CONTRACTS: CASES AND COMMENTARIES, 8th Edition TABLE OF CONTENTS Contributors.................................................................................................................... iii Preface ............................................................................................................................ v Acknowledgments............................................................................................................ i Table of Cases................................................................................................................. v CHAPTER 1 AN INTRODUCTION TO THE STUDY OF THE LAW OF CONTRACTS: AN EDITOR'S COMMENT 1. The Classical Theory of Contract 2. The Intersection of “Private” and “Public” Law 3. “Freedom of Contract”: Reality and Regulatory Response 4. “Freedom of Contract”: Common Law Response 5. What Promises are Enforceable? 6. What Remedy for Breach? 7. Theories of Contract Law 8. Relational Contracts 9. Transcending Conceptual Boundaries 10. A Final Word of Caution CHAPTER 2 FORMATION OF THE AGREEMENT: OFFER AND ACCEPTANCE Learning Objectives 1. Introduction 2. Offer and Invitation to Treat Canadian Dyers Association Ltd. v. Burton Note and Questions Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd. Note and Questions Carlill v. Carbolic Smoke Ball Co. Note and Questions Goldthorpe v. Logan Notes and Questions Harvela Investments Ltd. v. Royal Trust Co. of Canada (C.I.) Ltd. R. v. Ron Engineering & Construction (Eastern) Ltd. Notes M.J.B. Enterprises Ltd. v. Defence Construction (1951) Ltd. Notes 3. Communication of Offer Blair v. Western Mutual Benefit Assn. Notes and Questions Williams v. Carwardine R. v. Clarke Notes and Questions Contracts: Cases and Commentary, 8th ed. -- 1 4. Acceptance Livingstone v. Evans Note and Questions Butler Machine Tool Co. v. E -Cell-O Corp. Question Tywood Industries Ltd. v. St. Anne-Nackawic Pulp & Paper Co. Ltd. Notes and Questions ProCD v. Matthew Zeidenberg and Silken Mountain Web Services, Inc. Question Dawson v. Helicopter E ploration Co. Felthouse v. Bindley Notes and Questions Saint John Tug Boat Co. v. Irving Refinery Ltd. Eliason v. Henshaw Questions 5. Communication of Acceptance (a) Mailed Acceptances Household Fire & Carriage Accident Insurance Co. v. Grant Notes and Questions Holwell Securities v. Hughes Question (b) Instantaneous Methods of Communication Brinkibon Ltd. v. Stahag Stahl Und Stahlwarenhandelsgesellschaft mbH Notes and Questions Rudder v. Microsoft Corp. Notes 6. Termination of Offer (a) Revocation Dickinson v. Dodds Notes and Questions Byrne v. Van Tienhoven Note Errington v. Errington and Woods Questions (b) Lapse Barrick v. Clark Notes and Questions CHAPTER 3 FORMATION OF THE AGREEMENT: CERTAINTY OF TERMS Learning Objectives 1. Introduction 2. Vagueness R. v. CAE Industries Ltd. Note 3. Incomplete Terms May & Butcher Ltd. v. R. Contracts: Cases and Commentary, 8th ed. -- 2 Note Hillas & Co. v. Arcos Ltd. Foley v. Classique Coaches Ltd. Notes and Questions 4. Agreements to Negotiate Empress Towers Ltd. v. Bank of Nova Scotia Note Mannpar Enterprises Ltd. v. Canada Note and Questions Wellington City Council v. Body Corporate 51702 (Wellington) Notes and Questions 5. Anticipation of Formalization Bawitko Investments Ltd. v. Kernels Popcorn Ltd. Notes CHAPTER 4 THE ENFORCEMENT OF PROMISES Learning Objectives 1. Introduction (a) Promises Enforced as Contracts (b) Promises Enforced as Deeds (c) Promises Enforced by Way of Estoppel 2. E change and Bargains The Governors of Dalhousie