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Cover Page - Chitty of Contracts
Cover Page - Chitty of Contracts
Cover Page - Chitty of Contracts
CHITTY
ON
CONTRACTS
THIRTY-SECOND EDITION
VOLUME I
GENERAL PRINCIPLES
First Edition (1826) By Joseph Chitty, Junior
Second Edition (1834) ” ” ”
Third Edition (1841) By Thompson Chitty
Fourth Edition (1850) By His Hon. Judge J. A. Russell, Q.C.
Fifth Edition (1853) ” ” ”
Sixth Edition (1857) ” ” ”
Seventh Edition (1863) ” ” ”
Eighth Edition (1868) ” ” ”
Ninth Edition (1871) ” ” ”
Tenth Edition (1876) ” ” ”
Eleventh Edition (1881) ” ” ”
Twelfth Edition (1890) By J. M. Lely and Sir William Geary
Thirteenth Edition (1896) By J. M. Lely
Fourteenth Edition (1904) ” ”
Fifteenth Edition (1909) By W. Wyatt Paine
Sixteenth Edition (1912) ” ”
Seventeenth Edition (1921) ” ”
Eighteenth Edition (1930) By W. A. MacFarlane and G. W. Wrangham
Nineteenth Edition (1937) General Editor: Harold Potter
Twentieth Edition (1947) ” ” ”
Twenty-first Edition (1955) Under the General Editorship of John Burke and
Peter Allsop
Twenty-second Edition (1961) General Editor: John Morris
Twenty-third Edition (1968) General Editor: A. G. Guest
Second Impression (1972) ” ” ”
Twenty-fourth Edition (1977) ” ” ”
Second Impression (1979) ” ” ”
Third Impression (1980) ” ” ”
Twenty-fifth Edition (1983) ” ” ”
Twenty-sixth Edition (1989) ” ” ”
Second Impression (1990) ” ” ”
Third Impression (1991) ” ” ”
Twenty-seventh Edition (1994) ” ” ”
Second Impression (1995) ” ” ”
Third Impression (1997) ” ” ”
Fourth Impression (1998) ” ” ”
Twenty-eighth Edition (1999) General Editor: H. G. Beale
Second Impression (2001) ” ” ”
Twenty-ninth Edition (2004) ” ” ”
Thirtieth Edition (2008) ” ” ”
Thirty-first Edition (2012) ” ” ”
Thirty-second Edition (2015) ” ” ”
Published in 2015 by
Thomson Reuters (Professional) UK Limited
trading as Sweet & Maxwell, Friars House, 160 Blackfriars Road, London, SE1 8EZ
(Registered in England & Wales, Company No 1679046.
Registered Office and address for service:
2nd floor, 1 Mark Square, Leonard Street, London EC2A 4EG)
For further information on our products and services,
visit www.sweetandmaxwell.co.uk
Computerset by Wright & Round Ltd, Gloucester
Printed and bound in the UK by CPI Group (UK) Ltd, Croydon, CR0 4YY
©
2015 Thomson Reuters
(Professional) UK Limited
GENERAL EDITOR
H. G. BEALE, Q.C. (Hon.), B.A., F.B.A.
Honorary Bencher of Lincoln’s Inn; Professor of Law,
University of Warwick; Senior Research Fellow of Harris Manchester College
and Visiting Professor in the University of Oxford
EDITORS
A. S. BURROWS, Q.C. (Hon.), D.C.L., LL.M., M.A., F.B.A.
of the Middle Temple, Honorary Bencher; Fellow of All Souls College and
Professor of the Law of England, University of Oxford
R. J. A. HOOLEY, M.A.
of the Middle Temple, Barrister; Fellow of Fitzwilliam College and
University Lecturer, University of Cambridge
[v]
L. MERRETT, M.A., Ph.D. (Cantab.)
of Gray's Inn, Barrister; Fellow of Trinity College and
University Lecturer, University of Cambridge
[vi]
NOTE TO READERS
Chitty on Contracts, 32nd edition, consists of two volumes. Volume I sets out the
General Principles and Volume II deals with Specific Contracts. Customers may
choose to purchase either Volume I alone or both Volumes together.
Please note that Volume I contains Chapters 1 to 30 and an Index which relates
to Volume I only.
Volume II contains Chapters 31 to 45 and an Index which relates to both
Volumes I and II.
[vii]
No natural forests were destroyed to make this product;
only farmed timber was used and replanted
All rights reserved. Crown copyright material is reproduced with the permission of the
Controller of HMSO and the Queen’s Printer for Scotland.
