contents - Carswell Desk Copy
advertisement
CONTENTS Contributors ...................................................................................... Preface ............................................................................................ Acknowledgments ............................................................................... Table of Cases .................................................................................... iii v ix xv CHAPTER 1 — AN INTRODUCTION TO THE STUDY OF THE LAW OF CONTRACTS: AN EDITOR’S COMMENT ........................ 1 1. The Classical Theory of Contract .................................................... 2 2. The Intersection of “Private” and “Public” Law ................................ 3 3. “Freedom of Contract” ................................................................. 4 4. What Promises are Enforceable? .................................................... 6 5. What Remedy for Breach? ............................................................ 6 6. Theories of Contract Law .............................................................. 7 7. Relational Contracts .................................................................... 10 8. First Nations and Treaties ............................................................. 11 9. Transcending Conceptual Boundaries .............................................. 12 10. A Final Word of Caution ............................................................... 13 CHAPTER 2 — FORMATION OF THE AGREEMENT: OFFER AND ACCEPTANCE ............................................................ 15 1. Introduction ............................................................................... 15 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. ............. Note .......................................................................................... R. v. Ron Engineering & Construction (Eastern) Ltd. .............................. Notes ......................................................................................... M.J.B. Enterprises Ltd. v. Defence Construction (1951) Ltd. ..................... 17 17 19 xvii 20 22 25 30 30 33 33 35 35 38 39 xviii CONTENTS Notes ......................................................................................... 47 3. Communication of Offer ............................................................... Blair v. Western Mutual Benefit Assn. ................................................. Notes and Questions ...................................................................... Williams v. Carwardine .................................................................. R. v. Clarke ................................................................................. Notes and Questions ...................................................................... 48 48 51 51 52 55 4. Acceptance ................................................................................. Livingstone v. Evans ...................................................................... Note and Questions ....................................................................... Butler Machine Tool Co. v. Ex-Cell-O Corp. ........................................ Question ..................................................................................... Tywood Industries Ltd. v. St. Anne-Nackawic Pulp & Paper Co. Ltd. .......... Ontario Law Reform Commission, Report On Sale Of Goods: The Battle Of The Forms ............................................................................... Notes and Questions ...................................................................... ProCD v. Matthew Zeidenberg and Silken Mountain Web Services, Inc. ....... Note .......................................................................................... Dawson v. Helicopter Exploration Co. ................................................ Felthouse v. Bindley ....................................................................... Notes and Questions ...................................................................... Saint John Tug Boat Co. v. Irving Refinery Ltd. ..................................... Eliason v. Henshaw ....................................................................... Note and Question ......................................................................... Carmichael v. Bank Of Montreal ....................................................... Note and Questions ....................................................................... 57 57 58 59 61 61 62 63 65 70 70 76 77 79 84 85 86 88 5. Communication of Acceptance ....................................................... (a) Instantaneous Methods of Communication ................................. Brinkibon Ltd. v. Stahag Stahl Und Stahlwarenhandelsgesellschaft mbH ...... Notes and Questions ...................................................................... Rudder v. Microsoft Corp. ............................................................... Notes ......................................................................................... (b) Mailed Acceptances ................................................................ Household Fire and Carriage Accident Insurance Co. v. Grant ................. Notes and Questions ...................................................................... Holwell Securities v. Hughes ............................................................ Notes and Questions ...................................................................... 89 89 89 92 94 98 98 98 102 103 106 6. Termination of Offer .................................................................... (a) Revocation ........................................................................... Byrne v. Van Tienhoven .................................................................. Note .......................................................................................... Dickinson v. Dodds ........................................................................ Notes and Questions ...................................................................... Errington v. Errington and Woods ..................................................... Notes and Questions ...................................................................... (b) Lapse .................................................................................. 106 106 106 108 108 110 112 113 114 CONTENTS Barrick v. Clark ............................................................................ Notes and Question ....................................................................... Manchester Diocesan Council Of Education v. Commercial and General Investments Ltd. ........................................................................ Notes and Questions ...................................................................... xix 114 117 118 123 CHAPTER 3 — FORMATION OF THE AGREEMENT: CERTAINTY OF TERMS ...................................................................... 125 1. Introduction ............................................................................... 125 2. Vagueness .................................................................................. R. v. CAE Industries Ltd. ................................................................. Notes and Question ....................................................................... 127 127 132 3. Incomplete Terms ........................................................................ May & Butcher Ltd. v. R. ................................................................. Note .......................................................................................... Hillas & Co. v. Arcos Ltd. ............................................................... Foley v. Classique Coaches Ltd. ........................................................ Notes and Questions ...................................................................... 133 134 136 136 140 141 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 ...................................................................... 145 147 149 149 153 154 158 5. Anticipation of Formalization ........................................................ Bawitko Investments Ltd. v. Kernels Popcorn Ltd. .................................. Notes ......................................................................................... 161 162 167 CHAPTER 4 — THE ENFORCEMENT OF PROMISES ............................. 171 1. 171 172 173 174 175 2. Introduction and Study Guide ........................................................ (a) Formality ............................................................................. (b) Seriously Intended Promises .................................................... (c) Reliance ............................................................................... (d) Exchange and Bargains ........................................................... The Governors Of Dalhousie College At Halifax v. The Estate Of Arthur Boutilier, Deceased ................................................................... Wood v. Lucy, Lady Duff-Gordon ...................................................... Question ..................................................................................... 176 182 183 Past Consideration ....................................................................... Eastwood v. Kenyon ...................................................................... Note and Question ......................................................................... Lampleigh v. Brathwait ................................................................... Notes and Questions ...................................................................... 183 183 185 185 185 xx CONTENTS Thomas v. Thomas ......................................................................... Notes and Questions ...................................................................... 186 188 3. Forbearance ............................................................................... B. (D.C.) v. Arkin .......................................................................... Notes and Question ....................................................................... 189 189 192 4. Pre-Existing Legal Duty ................................................................ (a) Public Duty .......................................................................... Question ..................................................................................... (b) Duty Owed to a Third Party .................................................... Pao On v. Lau Yiu Long .................................................................. Notes and Question ....................................................................... (c) Duty Owed to the Promisor ..................................................... Gilbert Steel Ltd. v. University Const. Ltd. ........................................... Notes and Questions ...................................................................... Williams v. Roffey Bros. & Nicholls (Contractors) Ltd. ............................ Notes and Questions ...................................................................... (i) Accord and Satisfaction ...................................................... Foakes v. Beer ............................................................................. Note .......................................................................................... Re Selectmove Ltd. ........................................................................ Notes and Questions ...................................................................... Foot v. Rawlings ........................................................................... Notes and Questions ...................................................................... (ii) Statute ............................................................................ Judicature Act .............................................................................. Notes and Questions ...................................................................... 192 192 193 193 193 196 197 197 200 202 206 207 207 209 210 211 212 214 215 215 215 5. Waiver and Promissory Estoppel .................................................... 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. .......... Note .......................................................................................... International Knitwear Architects Inc. v. Kabob Investments Ltd. ............... Notes and Questions ...................................................................... (d) The Reliance ......................................................................... W.J. Alan & Co. v. El Nasr Export & 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 ......................... Note and Question ......................................................................... (e) Sword or Shield? ................................................................... Petridis v. Shabinsky ...................................................................... 216 216 219 220 220 221 222 222 225 225 230 230 231 232 232 235 236 238 239 239 CONTENTS xxi Note and Questions ....................................................................... Robichaud c. Caisse Populaire De Pokemouche Ltée .............................. Question ..................................................................................... Combe v. Combe ........................................................................... Notes and Questions ...................................................................... Waltons Stores (Interstate) Pty. Ltd. v. Maher ....................................... Notes and Question ....................................................................... M. (N.) v. A. (A.T.) ......................................................................... 241 242 243 243 245 245 253 254 6. 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) ................. 257 257 258 258 260 263 263 264 266 7. Formality: Promises Under Seal ..................................................... Royal Bank v. Kiska ....................................................................... Notes and Questions ...................................................................... 269 270 271 8. Formality: The Requirement of Writing ........................................... (a) Introduction ......................................................................... Ontario Law Reform Commission, Report On Amendment Of The Law Of Contract ................................................................................. (b) Purposes Of Writing Requirements ........................................... (c) 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. ...................................... Questions .................................................................................... (C) The Requisite Signature ................................................ (D) Joinder of Documents ................................................... (iii) Categories of Contracts Under the Statute ................................ (A) Contracts to Charge an Executor 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 ........................................................................... 271 271 273 275 276 276 277 277 277 277 278 279 279 280 280 280 281 281 282 282 285 285 290 291 xxii CONTENTS Notes ......................................................................................... (d) Should Writing Requirements be Retained or Abolished? .............. 293 294 CHAPTER 5 — PRIVITY OF CONTRACT .............................................. 297 1. Introduction ............................................................................... 297 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. .......................... Notes and Questions ...................................................................... 297 298 298 299 302 3. Ways in Which a Third Party May Acquire the Benefit ....................... (a) Statute ................................................................................. Notes and Questions ...................................................................... (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 v. Can-Dive Services Ltd. ............................ Notes and Questions ...................................................................... 302 303 304 305 305 306 308 308 309 312 313 315 319 320 320 329 330 332 332 332 337 4. Privity and Contract Theory .......................................................... 338 CHAPTER 6 — CONTINGENT AGREEMENTS ...................................... 339 1. Introduction ............................................................................... 339 2. Offer, Option or Contract? ............................................................ Wiebe v. Bobsien ........................................................................... Wiebe v. Bobsien ........................................................................... Notes and Questions ...................................................................... 341 342 348 350 3. Absence of Consideration and Uncertain Terms ................................. 353 4. Reciprocal Subsidiary Obligations .................................................. Dynamic Transport Ltd. v. O.K. Detailing Ltd. ...................................... Notes and Questions ...................................................................... 354 355 357 CONTENTS xxiii Eastwalsh Homes Ltd. v. Anatal Developments Ltd. ................................ Notes and Questions ...................................................................... 359 362 Unilateral Waiver ........................................................................ Turney v. Zhilka ............................................................................ Beauchamp v. Beauchamp ............................................................... Barnett v. Harrison ........................................................................ Notes and Questions ...................................................................... 363 364 365 366 376 CHAPTER 7 — REPRESENTATIONS AND TERMS; CLASSIFICATIONS AND CONSEQUENCES ................................................ 377 1. Introduction ............................................................................... 377 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 ...................................................................... Redican v. Nesbitt ......................................................................... Notes and Questions ...................................................................... 378 379 382 382 383 384 386 387 393 394 397 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 .................................................................................... 397 398 402 402 404 404 408 4. Statutory Reform ........................................................................ Ontario Law Reform Commission, Report On Amendment Of The Law Of Contract ................................................................................. Note and Questions ....................................................................... Fair Trading Act ........................................................................... Notes and Questions ...................................................................... 408 5. 5. 6. 408 412 412 415 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 ......................................................................... 421 429 The Parol Evidence Rule ............................................................... (a) The Scope and Rationale of the Rule .......................................... Zell v. American Seating Co. ............................................................ 430 430 432 416 417 419 xxiv CONTENTS 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 ...................................................................... 436 438 441 441 443 443 446 448 456 457 457 457 7. Classification of Terms ................................................................. Hong Kong Fir Shipping Co. Ltd. v. Kawasaki Kisen Kaisha Ltd. ............... Notes and Questions ...................................................................... Krawchuk v. Ulrychova .................................................................. Notes and Questions ...................................................................... Wickman Machine Tool Sales Ltd. v. L. Schuler A.G. .............................. Questions .................................................................................... 461 462 467 468 472 474 479 8. Discharge by Performance or Breach .............................................. Fairbanks Soap Co. v. Sheppard ....................................................... Markland Associates Ltd. v. Lohnes ................................................... Notes and Questions ...................................................................... Sumpter v. Hedges ......................................................................... Questions .................................................................................... Howe v. Smith .............................................................................. Note and Questions ....................................................................... Stevenson v. Colonial Homes Ltd. ...................................................... Questions .................................................................................... 479 481 484 486 486 487 487 489 489 492 CHAPTER 8 — STANDARD FORM CONTRACTS AND EXCLUSION CLAUSES .................................................................. 493 1. Introduction ............................................................................... Machtinger v. Hoj Industries Ltd. ...................................................... 493 494 2. Some General Principles of Contractual Interpretation ....................... Scott v. Wawanesa Mutual Insurance Co. ............................................ Note .......................................................................................... 497 499 502 3. Control of Standard Form Contracts and Exclusion Clauses ................ (a) Introduction ......................................................................... (b) Development and Use of the Standard Form ............................... Trebilcock, The Common Law of Restraint of Trade .............................. (c) The Use of Exclusion Clauses ................................................... (d) Judicial Treatment of Standard Form Contracts and Exclusion Clauses ................................................................................ (i) Incorporation—Unsigned Documents ..................................... Parker v. South Eastern Ry. Co.; Gabell v. South Eastern Ry. Co. .............. 502 502 503 505 508 509 509 509 CONTENTS xxv Notes and Questions ...................................................................... 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) Incorporation—Signed Documents ........................................ Tilden Rent-a-car Co. v. Clendenning ................................................. Delaney v. Cascade River Holidays Ltd. .............................................. Notes ......................................................................................... (iii) Statutory Notice Provisions .................................................. (iv) Strict Construction ............................................................. (v) Fundamental Breach .......................................................... Karsales (Harrow) Ltd. v. Wallis ....................................................... Note .......................................................................................... Photo Production Ltd. v. Securicor Transport Ltd. ................................. Notes and Questions ...................................................................... Hunter Engineering Co. Inc. v. Syncrude Canada Ltd. ............................ Notes ......................................................................................... (vi) Unconscionability and Unreasonableness ................................. Davidson v. Three Spruces Realty Ltd. ................................................ Notes and Question ....................................................................... Fraser Jewellers (1982) Ltd. v. Dominion Electric Protection Co. .............. Solway v. Davis Moving & Storage Inc. (c.o.b. Kennedy Moving Systems) .... Questions .................................................................................... 512 514 517 517 522 526 526 527 531 536 539 540 543 543 545 545 552 552 567 568 568 573 576 580 584 CHAPTER 9 — MISTAKE .................................................................. 585 1. Introduction ............................................................................... 585 2. Mistake as to Terms ..................................................................... (a) Approaches to Interpretation ................................................... Lindsey v. Heron & Co. .................................................................. Question ..................................................................................... Staiman Steel Ltd. v. Commercial & Home Builders Ltd. .......................... Note .......................................................................................... Glasner v. Royal Lepage Real Estate Services Ltd. ................................. (b) “Snapping Up” a Mistaken Offer .............................................. R. v. Ron Engineering & Construction (Eastern) Ltd. .............................. Note and Questions ....................................................................... Smith v. Hughes ............................................................................ Questions .................................................................................... 587 587 587 590 590 592 592 593 596 600 602 606 3. Mistaken Assumptions .................................................................. (a) Common Law ....................................................................... Bell v. Lever Brothers Ltd. ............................................................... Note and Questions ....................................................................... McRae v. Commonwealth Disposals Commission ................................... Notes and Questions ...................................................................... Toronto-Dominion Bank v. Fortin (No. 2) ............................................ 607 607 607 612 612 617 618 xxvi CONTENTS Notes and Questions ...................................................................... (b) Equity ................................................................................. Great Peace Shipping v. Tsavliris Salvage ........................................... Note and Questions ....................................................................... 622 623 624 628 4. Mistake and Third Party Interests .................................................. (a) Mistaken Identity .................................................................. Shogun Finance Ltd. v. Hudson ........................................................ Questions .................................................................................... (b) Documents Mistakenly Signed: Non Est Factum .......................... Saunders v. Anglia Building Society ................................................... Marvco Color Research Ltd. v. Harris ................................................ Notes and Questions ...................................................................... 629 629 629 635 635 637 639 646 5. Rectification ............................................................................... Bercovici v. Palmer ....................................................................... Bercovici v. Palmer ....................................................................... Note and Question ......................................................................... Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd. ........... Notes ......................................................................................... 647 647 649 650 651 659 CHAPTER 10 — FRUSTRATION ......................................................... 661 1. Introduction ............................................................................... Collins, The Law Of Contract ........................................................... Atiyah, An Introduction To The Law Of Contract .................................. Posner, Economic Analysis Of Law ................................................... Trebilcock, The Limits Of Freedom Of Contract .................................... 661 662 663 664 666 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. ............................... Question ..................................................................................... Kesmat Invt. Inc. v. Indust. Machinery Co. & Canadian Indemnity Co. ........ Notes and Questions ...................................................................... 667 667 668 668 670 670 672 672 674 674 678 678 681 681 682 682 685 686 687 3. Self-Induced Frustration ............................................................... Maritime National Fish Ltd. v. Ocean Trawlers Ltd. ............................... 688 688 CONTENTS Notes and Questions ...................................................................... 