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THE COMMON LAW LIBRARY

THE LAW OF CONTRACTS


VOLUME I
GENERAL PRINCIPLES
OTHER VOLUMES IN THE COMMON LAW LIBRARY

Clerk & Lindsell on Torts


Bullen & Leake & Jacob’s Precedents of Pleadings
Charlesworth & Percy on Negligence
Bowstead and Reynolds on Agency
Gatley on Libel and Slander
McGregor on Damages
Phipson on Evidence
Benjamin’s Sale of Goods
Jackson & Powell on Professional Liability
Goff & Jones, The Law of Unjust Enrichment
Arlidge, Eady & Smith on Contempt
THE COMMON LAW LIBRARY

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
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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

MINDY CHEN-WISHART, BA (Hons), LL.B., LL.M. (Otago), MA (Oxon)


Fellow of Merton College and Professor of the Law of Contract,
University of Oxford

M. R. FREEDLAND, LL.B., M.A., D.Phil., F.B.A.


Bencher of Gray’s Inn; Emeritus Research Fellow of St John’s College and
Emeritus Professor of Employment Law, University of Oxford

A. G. GUEST, C.B.E., Q.C., M.A., F.B.A.


Bencher of Gray’s Inn; formerly Professor of English Law, University of London;
Fellow of the Chartered Institute of Arbitrators

R. J. A. HOOLEY, M.A.
of the Middle Temple, Barrister; Fellow of Fitzwilliam College and
University Lecturer, University of Cambridge

EVA LOMNICKA, M.A. (Cantab.), LL.B. (Cantab.)


Bencher of the Middle Temple; Professor of Law, King’s College London

DAVID McCLEAN, C.B.E., Q.C. (Hon.), D.C.L., F.B.A.


Bencher of Gray’s Inn; Emeritus Professor of Law, University of Sheffield

P. J. S. MACDONALD EGGERS, Q.C., LL.B. (Syd.), LL.M. (Cantab.)


of the Middle Temple, Barrister; Visiting Professor, University College London

E. G. McKENDRICK, Q.C., LL.B., B.C.L., M.A.


Bencher of Gray’s Inn; Fellow of Lady Margaret Hall, Registrar and Professor
of English Private Law, University of Oxford

[v]
L. MERRETT, M.A., Ph.D. (Cantab.)
of Gray's Inn, Barrister; Fellow of Trinity College and
University Lecturer, University of Cambridge

P. P. MITCHELL, B.A., D.Phil. (Oxon)


Professor of Laws, University College London

VINCENT MORAN, Q.C., M.A. (Cantab.)


of Gray’s Inn, Barrister

JEREMIAS F.B.B. PRASSL, M.A., D.Phil (Oxon), LLM. (Harvard)


Fellow of Magdalen College and Associate Professor of Law in the
Univerity of Oxford

D. D. PRENTICE, LL.B., J.D., M.A.


of Lincoln’s Inn, Barrister; Emeritus Fellow of Pembroke College and formerly
Allen & Overy Professor of Corporate Law, University of Oxford

F. M. B. REYNOLDS, Q.C. (Hon.), D.C.L., F.B.A.


Honorary Bencher of the Inner Temple; Emeritus Fellow of Worcester College
and Professor of Law Emeritus, University of Oxford

SIR GUENTER TREITEL, Q.C., D.C.L., F.B.A.


Honorary Bencher of Gray’s Inn; Formerly Vinerian Professor
of English Law, University of Oxford

G. J. VIRGO, M.A. (Cantab.), B.C.L. (Oxon)


Bencher of Lincoln’s Inn; Fellow of Downing College, Pro-Vice-Chancellor for
Education and Professor of English Private Law, University of Cambridge

WILLIAM WEBB, B.A. (Cantab), LL.M., B.C.L. (Oxon)


of Lincoln’s Inn, Barrister

R. P. WHISH, Q.C. (Hon.), B.A., B.C.L. (Oxon)


Solicitor of the Supreme Court of Judicature; Professor of Law,
King’s College London

SIMON WHITTAKER, D.Phil., D.C.L. (Oxon)


of Lincoln’s Inn, Barrister; Fellow of St John’s College and Professor of
European Comparative Law, University of Oxford

[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;
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A CIP catalogue record for


this book is available
from the British Library

ISBN Volume I 9780414050679

All rights reserved. Crown copyright material is reproduced with the permission of the
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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.

The Consumer Rights Act 2015


Part 1 of the Consumer Rights Act 2015 not only replaces many sections of the Sales of
Goods Act 1979, Sale of Goods (Implied Terms) Act 1973 and the Supply of Goods and
Services Act 1982 so far as they affect consumer contracts but also provides new rights
and remedies for consumers who have purchased digital content (Chapter 3 of the Act)
and new remedies for contracts for services (Chapter 4). Part 2 replaces the Unfair Terms
in Consumer Contracts Regulations 1999 and also the Unfair Contract Terms Act 1977 so
far as the latter applies to consumer contracts. (Some of the 1977 Act’s provisions that
render terms excluding or restricting liability to consumers of no effect are replicated in
Part 1 of the Act.) Though significant pieces of legislation affecting consumers remain
separate (such as the Consumer Credit Act 1974, the Consumer Insurance (Disclosure and
Representations) Act 2012, the Consumer Protection from Unfair Trading Regulations
2008 and the Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013), the result of the 2015 Act is that for the first time English law has a
partial ‘‘code’’ of consumer law. So it has been decided to bring together most of the
material, excluding consumer credit and consumer insurance but including unfair terms
(previously in Vol.I), into a single new chapter on Consumer Contracts in Vol.II (Chapter
38). Professor Simon Whittaker kindly took on the Herculean task of producing the new
chapter (which has to deal also with the law applicable to contracts made before October
1, 2015) as well as making the necessary adjustments to the chapter on Exemption Clauses
in Vol.I (Chapter 15). Many other chapters of the book also contain references to the
Consumer Rights Act 2015; for the most part, they refer to the discussion in the new
chapter in Vol.II.