Thomson Reuters and the Thomson Reuters Logo are trademarks of Thomson Reuters.
Sweet & Maxwell ® is a registered trademark of Thomson Reuters (Legal) Limited.
[viii]
PREFACE
This 32nd edition of Chitty on Contracts looks rather different to the last few editions.
This is mainly due to one of the most significant pieces of legislation to affect contract law
in many years, the Consumer Rights Act 2015, which comes into force on October 1, 2015
and applies to contracts made on or after that day. In addition, some chapters have new
sections or have been rearranged; and almost all chapters deal with significant develop-
ments in other legislation or case law since the 31st edition in 2012. Lastly, there have
been changes and re-allocations of responsibilities within the Editorial Team.
[ix]
PREFACE
Volume I
Chapter 1, Introductory:
Sims v Dacorum BC, Smith v Carillion and Ashworth v The Royal National Theatre
(Human Rights Act 1998 and contracts); Yam Seng Pte Ltd v International Trade Corp Ltd
and Mid Essex Hospital Services NHS Trust v Compass Group UK and Ireland Ltd (t/a
Medirest) (good faith)
Chapter 4, Consideration:
Virulite LLC v Virulite Distribution Ltd (promissory estoppel)
Chapter 5, Form
Golden Ocean Group Ltd v Salgaocar Mining Industries Pvt Ltd (electronic signature)
Chapter 7, Misrepresentation:
Cramaso LLP v Viscount Reidhaven’s Trustees (continuing representation)
Chapter 11, The Crown, Public Authorities and the European Union:
Shebelle Enterprises Ltd v Hampstead Garden Suburb Trust Ltd and Charles Terence
Estates Ltd v Cornwall Council
[x]
PREFACE
Volume II
[xi]
PREFACE
2013 (amending the RAO) and Financial Services Act 2012 (Consumer Credit) Order
2013 (and the FCA Handbook CONC); Scotland v British Credit Trust Ltd, Link Financial
Ltd v North Wilson, and Plevin v Paragon Personal Finance Ltd (mis-selling, unfair
relationships); Durkin v DSG Retail Ltd (connected lender)
Professor Robin Morse and John Uff Q.C. have retired from the Editorial Team after many
years of invaluable work. I am most grateful to them for their contributions and their wise
counsel over the years. Professor Tony Guest Q.C., Professor Francis Reynolds Q.C. and
Professor Sir Guenter Treitel Q.C. have reduced the number of chapters with which they
deal; I am very glad and thankful that they have each felt able to continue to edit major
chapters—Guest still edits Arbitration (Vol.II), Reynolds edits Agency (Vol.II) and Treitel
does Consideration and Third Parties (Vol.I) and Gambling Contracts (Vol.II).
I am delighted that we have been able to recruit to the Editorial Team Professor Mindy
Chen-Wishart of Merton College Oxford (who takes on the chapters on Agreement and on
Specific Performance and Injunction), Dr Louise Merrett of Trinity College Cambridge
(Conflicts of Law and Sale of Goods), Dr Jeremias Prassl of Magdalen College, Oxford
(Employment, with Professor Mark Freedland) and Mr William Webb (Construction
Contracts, with Vince Moran Q.C.).
Peter MacDonald Eggers Q.C. has kindly taken over responsibility for the chapter on
Political Immunity and Incapacity (Vol.I) and Professor Ewan McKendrick for the
chapters on Express Terms and Implied Terms (also Vol.I).
[xii]
PREFACE
I am very grateful to all my colleagues on the Editorial Team for the very hard work they
put into preparing the new edition, for the very high quality of their contributions and for
the good order and timeliness in which they have submitted the material.
As usual, the publishers have taken responsibility for the tables and the index. For this
edition, as well as doing the sub-editing they took on checking and updating many of the
cross-references—a major task that has been an enormous help to the Editorial Team. The
publishers have also adapted the text for the digital edition that is available to subscribers
to Westlaw. The digital version is very widely used, which is a tribute to the publishers’
skill in making it easy to use. I am very grateful to all the Sweet & Maxwell and Thomson
Reuters staff who have helped with the 32nd edition, and in particular to John Pacione, the
Commissioning Editor, and Claire Patient, the Senior Editor for this book. They have all
been marvelous to work with.
Dates
We have aimed to bring the work up-to-date with developments that occurred before July
31, 2015; but we have anticipated the coming into force of some legislation, in particular
the Consumer Rights Act 2015 that enters into force on October 1, 2015.