4. xxvii 689 Should the Doctrine of Frustration be Expanded: Commercial Impracticality and Social Force Majeure? ........................................ Wilhelmsson, “‘Social Force Majeure’—a New Concept In Nordic Consumer Law” ........................................................................ Question ..................................................................................... Conklin, A Contract ....................................................................... 691 692 693 5. Anticipating the Unforeseeable: Force Majeure Clauses ...................... Atlantic Paper Stock Ltd. v. St. Anne-Nackawic Pulp & Paper Co. ............. Notes and Questions ...................................................................... 695 696 698 6. Effect of Frustration ..................................................................... Ontario Law Reform Commission, Report On Amendment Of The Law Of Contract ................................................................................. Notes and Questions ...................................................................... 699 700 702 CHAPTER 11 — LIMITS ON THE PURSUIT OF SELF INTEREST: AN EDITOR’S COMMENT ................................................ 705 1. The Traditional View ................................................................... 705 2. The Relationship Between Contracts and Other Areas of Private Law .... 707 3. Overriding General Principles ........................................................ O’Byrne, Good Faith In Contractual Performance: Recent Developments ..... 708 709 CHAPTER 12 — THE PROTECTION OF WEAKER PARTIES .................... 715 1. Introduction ............................................................................... 715 2. Duress ....................................................................................... Pao On v. Lau Yiu Long .................................................................. Note and Questions ....................................................................... Gordon v. Roebuck ........................................................................ Questions .................................................................................... 716 716 717 718 721 3. Undue Influence .......................................................................... Geffen v. Goodman Estate ............................................................... Notes and Questions ...................................................................... Royal Bank Of Scotland Plc v. Etridge (No. 2) ...................................... Questions .................................................................................... 722 724 731 732 740 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 ..................................................................... Notes ......................................................................................... 741 741 741 745 747 748 748 753 690 xxviii CONTENTS 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 ....................................................................... 754 757 759 760 761 761 762 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 ....................................................................... 764 764 764 765 766 766 770 CHAPTER 13 — ILLEGALITY AND PUBLIC POLICY ............................. 771 1. Introduction ............................................................................... 771 2. Contracts Contrary to Public Policy at Common Law ......................... (a) Restraint Of Trade ................................................................ J.G. Collins Ins. Agencies Ltd. v. Elsley ............................................... 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 ..................................................................................... 773 773 773 779 780 788 790 794 802 3. Effects of Illegality ....................................................................... Still v. Minister Of National Revenue .................................................. Notes and Questions ...................................................................... 803 803 816 CHAPTER 14 — REMEDIES ............................................................... 821 1. Introduction ............................................................................... 821 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 Expectation Interest ......................................................... (b) The Reliance Interest .............................................................. McRae v. Commonwealth Disposals Comm. ......................................... Note and Questions ....................................................................... Bowlay Logging Ltd. v. Domtar Ltd. ................................................... Note and Question ......................................................................... 822 822 822 824 824 832 834 834 838 838 842 5. CONTENTS 3. xxix Sunshine Vacation Villas Ltd. v. Governor and Company Of Adventurers Of England Trading Into Hudson’s Bay .............................................. Questions .................................................................................... (c) Restitution ........................................................................... Attorney-General v. Blake (Jonathan Cape Ltd. Third Party) .................... Notes and Questions ...................................................................... 843 846 846 847 855 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 ................................................... Question ..................................................................................... 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. ........................................................... Notes ......................................................................................... (b) Certainty, Causation and Remoteness ........................................ (i) Certainty ......................................................................... (ii) Causation ........................................................................ Hodgkinson v. Simms ..................................................................... Notes and Questions ...................................................................... (iii) Remoteness ..................................................................... Hadley v. Baxendale ...................................................................... Note .......................................................................................... Victoria Laundry (Windsor) Ltd. v. Newman Indust. Ltd. .......................... Question ..................................................................................... 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 ....................................................................... White and Carter (Councils) Ltd. v. McGregor ...................................... Notes and Question ....................................................................... (d) Time of Measurement of Damages ............................................ Semelhago v. Paramadevan ............................................................. 855 855 855 855 857 858 858 862 862 863 863 865 866 867 869 870 870 879 888 889 891 891 891 892 892 900 900 901 903 903 907 907 909 910 913 914 914 922 923 925 926 926