College at Halifa v. The Estate of Arthur Boutilier, Deceased Brantford General Hospital Foundation v. Marquis Estate Wood v. Lucy, Lady Duff-Gordon Question 3. Past Consideration Eastwood v. Kenyon Question Lampleigh v. Brathwait Notes and Questions 4. Consideration Must be of Value in the Eyes of the Law Thomas v. Thomas Notes and Questions 5. Bona Fide Compromises of Disputed Claims Callisher v. Bischoffsheim Notes 6. Pre-E isting Legal Duty (a) Introduction (b) Public Duty Question (c) Duty Owed to a Third Party Pao On v. Lau Yiu Long Note (d) Duty Owed to the Promisor (i) Promises to Pay or Provide More Contracts: Cases and Commentary, 8th ed. -- 3 7. 8. Stilk v. Myrick Note Gilbert Steel Ltd. v. University Const. Ltd. Note Williams v. Roffey Bros. & Nicholls (Contractors) Ltd. Note Greater Fredericton Airport Authority Inc. v. NAV Canada Note and Questions Promises to Accept Less (a) Accord and Satisfaction Foakes v. Beer Re Selectmove Ltd. Notes and Questions Foot v. Rawlings Notes and Questions (b) Statute Judicature Act Notes and Questions Promissory Estoppel and Waiver Hughes v. Metropolitan Railway Company Central London Property Trust Ltd. v. High Trees House Ltd. Note and Questions (a) The Nature of the Representation John Burrows Ltd. v. Subsurface Surveys Ltd. Notes and Question (b) The Equities D. & C. Builders Ltd. v. Rees (c) The Notice Saskatchewan River Bungalows Ltd. v. Maritime Life Assurance Co. International Knitwear Architects Inc. v. Kabob Investments Ltd. Notes (d) The Reliance W.J. Alan & Co. v. El Nasr E port & Import Co. Questions Société Italo-Belge Pour le Commerce et l'Industrie S.A. v. Palm and Vegetable Oils (Malaysia) Sdn Bhd; The Post Chaser Notes and Questions (e) Sword or Shield? Combe v. Combe Notes and Questions Petridis v. Shabinsky Questions Robichaud c. Caisse Populaire de Pokemouche Ltée Note and Question Waltons Stores (Interstate) Pty. Ltd. v. Maher Notes and Question Contracts: Cases and Commentary, 8th ed. -- 4 M. (N.) v. A. (A.T.) Note 9. Intention to Create Legal Relations (a) Introduction (b) Family Arrangements Balfour v. Balfour Notes and Questions (c) Commercial Arrangements Rose and Frank Co. v. J.R. Crompton and Bros. Ltd. Notes and Questions Toronto Dominion Bank v. Leigh Instruments Ltd. (Trustee Of) 10. Formality: Promises Under Seal Royal Bank v. Kiska Notes and Questions 11. Formality: The Requirement of Writing (a) Introduction Statute of Frauds (b) Operation of the Statute (i) Effects of Non-Compliance (ii) The Requirement of a Sufficient Note or Memorandum (A) Form of the Note or Memorandum (B) Contents of the Note or Memorandum Dynamic Transport Ltd. v. O.K. Detailing Ltd. (C) The Requisite Signature (D) Joinder of Documents (iii) Categories of Contracts Under the Statute (A) Contracts to Charge an E ecutor or Administrator on a Special Promise to Answer Damages Out of His Own Estate (B) Contracts Made Upon Consideration of Marriage (C) Contracts to Answer for the Debt, Default or Miscarriage of Another Person (D) Contracts Not to be Performed Within a Year (E) Contracts for the Sale of an Interest in Land Deglman v. Guaranty Trust Co. Note Thompson v. Guaranty Trust Co. Notes and Questions Lensen v. Lensen Notes CHAPTER 5 PRIVITY OF CONTRACT Learning Objectives 1. Introduction 2. The History of the Doctrine of Privity and Third Party Beneficiaries Provender v. Wood Tweddle v. Atkinson Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. Contracts: Cases and Commentary, 8th ed. -- 5 Notes and Questions 3. Ways in Which a Third Party May Acquire