Table Of Content

UNIVERSITY OF TORONTO FACULTY OF LAW —in a> <^= —=<n QC^= =io Contracts A =co —o _l- --■' V er \ z- 2010-2011 1 <••• PC— — o^= CQ= ^co Volume 1 Professor Betty M Ho B AUG 1 7 2010 FACULTY OF LAW UNIVERSITY OF TORONTO Contracts A 2010-2011 Volume 1 Professor Betty M Ho Digitized by the Internet Archive in 2018 with funding from University of Toronto https://archive.org/details/contracts01hobe Table of Contents I. The formation of a contract A. The mechanics of agreement 1. Offer (a) Contents of message Denton v. The Great Northern Railway Company. 1 Grainger & Son v. Gough. 3 Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd. 4 Fisher v. Bell. 5 Lefkowitz v. Great Minneapolis Surplus Store, Inc. 7 Harvey Facey. 10 V. Johnston Brothers v. Rogers Brothers. 12 (b) Revo cab ility Dickinson Dodds. 15 V. (c) Validity period Shatford v. British Columbia Wine Growers Ltd. 16 2. Acceptance (a) Contents of message Hyde Wrench 17 V. . Bellamy v. Debenham. 18 Finn v. Hoffman and Co. 20 (b) Timeliness Manchester Diocesan Council for Education v. Commercial & General Investments Ltd. 21 (c) Communication Re Universal Banking Corporation, Gunn’s Case. 25 Felthouse v. Bindley. 26 Lucy Mouflet 27 V. . (d) Risk of loss or error in communication 1 \ Household Fire Insurance Co. v. Grant. 29 Byrne & Co. v. Leon Van Tienhoven & Co. 34 Adams v. Lindsell. 36 Henthorn v. Fraser. 37 Holwell Securities Ltd. v. Hughes. 38 Entores Ld. V. Miles East Corporation. 40 3. Battle of forms Butler Machine Tool Co. Ltd. v. Ex-Cell-O Corporation (England) Ltd. 43 B. Certainty and completeness of agreement 1. Completeness May and Butcher Ltd. v. The King. 46 Hillas & Co. Ltd. v. Arcos Ltd. 49 Foley V. Classique Coaches Ltd. 53 2. Certainty Scammell (G.) & Nephew Ltd. v. Ouston. 55 C. Intention 1. Domestic and social arrangements Balfour Balfour. 58 V. Merritt v. Merritt. 60 Jones Padavatton. 62 V. 2. Commercial dealings Rose and Frank Co. v. J. R. Crompton and Brothers Ltd. 69 D. The objective theory Smith V. Hughes. 71 Thake v. Maurice. 71 The Hannah Blumenthal. 78 E. Formalization 11 Rossiter v. Miller. 79 Branca v. Cabarro. 84 Calvan Consolidated Oil & Gas Co. v. Manning. 86 Green v. Ainsmore Consolidated Mines Ltd. 90 F. Consideration 1. The requirement Goldings ’ Case. 95 Murrie v. Misa. 95 Pollock, Principles of Contract. 95 2. Basic concepts (a) Benefit or detriment Hamer v. Sidway. 95 (b) Value Thomas v. Thomas. 97 Schnell v. Nell. 99 (c) The ‘moving’ of consideration Dunlop Pneumatic Tyre Co. Ltd. v. New Garage and Motor Co. Ltd. 102 3. Promises as consideration Harrison Cage 107 V. . 4. Pre-existing duty (a) Pre-existing contractual duty to promisor Harris Watson 107 V. . Stilkv. Myrick. 108 Williams v. Roffey Bros and Nicholls (Contractors) Ltd. 109 (b) Pre-existing contractual duty to third party Shadwell v. Shadwell. 114 Pao On Lau Yiu Long 115 V. . (c) Pre-existing public duty Glasbrook Brothers Ltd. v. Glamorgan County Council. 116 111 \ 5. Past consideration Roscorlav. Thomas. 123 Pao On Lau Yiu Long 125 V. . Webb McGowin. 125 V. 6. Illusory consideration Wood Lacy. 129 V. Tobias v. Dick & T Eaton Co. 131 7. Moral obligation as consideration G. The Seal 1. The significance of a seal Friedmann Equity Developments Inc. v. Final Note Ltd. 133 2. The mechanics of affixing a seal First National Securities Ltd. v. Jones. 139 Royal Bank of Canada v. Kiska. 141 H. Unilateral contracts Carlill Carbolic Smoke Ball Co. 146 V. Daulia Ltd. v. Four Millbank Nominees Ltd. 149 Williams Carwardine. 150 V. The Crown Clarke. 151 V. I. Tenders 1. Obligations under the main contract The Great Northern Railway Co. Witham. 154 V. Re The Gloucester Municipal Election Petition. 156 2. The tendering process M.J.B. Enterprises Ltd. v. Defence Construction (1951) Ltd. 157 IV 3. Withdrawal of sub-bids Baird (James) Co. v. Gimbel Bros. Inc. 165 Drennan v. Star Paving Co. 167 J. Bargaining in good faith Waif or d v. Miles. 171 Empress Towers Ltd. v. The Bank of Nova Scotia. 173 Martel Building Ltd. v. Canada. 176 II. VITIATING ELEMENTS A. Misrepresentation 1. What constitutes a misrepresentation (a) An ‘untruth’ Aaron’s Reefs Ltd. v. Twiss. 184 Tapp Lee. 185 V. (b) Distinguishing between representations and promises Schawel v. Reade. 187 Dick Bentley Productions Ltd. v. Harold Smith (Motors) Ltd. 187 Oscar Chess Ltd. Williams 189 V. . 2. Innocent misrepresentations Heilbut, Symons & Co. v. Buckleton. 191 Leaf International Galleries 194 V. . 3. Negligent misrepresentations Hercules Managements Ltd. v. Ernst & Young. 196 Esso Petroleum Co. Ltd. v. Mardon. 203 4. Fraudulent misrepresentations East Maurer 208 V. . B. Mistake \ V 1. Mistake of identity Boulton Jones. 212 V. Cundyv. Lindsay. 214 King’s Norton Metal Co. Ltd. v. Edridge, Merrett, and Co. Ltd. 217 Phillips Brooks Ltd. 218 V. Ingram v. Little. 221 Lewis Aver ay. 231 V. Shogun Finance Ltd. v. Hudson. 236 2. Mistake of assumption (a) Allocation of risk of mistake Barrow, Lane and Ballard, Ltd. v. Phillip Phillips and Co. Ltd. 252 Couturier Hastie. 253 V. McRae v. Commonwealth Disposals Commission. 255 Associated Japanese Banks (International) Ltd. v. Credit du Nord S.A. 260 (b) Information/judgment asymmetry Laidlaw Organ. 260 V. Sherwood v. Walker. 262 (c) Mistaken assumption as to quality of subject matter Bell Lever Brothers Ltd. 268 V. Scott Coulson. 282 V. Magee v. Pennine Insurance Co. Ltd. 284 Associated Japanese Bank (International) Ltd. v. Credit du Nord S.A... 287 (d) Mistake in equity Solle Butcher. 292 V. 3. Mistake of terms (a) Distinguishing mistakes of assumption and mistake of terms Smith Hughes. 294 V. (b) Different interpretations of terms Raffles Wichelhaus. 299 V. vi