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CASES ratio LEGISLATION TOPIC CONTRACTS SEM 1 2018 Table of Contents OFFER..................................................................................................................................... Electronic Transactions Act (NSW)..............................................................

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CASES – ratio

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CONTRACTS NOTES- SEM 1 2018

Table of Contents OFFER......................................................................................................................................4 Electronic Transactions Act 2000 (NSW)......................................................................................4 Gibson v Manchester City Council [1979] 1 WLR 294 [2.15]......................................................4 Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 [2.25]............................................................4 MacRobertson Miller Airline Services v Commissioner of State Taxation (WA) (1975) 133 CLR 125 [2.35].................................................................................................................................5 Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401 [2.60]..........................................................................................................................................5 Goldsborough Mort & Co Ltd v Quinn (1910) 10 CLR 674 [2.110]............................................5 Mobil Oil Australia Ltd v Welcome International (1998) 81 FCR 475) [2.145]..........................6

ACCEPTANCE........................................................................................................................8 R v Clarke (1927) 40 CLR 227.......................................................................................................8 Felthouse v Bindley (1862) 142 ER 1037........................................................................................8 Empirnall Holdings v Machon Paull (1988) 14 NSWLR 523.......................................................8 Brambles Holdings v Bathurst City Council (2001) 53 NSWLR.................................................9 Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft [1983] 2 AC 34.................10 Butler Machine Tool Co Ltd v Ex-Cell-O Corp [1979] 1 All ER 965.........................................10

CONSIDERATION................................................................................................................12 Australian Woollen Mills Pty Ltd v Commonwealth (1954) 92 CLR 424.................................12 Beaton v McDivitt (1987) 13 NSWLR 162...................................................................................12 Roscorla v Thomas (1842) 3 QB 234............................................................................................13 Foakes v Beer (1884) 9 App Cas 605............................................................................................13 Williams v Roffey Bros & Nicholls (Contractors) Ltd [1991] 1 QB 1........................................13 Musumeci v Winadell Pty Ltd (1994) 34 NSWLR 723...............................................................14 Re Selectmove [1995] 1 WLR 474................................................................................................15 Pao On v Lau Yiu Long [1980] AC 614........................................................................................16 Wigan v Edwards (1973) 47 ALJR 586........................................................................................16

INTENTION...........................................................................................................................18 Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95.............................18 Banque Brussels Lambert SA v Australian National Industries Ltd (1989) 21 NSWLR 502. .18 Todd v Nicol [1957] SASR 72........................................................................................................19 Administration of Papua and New Guinea v Leahy (1961) 105 CLR 6.....................................20 Masters v Cameron (1954) 91 CLR 353.......................................................................................20

CERTAINTY..........................................................................................................................22 Council of the Upper Hunter County District v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429.......................................................................................................................22 Biotechnology Australia P/L v Pace (1988) 15 NSWLR 130.......................................................22 Whitlock v Brew (1968) 118 CLR 445..........................................................................................23 Hall v Busst (1960) 104 CLR 206.................................................................................................24 United Group Rail Services Ltd v Rail Corporation NSW (2009) 74 NSWLR 618..................24 Meehan v Jones (1982) 149 CLR 571...........................................................................................25 Godecke v Kirwan (1973) 129 CLR 629......................................................................................26 Placer Development Ltd v The Commonwealth (1969) 121 CLR 353.......................................27

FORMALITIES.....................................................................................................................29 Conveyancing Act 1919 (NSW) s54A...........................................................................................29 Electronic Transactions Act 2000 (NSW).....................................................................................29

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Textbook page 273.........................................................................................................................29

PRIVITY.................................................................................................................................30 Coulls v Bagot’s Executor & Trustee Co Ltd (1967) 119 CLR 460............................................30 Port Jackson Stevedoring v Salmond & Spraggon (Aust) (The ‘New York Star’) (1978) 139 CLR 231.........................................................................................................................................30 Trident General Insurance Co Ltd v McNiece Bros P/L (1988) 165 CLR 107..........................31