the Benefit (a) Statute Note (b) Specific Performance Beswick v. Beswick Beswick v. Beswick Questions (c) Trust Vandepitte v. Preferred Accident Insurance Co. (d) Agency McCannell v. Mabee McLaren Motors Ltd. New Zealand Shipping Co. Ltd. v. A.M. Satterthwaite & Co. Ltd. Notes and Question (e) Employment London Drugs Ltd. v. Kuehne & Nagel International Ltd. Notes and Questions Edgeworth Construction Ltd. v. N.D. Lea & Associates Ltd. Notes and Questions (f) Subrogation Fraser River Pile & Dredge Ltd. v. Can-Dive Services Ltd. Notes and Questions 4. Privity and Contract Theory CHAPTER 6 CONTINGENT AGREEMENTS Learning Objectives 1. Introduction 2. Intention, Certainty and Consideration Wiebe v. Bobsien Wiebe v. Bobsien Notes and Questions 3. Reciprocal Subsidiary Obligations Dynamic Transport Ltd. v. O.K. Detailing Ltd. Notes and Questions Remedies for Breach of Subsidiary Obligations Eastwalsh Homes Ltd. v. Anatal Developments Ltd. Notes and Questions 4. Unilateral Waiver Turney v. Zhilka Beauchamp v. Beauchamp Barnett v. Harrison Notes and Questions CHAPTER 7 REPRESENTATIONS AND TERMS; CLASSIFICATIONS AND CONSEQUENCES Contracts: Cases and Commentary, 8th ed. -- 6 Learning Objectives 1. Introduction 2. Misrepresentation and Rescission Redgrave v. Hurd Questions Smith v. Land and House Property Corp. Notes and Questions Bank of British Columbia v. Wren Developments Ltd. Note and Questions Kupchak v. Dayson Holdings Ltd. Notes and Questions 3. Representations and Terms Heilbut, Symons & Co. v. Buckleton Note and Questions Dick Bentley Productions Ltd. v. Harold Smith (Motors) Ltd. Questions Leaf v. International Galleries Questions 4. Statutory Reform Ontario Law Reform Commission, Report on Amendment of the Law of Contract Note and Questions Fair Trading Act Notes and Questions 5. Concurrent Liability in Contract and Tort Sodd Corp. v. N. Tessis Notes and Questions BG Checo International Ltd. v. British Columbia Hydro & Power Authority Note and Question 6. The Parol Evidence Rule (a) The Scope and Rationale of the Rule Zell v. American Seating Co. Notes and Questions Hawrish v. Bank of Montreal Note and Questions Bauer v. Bank of Montreal Notes and Questions J. Evans & Son (Portsmouth) Ltd. v. Merzario (Andrea) Ltd. Notes and Questions Gallen v. Butterley Note and Questions (b) Statutory Modification of the Parol Evidence Rule Trade Practice Act Notes and Questions 7. Classification of Terms Hong Kong Fir Shipping Co. Ltd. v. Kawasaki Kisen Kaisha Ltd. Notes and Questions Contracts: Cases and Commentary, 8th ed. -- 7 Wickman Machine Tool Sales Ltd. v. L. Schuler A.G. Questions 8. Discharge by Performance or Breach Fairbanks Soap Co. v. Sheppard Notes and Questions Sumpter v. Hedges Questions Howe v. Smith Note and Questions Stevenson v. Colonial Homes Ltd. Questions CHAPTER 8 STANDARD FORM CONTRACTS AND E CLUSION CLAUSES Learning Objectives 1. Introduction 2. Implied Terms Machtinger v. Hoj Industries Ltd. 3. Some General Principles of Contractual Interpretation Scott v. Wawanesa Mutual Insurance Co. 4. Judicial Control of Standard Form Contracts and E clusion Clauses (a) Introduction (i) Development and Use of the Standard Form Trebilcock, The Common Law of Restraint of Trade (ii) Use of E clusion Clauses (b) Incorporation (i) Unsigned Documents Thornton v. Shoe Lane Parking Ltd. Note Interfoto Picture Library Ltd. v. Stiletto Visual Programmes Ltd. McCutcheon v. David MacBrayne Ltd. Notes and Question (ii) Signed Documents Tilden Rent-a-car Co. v. Clendenning Karroll v. Silver Star Mountain Resorts Ltd. Notes (c)Strict Construction (d) Doctrine of Fundamental Breach Karsales (Harrow) Ltd. v. Wallis Note Photo Production Ltd. v. Securicor Transport Ltd. Notes Hunter Engineering Co. Inc. v. Syncrude Canada Ltd. Note (e)Fundamental Breach/Unconscionability Post-Hunter Fraser Jewellers (1982) Ltd. v. Dominion Electric Protection Co. Notes Contracts: Cases and Commentary, 8th ed. -- 8 Solway v. Davis Moving & Storage Inc. (c.o.b. Kennedy Moving Systems) Questions Plas-Te Canada Ltd. v. Dow Chemical of Canada Ltd. Questions CHAPTER 9 MISTAKE Learning Objectives 1. Introduction Note 2. Both Parties Mistakenly Believe They Are in Agreement Staiman Steel Ltd. v. Commercial & Home Builders Ltd. 3. Unilateral Mistakes as to Terms (a) Distinguishing Mistakes as to Terms and Mistaken Assumptions Smith v. Hughes Question (b) “Snapping Up” a Mistaken Offer Notes and Questions (c) Mistakes in Tender Bids R. v. Ron Engineering & Construction (Eastern) Ltd. Notes and Question 4. Agreements Made Under Mistaken Assumptions (a) Common Law Bell v. Lever Brothers Ltd. Question McRae v. Commonwealth Disposals Commission Notes and Questions (b) Equity Solle v. Butcher Notes Great Peace Shipping v. Tsavliris Salvage Note and Questions Miller Paving Ltd. v. B. Gottardo Construction Ltd. Note 5. Mistaken Identity Shogun Finance Ltd. v. Hudson Questions 6. Documents Mistakenly Signed: Non Est Factum Saunders v. Anglia Building Society Marvco Color Research Ltd. v. Harris Notes and Questions 7. Rectification Bercovici v. Palmer Bercovici v. Palmer Note and Question Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd. Contracts: Cases and Commentary, 8th ed. -- 9 Notes CHAPTER 10 FRUSTRATION Learning Objectives 1. Introduction Collins, The Law of Contract Posner, Economic Analysis of Law Trebilcock, The Limits of Freedom of Contract 2. Development and Application of the Doctrine Paradine v. Jane Note and Question Taylor v. Caldwell Note Can. Govt. Merchant Marine Ltd. v. Can. Trading Co. Notes and Question Claude Neon General Advertising Ltd. v. Sing Notes and Questions Davis Contractors Ltd. v. Fareham U.D.C. Notes Capital Quality Homes Ltd. v. Colwyn Construction Ltd. Question and Note Victoria Wood Development Corp. v. Ondrey Question KBK No. 138 Ventures Ltd. v. Canada Safeway Ltd. Notes and Question Kesmat Invt. Inc. v. Indust. Machinery Co. & Canadian Indemnity Co. Notes and Questions 3. A Restatement Edwinton Commercial Corporation and Another v. Tsavliris Russ (Worldwide Salvage and Towage) Ltd. The Sea Angel Questions 4. Self-Induced Frustration Maritime National Fish Ltd. v. Ocean Trawlers Ltd. Notes and Questions 5. Should the Doctrine of Frustration be E panded: Commercial Impracticality and Social Force Majeure? Wilhelmsson, “‘Social Force Majeure’—A New Concept in Nordic Consumer Law” Question Conklin, A Contract 6. Anticipating the Unforeseeable: Force Majeure Clauses Atlantic Paper Stock Ltd. v. St. Anne-Nackawic Pulp & Paper Co. Notes and Questions 7. Effect of Frustration Ontario Law Reform Commission, Report on Amendment of the Law of Contract Notes and Questions Contracts: Cases and Commentary, 8th ed. -- 10 CHAPTER 11 THE PROTECTION OF WEAKER PARTIES Learning Objectives 1. Introduction 2. Duress Greater Fredericton Airport Authority Inc. v. NAV Canada 3. Undue Influence Geffen v. Goodman Estate Notes and Questions Royal Bank Of Scotland Plc v. Etridge (No. 2) Questions 4. Unconscionability (a) The Traditional Doctrine Morrison v. Coast Finance Ltd. Marshall v. Can. Permanent Trust Co. Questions (b) A Wider View Lloyds