38
Principles of Construction .............................................................................................................. 38
Parol Evidence Rule ........................................................................................................................ 39
I – SURROUNDING CIRCUMSTANCES .............................................................................. 39
Western Export Services v Jireh International [2011] HCA 45 ...................................................... 40
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640........................ 42
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37 ................................ 43
II – APPLICATION OF PRINCIPLES .................................................................................... 45
Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 240 CLR 45 ...... 45
Pacific Carriers v BNP Paribas (2004) 218 CLR 451 ...................................................................... 47
Exemption Clauses .......................................................................................................................... 49
III – CONTRA PREFERENTUM ............................................................................................ 50
Darlington Futures v Delco Aust (1986) 161 CLR 500 .................................................................. 50
IV – NEGLIGENCE................................................................................................................... 51
Davis v Pearce Parking Station (1954) 91 CLR 642........................................................................ 51
V – FOUR CORNERS ................................................................................................................ 53
Thomas National Transport (Melbourne) Pty Ltd v May & Baker (Australia) Pty Ltd (1966) 115
CLR 353 .......................................................................................................................................... 54
Implied Terms ..................................................................................................................................... 55
Implied In Fact ................................................................................................................................ 55
Byrne v Australian Airlines; Frew v Australian Airlines (1995) 185 CLR 410 ................................ 57
Codelfa Construction v State Rail Authority of NSW (1982) 149 CLR 337................................... 60
Implied In Law ................................................................................................................................ 62
University of Western Australia v Gray (2009) 179 FCR 346 ........................................................ 63
Implied From Custom..................................................................................................................... 64
Con-Stan Industries of Aust v Norwich Winterthur Ins (Aust) (1986) 160 CLR 226 .................... 65
Australian Consumer Law (ACL) ............................................................................................................ 66
Overview of ACL Provisions ................................................................................................................ 66
INTRODUCTION TO ACL ...................................................................................................... 66
CHAPTER 2 – GENERAL PROTECTIONS .......................................................................... 67
Part 2 – 1: Misleading or Deceptive Conduct (ss 18-19)........................................................ 67
Part 2 – 2: Unconscionable Conduct (ss 20-22) ..................................................................... 67
Part 2 – 3: Unfair contract terms (ss 23-28) ............................................................................... 68
CHAPTER 3 – SPECIFIC PROTECTIONS ........................................................................... 70
Part 3 – 1: Unfair practices (ss 29-38) ......................................................................................... 70
Part 3 – 2: Consumer Transactions (ss 51-68) ....................................................................... 70
P a g e 3 | 221
, LAWS1075 – Contracts Samuel Lee Revision Notes
CHAPTER 5 – ENFORCEMENT AND REMEDIES (ss 218-287) ....................................... 73
Standard Form Contracting ................................................................................................................. 74
I – INTRODUCTION ................................................................................................................ 74
II – COSTS AND BENEFITS OF STANDARD FORM CONTRACTS ............................... 75
III – THE ROLE OF COMPETITION ................................................................................... 76
IV – MARKET FAILURE AND SOCIAL FORCES ............................................................... 77
Frustration ........................................................................................................................................... 78
Introduction to Frustration............................................................................................................. 78
I – THE TEST FOR FRUSTRATION ..................................................................................... 78
II – OTHER TESTS PROVIDED IN EARLIER THEORIES .............................................. 79
Taylor v Caldwell [1863] EWHC QB J1 ......................................................................................... 79
Krell v Henry [1903] 2 KB 740 ....................................................................................................... 81
Brisbane City Council v Group Projects (1979) 145 CLR 143 ....................................................... 82
Limitations and Consequences ...................................................................................................... 86
I – LIMITATIONS ..................................................................................................................... 86
II – CONSEQUENCES.............................................................................................................. 87
Termination ......................................................................................................................................... 87
By Agreement .................................................................................................................................. 87
I – ORIGINAL AGREEMENT ................................................................................................. 87
II – SUBSEQUENT AGREEMENT ........................................................................................ 88
By Failure of Contingent Condition............................................................................................... 89
I – FOUR CATEGORIES OF CC ............................................................................................. 90
II – THE DUTY TO CO-OPERATE........................................................................................ 91
III – CONSEQUENCES OF NON-FULFILMENT .............................................................. 93
IV – RESTICTIONS ON RIGHT TO TERMINATE FOR NON-FULFILMENT OF
CONDITION ........................................................................................................................ 97
By Breach ......................................................................................................................................... 98
I – WHAT CONSTITUTES BREACH OF CONTRACT? ..................................................... 98
II – TERMINATION FOR BREACH OF A CONDITION .................................................. 98
Tramways Advertising v Luna Park (1938) 61 CLR 286 .............................................................. 100
Associated Newspapers v Bancks (1951) 83 CLR 322 ................................................................. 103
III – TERMINATION FOR BREACH OF AN INTERMEDIATE TERM ...................... 105
Hongkong Fir Shipping Co v Kawasaki Kisen Kaisha [1962] 2 QB 26 ....................................... 105
Ankar v National Westminster Finance (Aust) (1987) 162 CLR 549 ........................................... 107
Koompahtoo Local Aboriginal Land Council v Sanpine (2007) 233 CLR 115 ............................ 108
By Repudiation .............................................................................................................................. 110
P a g e 4 | 221