EXPRESS TERMS.................................................................................................................32 L’Estrange v F Graucob Ltd [1934] 2 KB 394.............................................................................32 Curtis v Chemical Cleaning & Dyeing Co [1951] 1 KB 805.......................................................32 Thornton v Shoe Lane Parking Ltd [1971] 2 QB 163.................................................................34 Baltic Shipping Co v Dillon (‘The Mikhail Lermontov’) (1991) 22 NSWLR 1.........................35 Rinaldi & Patroni Pty Ltd v Precision Mouldings Pty Ltd (1986) WAR 131............................36 Petelin v Cullen (1975) 132 CLR 355 [16.170].............................................................................36 State Rail Authority of New South Wales v Heath Outdoor Pty Ltd (1986) 7 NSWLR 170....37 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR 271............................38 JJ Savage & Sons Pty Ltd v Blakney (1970) 119 CLR 435.........................................................39 Oscar Chess Ltd v Williams [1957] 1 WLR 370..........................................................................40 Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd [1965] 1 WLR 623.....................40 Hoyt’s Pty Ltd v Spencer (1919) 27 CLR 133..............................................................................41 Western Export Services Inc v Jireh International Pty Ltd (2011) [2011] HCA 45..................41 Electricity Generation Corporation v Woodside Energy Ptd (2014) 251 CLR 640..................41 Royal Botanic Gardens and Domain Trust v South Sydney Council (2002) 240 CLR 45........41 Pacific Carriers v BNP Paribas (2004) 218 CLR 451..................................................................42 Darlington Futures Ltd v Delco Aust Pty Ltd (1986) 161 CLR 500...........................................43 Thomas National Transport (Melbourne) Pty Ltd v May & Baker (Australia) Pty Ltd (1966) 115 CLR 353..................................................................................................................................44 Davis v Pearce Parking Station (1954) 91 CLR 642 [9.345].......................................................45

IMPLIED TERMS.................................................................................................................47 Past Dealings Between Parties......................................................................................................47 Byrne v Australian Airlines Ltd (1995) 185 CLR 411.................................................................48 University of Western Australia v Gray (2009) 179 FCR 346....................................................49 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance Ltd (1986) 160 CLR 226.........................................................................................................................................49 There must be evidence that the custom relied on is so well known and acquiesced in that everyone making a contract in that situation can reasonably be presumed to have imported that term into the contract............................................................................................................50 The Moorcock (1889) 14 PD 64 [10.30] • Re Ronim Pty Ltd [1989] 2 Qd R 172......................50 BP Refinery (Westernport) Pty Ltd v President, Councillors and Ratepayers of the Shire of Hastings (1977) 180 CLR 266.......................................................................................................51 Informal Contracts......................................................................................................................51

PERFORMANCE AND BREACH.......................................................................................52 Tramways Advertising Pty Ltd v Luna Park Ltd (1938) 38 SR (NSW) 632.............................52 Luna Park Ltd v Tramways Advertising Pty Ltd (1938) 61 CLR 286.......................................52 Associated Newspapers v Bancks (1951) 83 CLR 322................................................................53 Hongkong Fir Shipping Co v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26..............................53 Ankar Pty Ltd v National Westminster Finance Ltd (1987) 162 CLR 549...............................54 Koompahtoo Local Aboriginal Land Council v Sanpine (2007) 233 CLR 115.........................55 McDermott v Black (1940) 63 CLR 161 [13.160]........................................................................56

TERMINATION OF CONTRACT: REPUDIATION........................................................57 Carr v J A Berriman (1953) 89 CLR 327.....................................................................................57 Progressive Mailing House v Tabali (1985) 157 CLR 17............................................................57 Maple Flock v Universal Furniture Products (Wembley) [1934] 1 KB 148..............................59

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DTR Nominees v Mona Homes P/L (1978) 138 CLR 423...........................................................60 Conveyancing Act 1919 (NSW) s13..............................................................................................62 Louinder v Leis (1982) 149 CLR 509...........................................................................................62 Laurinda P/L v Capalaba Park Shopping Centre P/L (1989) 166 CLR 623.............................63

CONSEQUENCES AND RESTRICTIONS........................................................................65 Bowes v Chaleyer (1923) 32 CLR 159..........................................................................................65

ESTOPPEL.............................................................................................................................67 Walton’s Stores (Interstate) v Maher (1988) 164 CLR 387........................................................67 Commonwealth v Verwayen (1990) 170 CLR 394.......................................................................67 Sidhu v Van Dyke (2014) 251 CLR 505........................................................................................68 W v G (1996) 10 Fam LR 49.........................................................................................................69 Legione v Hateley (1983) 152 CLR 406........................................................................................69 Je Maintiendrai P/L v Quaglia (1980) 26 SASR 101...................................................................70

VITIATING FACTORS: MISREPRESENTATION; MISLEADING AND DECEPTIVE CONDUCT.............................................................................................................................71 Smith v Land & House Property Corp (1884) 28 Ch D 7...........................................................71 Fitzpatrick v Michel (1928) 28 SR (NSW) 285............................................................................72 Public Trustee v Taylor [1978] VR 289........................................................................................73 Redgrave v Hurd (1881) 20 Ch D 1..............................................................................................73 Nicholas v Thompson [1924] VLR 554........................................................................................74

