Sylva Švejdarová
Aspects of Contract and Negligence for Business
Terms in Contracts (Meanings and Effects)
1. Introduction (5 minutes)
2. Promissory and non-promissory terms (10 minutes)
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3 types of promissory obligation: conditions, innominate (or intermediate) terms,
warranties
Conditions: The Mihalis Angelos (1971), Bunge Corporation v. Tradax Export SA (1981),
Compagnie Commerciale Sucre et Denrees v. C Czarnikow (1990), In BS & N Ltd (BVI) v.
Micado Shipping Ltd (Malta) (2001)
Innominate terms: Hongkong Fir Shipping Co. Ltd v. Kawasaki Kisen Kaisha Ltd (1962)
Warranties: City & Westminster Properties (1934) Ltd v. Mudd (1959)
Non-promissory terms: terms which prevent the contract from operating (conditions
precedent), which cause the contract to terminate (conditions subsequent), and termination
clauses
Conditions precedent: Bell v. Lever Bros Ltd (1932)
Conditions subsequent: Graves v. Graves (2007)
Termination clauses: Staffordshire Area Health Authority v. South Staffordshire
Waterworks Co. (1978)
3. Express and implied terms (10 minutes)
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Terms implied by law (statute or judiciary decision)
Terms implied in fact
Terms implied on the basis of custom or trade usage
Luxor (Eastbourne) Ltd v. Cooper (1941)
Implied terms: custom or trade usage, implied terms and the tort of negligence, implied
terms and good faith, implied terms and the doctrines of mistake and frustration
4. Ancillary agreements or clauses (10 minutes)
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Collateral warranties, force majeure, entire agreement, non-reliance, exclusion clauses
Agreements subject to contract, letters of comfort, and letters of intent: William Lacey
(Hounslow) Ltd v. Davis (1957)
Choice-of-law clauses, mediation agreements, jurisdiction clauses, arbitration clauses
5. Interpretation or rectification (10 minutes)
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What is interpretation? Investors Compensation Scheme case (1998)
Chartbrook Ltd v. Persimmon Homes Ltd (2009), Charter Reinsurance Co. Ltd v. Fagan
(1997), Charter Reinsurance Co. Ltd v. Fagan (1997), Sigma case (2009)
6. Distinction between misrepresentation and a promissory term, criteria for determining whether
a pre-contractual assurance has effect as a contractual term, incorporation of terms, the parol
evidence rule, entire agreement clauses, non-reliance clauses (10 minutes)
7. Unfair terms (10 minutes)
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Contract Terms Act 1977 (UCTA)
R & B Customs Brokers Ltd v. UDT Ltd (1988)
8. International and European “soft law” codes – differences from English law (10 minutes)
9. Recapitulation (5 minutes)
10. Questions (10 minutes)