Bank v. Bundy Harry v. Kreutziger (c) The Scope of the Principle Tiplady, The Judicial Control of Contractual Unfairness Note (d) Unconscionability Legislation Unconscionable Transactions Relief Act Notes and Question 5. Incapacity (a) Infancy Ontario Law Reform Commission, Report on Amendments of the Law of Contract Notes (b) Mental Incompetence Hart v. O'Connor Notes and Question CHAPTER 12 ILLEGALITY AND PUBLIC POLICY Learning Objectives 1. Introduction 2. Contracts Contrary to Public Policy at Common Law (a) Restraint Of Trade KRG Insurance Brokers (Western) Inc. v. Shafron Question Trebilcock, The Common Law of Restraint of Trade Notes and Questions (b) Other Public Policies Shanner, The Right to Procreate: When Rights Claims Have Gone Wrong Question Contracts: Cases and Commentary, 8th ed. -- 11 3. Effects of Illegality Still v. Minister of National Revenue Notes and Questions CHAPTER 13 REMEDIES Learning Objectives 1. Introduction 2. Damages: The Interests Protected Holmes, The Path of the Law Posner, Economic Analysis of Law Notes Fuller and Perdue, The Reliance Interest in Contract Damages (a) The E pectation Interest (b) The Reliance Measure of Damages McRae v. Commonwealth Disposals Comm. Note and Questions Bowlay Logging Ltd. v. Domtar Ltd. Note and Question Sunshine Vacation Villas Ltd. v. Governor and Company of Adventurers of England Trading into Hudson's Bay Questions (c) The Restitution Measure of Damages Attorney-General v. Blake (Jonathan Cape Ltd. Third Party) Notes and Questions 3. Damages: The Boundaries of Recovery (a) Circumscribing the Zone of Protected Interests (i) Loss of a Chance Chaplin v. Hicks Questions (ii) Cost of Completion v. Difference in Value Groves v. John Wunder Co. Notes and Question Posner, Economic Analysis of Law Nu-West Homes Ltd. v. Thunderbird Petroleums Ltd. Notes and Questions (iii) Loss of Enjoyment and Other Intangible Interests Jarvis v. Swans Tours Note and Questions (iv) Aggravated and Punitive Damages Vorvis v. Insurance Corp. of British Columbia Wallace v. United Grain Growers Ltd. Notes and Questions Whiten v. Pilot Insurance Co. Question (b) Certainty, Causation and Remoteness (i) Certainty Contracts: Cases and Commentary, 8th ed. -- 12 4. (ii) Causation Hodgkinson v. Simms Notes and Questions (iii) Remoteness Hadley v. Ba endale Note and Question Victoria Laundry (Windsor) Ltd. v. Newman Indust. Ltd. Questions Scyrup v. Economy Tractor Parts Ltd. Note and Questions Koufos v. Czarnikow (C.) (the Heron II) Note and Questions (c) Mitigation Asamera Oil Corp. v. Sea Oil & General Corp. Note and Questions (d) Time of Measurement of Damages Semelhago v. Paramadevan Question (e) Liquidated Damages, Deposits and Forfeitures Shatilla v. Feinstein Questions H.F. Clarke Ltd. v. Thermidaire Corp. Notes and Questions J.G. Collins Insurance Agencies Ltd. v. Elsley Questions Stockloser v. Johnson Notes and Questions Equitable Remedies (a) Specific Performance John E. Dodge Holdings Ltd. v. 805062 Ontario Ltd. Notes and Questions (b) Defences to Actions for Specific Performance (i) Mutuality of Remedy (ii) Misrepresentation and Mistake (iii) Conduct of the Plaintiff (iv) Hardship (v) Other Equitable Defences (c) Injunctions (d) Contracts of Personal Service Warner Bros. Pictures Inc. v. Nelson Note and Questions (e) Interim and Interlocutory Injunctions Zipper Transportation Services Ltd. v. Korstrom Zipper Transportation Services Ltd. v. Korstrom Note and Questions Contracts: Cases and Commentary, 8th ed. -- 13 Inde Contracts: Cases and Commentary, 8th ed. -- 14