Hugh Beale
Warwick, September 14, 2015
[xiii]
TABLE OF CONTENTS
VOLUME I
Page
Preface ix
Table of Statutes xxiii
Table of Statutory Instruments lv
Table of European Legislation lxv
Table of International Statutory Material lxxv
Table of Cases lxxix
Table of European Cases cdlxxix
PART ONE
INTRODUCTION
PARA.
1. INTRODUCTORY S. Whittaker 1–001
1. Sources of English contract law 1–001
2. Definitions of contract 1–014
3. Fundamental principles of contract law 1–025
4. The Human Rights Act 1998 and contracts 1–057
5. Classification of contracts 1–095
6. Contracts contained in deeds 1–113
7. The relationship between contract and tort 1–145
8. Contract and other legal categories 1–219
PART TWO
FORMATION OF CONTRACT
2. THE AGREEMENT M. Chen-Wishart 2–001
1. Preliminary 2–001
2. The offer 2–003
3. The acceptance 2–026
4. Termination of the offer 2–092
5. Special cases 2–117
6. Incomplete agreement 2–119
7. Certainty of terms 2–147
[xv]
TABLE OF CONTENTS
[xvi]
TABLE OF CONTENTS
PART THREE
CAPACITY OF PARTIES
9. PERSONAL INCAPACITY S. Whittaker 9–001
1. In general 9–001
2. Minors 9–005
3. Persons lacking mental capacity 9–075
4. Drunken persons 9–105
PART FOUR
[xvii]
TABLE OF CONTENTS
PART FIVE
PART SIX
[xviii]
TABLE OF CONTENTS
PART SEVEN
PERFORMANCE AND DISCHARGE
21. PERFORMANCE E. G. McKendrick 21–001
1. In general 21–001
2. Time of performance 21–011
3. Partial performance of an entire obligation 21–028
4. Payment 21–040
5. Tender 21–085
PART EIGHT
REMEDIES FOR BREACH OF CONTRACT
26. DAMAGES H. G. Beale 26–001
1. The nature of damages for breach of contract 26–001
2. Compensable heads of loss 26–019
[xix]
TABLE OF CONTENTS
PART NINE
RESTITUTION
[xx]
TABLE OF CONTENTS
PART TEN
CONFLICT OF LAWS
30. CONFLICT OF LAWS L. Merrett 30–001
1. Preliminary considerations 30–001
2. Common law: the doctrine of the proper law of a contract 30–005
3. The Rome Convention 30–017
4. The Rome I Regulation 30–129
5. Scope of the applicable law 30–304
Page
Index 2437
VOLUME II
31. AGENCY
32. ARBITRATION
33. BAILMENT
34. BILLS OF EXCHANGE AND BANKING
35. CARRIAGE BY AIR
36. CARRIAGE BY LAND
37. CONSTRUCTION CONTRACTS
38. CONSUMER CONTRACTS
39. CREDIT AND SECURITY
40. EMPLOYMENT
41. GAMBLING CONTRACTS
42. INSURANCE
43. RESTRICTIVE AGREEMENTS AND COMPETITION
44. SALE OF GOODS
45. SURETYSHIP
Please note that Volume I is available for sale separately from Volume II, so you
will only have access to the above contents of Volume II if you have purchased
both Volumes.
[xxi]
THE COMMON LAW LIBRARY
CHITTY
ON
CONTRACTS
THIRTY-SECOND EDITION
VOLUME II
SPECIFIC CONTRACTS
First Edition (1826) By Joseph Chitty, Junior
Second Edition (1834) ” ” ”
Third Edition (1841) By Thompson Chitty
Fourth Edition (1850) By His Hon. Judge J. A. Russell, Q.C.