VITIATING FACTORS: UNCONSCIONABILITY..........................................................76 Blomley v Ryan (1956) 99 CLR 362.............................................................................................76 Commercial Bank of Australia v Amadio (1983) 151 CLR 447.................................................77 Louth v Diprose (1992) 175 CLR 621..........................................................................................79 Bridgewater v Leahy (1998) 194 CLR 457..................................................................................80 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 214 CLR 51....................................................................................................................................80

REMEDIES............................................................................................................................83 ESSAY QUESTIONS.............................................................................................................84 The ‘practical benefit’ test (when determining consideration)..................................................84 The abolition of the doctrine of privity........................................................................................86 The role of ‘presumptions’ (in determining intention to create legal relations)........................87 The adoption of ‘intermediate term’ analysis in Australia.........................................................88

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OFFER Optional: Brambles Holdings v Bathurst City Council (2001) 53 NSWLR 153 Oceanic Sun Line Special Shipping Company Inc v Fay (1988) 165 CLR 197)

Electronic Transactions Act 2000 (NSW) 14B Invitation to treat regarding contracts 1. A proposal to form a contract made through one or more electronic communications that: a) is not addressed to one or more specific parties, and b) is generally accessible to parties making use of information systems, is to be considered as an invitation to make offers, unless it clearly indicates the intention of the party making the proposal to be bound in case of acceptance. (2) Subsection (1) extends to proposals that make use of interactive applications for the placement of orders through information systems. Gibson v Manchester City Council [1979] 1 WLR 294 [2.15] Facts: In 1970, Manchester city council which was controlled by the conservative party adopted a scheme allowing tenants of council housing to purchase the freehold title to their homes. The council wrote to Robert Gibson, stating that he may be prepared to sell the house at a nominated purchase price. Gibson completed the application without putting a purchase price. An election had gone underway and Labour had won. Before formal contracts were prepared, Council resolved to abandon the scheme and would complete only sales for which binding contracts had been completed. The trial judge held that there was no offer or acceptance and so the contract wasn’t binding. Ratio/judgement: In order for a contract to be binding there must be both offer and acceptance present. [296] LORD DIPLOCK: “… conventional approach of looking to see whether upon the true construction of the documents relied upon there can be discerned an offer and acceptance…” Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 [2.25] Facts: The defendants manufactured a device called the ‘Carbolic Smoke Ball’, which was claimed to precent colds and influenza. They placed an advertisement in the newspaper on how reliable the device was and how it would prevent the cold and influenza. The plaintiff purchased the device with reliance on the advertisement and used it in accordance to the manufacturer’s direction from 20th November till 17th January and contracted the flu. Trial judge stated that P was entitled to recover £100. Ratio/judgement: Advertisements are not offers. However, the court identifies an advertisement might be an offer in some circumstances- like when a sincere promise for a reward is made. An offer is an invitation to treat.

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MacRobertson Miller Airline Services v Commissioner of State Taxation (WA) (1975) 133 CLR 125 [2.35] Facts: MacRoberston Miller Airline have the authority within their agreement that whenever someone purchases a ticket from them, there was a condition printed on that ticket. It stated that: “the airline reserved the right to abandon any flight or cancel any ticket or booking and that upon abandonment or cancellation, the passenger would be entitled to a refund of so much of the fare as was proportionate to the part of the flight abandoned or cancelled, and the airline would be under no liability.” Ratio/judgement: It was held that there is no promise contained on the ticket; the ticket for carriage is an offer. Acceptance does not occur when ticket is purchased, but at some time afterwards. Acceptance may be: 1. An overt act consistent only with acceptance (eg. boarding the plane); or 1. The passenger’s failure to reject the offer after he has had an opportunity of learning the conditions upon which carriage is offered (but see Felthouse v Brindley) [138] STEPHEN J: … In the absence of particular conduct on the part of the passenger, acceptance of the offer which a carrier makes when a ticket is issued does not occur immediately upon its receipt by the passenger; the whole concept of a passenger’s acceptance of ticket conditions and of the need adequately to draw those conditions to his attention is dependent upon this- the ticket constitutes and offer and records term of condition. Paying for the ticket is not yet acceptance, because conditions haven’t been read yet. Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401 [2.60] Facts: Boot’s self-service shop sold drugs and goods. He had a registered pharmacist who looked after the sale of drugs. Whenever a customer took drugs to the cash register the pharmacist supervised that part of the transaction. The Pharmaceutical Society challenged this because it undermined the traditional role of its members in ...