Fifth Edition (1853) ” ” ”
Sixth Edition (1857) ” ” ”
Seventh Edition (1863) ” ” ”
Eighth Edition (1868) ” ” ”
Ninth Edition (1871) ” ” ”
Tenth Edition (1876) ” ” ”
Eleventh Edition (1881) ” ” ”
Twelfth Edition (1890) By J. M. Lely and Sir William Geary
Thirteenth Edition (1896) By J. M. Lely
Fourteenth Edition (1904) ” ”
Fifteenth Edition (1909) By W. Wyatt Paine
Sixteenth Edition (1912) ” ”
Seventeenth Edition (1921) ” ”
Eighteenth Edition (1930) By W. A. MacFarlane and G. W. Wrangham
Nineteenth Edition (1937) General Editor: Harold Potter
Twentieth Edition (1947) ” ” ”
Twenty-first Edition (1955) Under the General Editorship of John Burke and
Peter Allsop
Twenty-second Edition (1961) General Editor: John Morris
Twenty-third Edition (1968) General Editor: A. G. Guest
Second Impression (1972) ” ” ”
Twenty-fourth Edition (1977) ” ” ”
Second Impression (1979) ” ” ”
Third Impression (1980) ” ” ”
Twenty-fifth Edition (1983) ” ” ”
Twenty-sixth Edition (1989) ” ” ”
Second Impression (1990) ” ” ”
Third Impression (1991) ” ” ”
Twenty-seventh Edition (1994) ” ” ”
Second Impression (1995) ” ” ”
Third Impression (1997) ” ” ”
Fourth Impression (1998) ” ” ”
Twenty-eighth Edition (1999) General Editor: H. G. Beale
Second Impression (2001) ” ” ”
Twenty-ninth Edition (2004) ” ” ”
Thirtieth Edition (2008) ” ” ”
Thirty-first Edition (2012) ” ” ”
Thirty-second Edition (2015) ” ” ”
Published in 2015 by
Thomson Reuters (Professional) UK Limited
trading as Sweet & Maxwell, Friars House, 160 Blackfriars Road, London, SE1 8EZ
(Registered in England & Wales, Company No 1679046.
Registered Office and address for service:
2nd floor, 1 Mark Square, Leonard Street, London EC2A 4EG)
For further information on our products and services,
visit www.sweetandmaxwell.co.uk
Computerset by Wright & Round Ltd, Gloucester
Printed and bound in the UK by CPI Group (UK) Ltd, Croydon, CR0 4YY
©
2015 Thomson Reuters
(Professional) UK Limited
GENERAL EDITOR
H. G. BEALE, Q.C. (Hon.), B.A., F.B.A.
Honorary Bencher of Lincoln’s Inn; Professor of Law,
University of Warwick; Senior Research Fellow of Harris Manchester College
and Visiting Professor in the University of Oxford
EDITORS
A. S. BURROWS, Q.C. (Hon.), D.C.L., LL.M., M.A., F.B.A.
of the Middle Temple, Honorary Bencher; Fellow of All Souls College and
Professor of the Law of England, University of Oxford
R. J. A. HOOLEY, M.A.
of the Middle Temple, Barrister; Fellow of Fitzwilliam College and
University Lecturer, University of Cambridge
[v]
L. MERRETT, M.A., Ph.D. (Cantab.)
of Gray's Inn, Barrister; Fellow of Trinity College and
University Lecturer, University of Cambridge
[vi]
NOTE TO READERS
[vii]
No natural forests were destroyed to make this product;
only farmed timber was used and replanted
All rights reserved. Crown copyright material is reproduced with the permission of the
Controller of HMSO and the Queen’s Printer for Scotland.
Thomson Reuters and the Thomson Reuters Logo are trademarks of Thomson Reuters.
Sweet & Maxwell ® is a registered trademark of Thomson Reuters (Legal) Limited.
TABLE OF CONTENTS
VOLUME I
PART ONE
INTRODUCTION
1. INTRODUCTORY
PART TWO
FORMATION OF CONTRACT
2. THE AGREEMENT
3. MISTAKE AS TO THE TERMS OR AS TO IDENTITY
4. CONSIDERATION
5. FORM
6. COMMON MISTAKE
7. MISREPRESENTATION
8. DURESS AND UNDUE INFLUENCE
PART THREE
CAPACITY OF PARTIES
9. PERSONAL INCAPACITY
10. CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
11. THE CROWN, PUBLIC AUTHORITIES AND THE EUROPEAN UNION
12. POLITICAL IMMUNITY AND INCAPACITY
PART FOUR
THE TERMS OF CONTRACT
13. EXPRESS TERMS
[ix]
TABLE OF CONTENTS
PART FIVE
ILLEGALITY AND PUBLIC POLICY
16. ILLEGALITY AND PUBLIC POLICY
PART SIX
JOINT OBLIGATIONS, THIRD PARTIES AND ASSIGNMENT
17. JOINT OBLIGATIONS
18. THIRD PARTIES
19. ASSIGNMENT
20. DEATH AND BANKRUPTCY
PART SEVEN
PERFORMANCE AND DISCHARGE
21. PERFORMANCE
22. DISCHARGE BY AGREEMENT
23. DISCHARGE BY FRUSTRATION
24. DISCHARGE BY BREACH
25. OTHER MODES OF DISCHARGE
PART EIGHT
REMEDIES FOR BREACH OF CONTRACT
26. DAMAGES
27. SPECIFIC PERFORMANCE AND INJUNCTION
28. LIMITATION OF ACTIONS
PART NINE
RESTITUTION
29. RESTITUTION
[x]
TABLE OF CONTENTS
PART TEN
CONFLICT OF LAWS
30. CONFLICT OF LAWS
VOLUME II
Page
Table of Statutes xv
Table of Statutory Instruments lxxxi
Table of European Legislation cxv
Table of International Statutory Material cxxiii
Table of Cases cxxix
Table of European Cases cdlvii
PARA.
31. AGENCY F. M. B. Reynolds 31–001
1. Agency in general 31–001
2. Examples of types of agent 31–009
3. Commercial agents 31–017
4. Creation of agency 31–021
5. Authority 31–043
6. Principal’s relations with third parties 31–054
7. Agent’s relations with third parties 31–083
8. Obligations of principal and agent inter se 31–112
9. Termination of authority 31–166
[xi]
TABLE OF CONTENTS
[xii]
TABLE OF CONTENTS
[xiii]
TABLE OF CONTENTS
3. Formalities 45–042
4. Construction of the contract 45–062
5. Discharge of debtor 45–083
6. Discharge of surety 45–085
7. Surety’s right to indemnity and contribution 45–125
8. Legislative protection of sureties 45–146
Page
Index 2269
[xiv]
THE COMMON LAW LIBRARY
CHITTY
ON
CONTRACTS
First Supplement
to the
Thirty-Second Edition
A CIP catalogue record for this book is available from the British Library
All rights reserved. Crown copyright material is reproduced with the permission
of the Controller of HMSO and the Queen’s Printer for Scotland.
©
2016 Thomson Reuters (Professional) UK Limited
GENERAL EDITOR
H. G. BEALE, Q.C. (Hon.), B.A., F.B.A.
Honorary Bencher of Lincoln’s Inn; Professor of Law,
University of Warwick; Senior Research Fellow of Harris Manchester College
and Visiting Professor in the University of Oxford
EDITORS
A. S. BURROWS, Q.C. (Hon.), D.C.L., LL.M., M.A., F.B.A.
of the Middle Temple, Honorary Bencher; Fellow of All Souls College and
Professor of the Law of England, University of Oxford
[iii]
VINCENT MORAN, Q.C., M.A. (Cantab.)
Bencher of Gray’s Inn, Barrister
[iv]
HOW TO USE THIS SUPPLEMENT
This is the First Supplement to the Thirty-Second Edition of Chitty on Contracts,
and has been compiled according to the structure of the two main work vol-
umes.
At the beginning of each chapter of this Supplement the mini table of contents
from the main volume has been included. Where a heading in this table of
contents has been marked with a square pointer, this indicates that there is
relevant information in the Supplement to which the reader should refer.
It should be noted that for this Supplement there is no material for chapters 10
and 17.
This Supplement has been prepared on the premise that, despite the referendum
result in favour of ‘‘Brexit’’, the UK remains a member of the EU and that the
status of EU law in UK law remains unchanged. See below, paras
1–013A—1–013E.
[v]
TABLE OF CONTENTS
PAGE
Table of Statutes ix
Table of Statutory Instruments xiii
Table of European Legislation xvii
Table of International Statutory Material xxi
Table of Cases xxiii
Table of European Cases xlix
VOLUME I
PART ONE—INTRODUCTION
PARA.
1. Introductory S. Whittaker 1–001
PART TWO—FORMATION OF CONTRACT
[vii]
TABLE OF CONTENTS
PART NINE—RESTITUTION
VOLUME II
31. Agency F. M. B. Reynolds 31–001
32. Arbitration P. J. S. MacDonald Eggers 32–001
33. Bailment E. G. McKendrick 33–001
34. Bills of Exchange and Banking R. J. A. Hooley 34–001
35. Carriage by Air D. McClean 35–001
36. Carriage by Land P. J. S. MacDonald Eggers 36–001
37. Construction Contracts V. Moran and W. Webb 37–001
38. Consumer Contracts S. Whittaker 38–001
39. Credit and Security E. Lomnicka 39–001
40. Employment M. R. Freedland and J. Prassl 40–001
41. Gaming Contracts G. H. Treitel 41–001
42. Insurance P. J. S. MacDonald Eggers 42–001
43. Restrictive Agreements and Competition R. Whish 43–001
44. Sale of Goods L. Merrett 44–001
45. Suretyship S. Whittaker 45–001
[viii]