Other new sections and chapters


Chapter 2 (The Agreement) contains two new sections, one on electronic contract
formation and the other on liability when negotiations do not produce a contract. The
material on mistakes as to the terms and as to identity, much of which seems to follow
from the rules of contract formation, has been moved to a new Chapter 3, leaving Chapter
6 to cover just Common Mistake.

Other major new developments


Other major new developments since the 31st edition in 2012 include:

[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 3, Mistake as to the Terms or as to Identity:


Daventry DC v Daventry and District Housing Ltd (rectification)

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 9, Personal Incapacity:


Dunhill v Burgin (knowledge of other party’s incapacity)

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

Chapter 13, Express Terms:


Lloyds TSB Foundation for Scotland v Lloyds Banking Group Plc (interpretation)

Chapter 15, Exemption Clauses:


Trustees of Ampleforth Abbey Trust v Turner and Townsend (reasonableness under 1977
Act)

Chapter 16, Illegality and Public Policy:


Allen v Hounga, Les Laboratoires Servier v Apotex Inc and Bilta (UK) Ltd v Nazir (ex
turpi causa); Patel v Mirza (locus poenitentiae)

Chapter 18, Third Parties:


Hurley Palmer Flatt Ltd v Barclays Bank Plc and Starlight Shipping Co v Allianz
Versicherungs AG (The Alexandros T) (Contracts (Rights of Third Parties) Act 1999)

Chapter 24, Discharge by Breach:


Société Générale (London Branch) v Geys (effect of breach of employment contract);
Flame SA v Glory Wealth Shipping PTE Ltd (anticipatory breach); Valilas v Januzaj and
Telford Homes (Creekside) Ltd v Ampurius Nu Homes Holdings Ltd (intermediate
terms)

Chapter 26, Damages:


Late Payment of Commercial Debts Regulations 2013 (amended 2015); Arroyo v Equion
Energia Ltd (Wrotham Park damages); Grange v Quinn (unprofitable activity); Isabella

[x]
PREFACE

Shipowner SA v Shagang Shipping Co Ltd (The Aquafaith) (legitmate interest in continu-


ing performance); Fulton Shipping Inc of Panama v Globalia Business Travel SAU
(subsequent transactions); Bunge SA v Nidera BV (events that have occurred by time of
trial); Makdessi v Cavendish Square Holdings BV and Parkingeye Ltd v Beavis (penalty
clauses)

Chapter 28, Limitation of Actions:


Aspects Contracts (Asbestos) Ltd v Higgins Construction Plc

Chapter 29, Restitution:


Benedetti v Sawiris (benefit); Menelaou v Bank of Cyprus Plc (subrogation: enrichment);
Jeremy D Stone Consultants Ltd v National Westminster Bank Plc (whether bank
enriched); Harrison v Madejski and Coys of Kensington (subjective valuation); Investment
Trust Companies v Commissioners for HMRC (enrichment); TFL Management Ltd v
Lloyds Bank Plc (incidental benefits), Pitt v Holt (voluntary disposition, mistake); Barnes
v Eastenders Cash and Carry Plc (failure of basis); FHR European Ventures LLP v Cedar
Capital Partners LLC (bribe, tracing)

Chapter 30, Conflict of Laws:


Pammer v Reederei Schlüter GmbH & Co KG (C-585/08) and Alpenhof v Heller
(C-144/09) (Rome I Regulation art.6)

Volume II

Chapter 31, Agency:


Fern Computer Consultancy Ltd v Intergraph Cadworx & Analysis Solutions Inc (com-
mercial agents); FHR European Ventures LLP v Cedar Capital Partners LLC (bribery)

Chapter 32, Arbitration:


AES Ust-Kamenogorsk Hydropower Plant LLP v Ust-Kamenogorsk Hydropower Plant
JSC (the Brussels I Regulation (recast) and its effect on National Navigation Co v Endesa
Generacion SA (The Wadi Sudr))

Chapter 34, Bills of Exchange and Banking


Financial Services Act 2012; Financial Services and Markets Act 2000 (Exemption)
(Amendment) Order 2015; Bills of Exchange Act 1882 new Part 4A, introduced by Small
Business, Enterprise and Employment Act 2015; Tidal Energy Ltd v Bank of Scotland Plc
(CHAPS); Alternative Power Solution Ltd v Central Electricity Board and Standard
Chartered Bank v Dorchester LNG (2) Ltd (banker’s commercial credits)

Chapter 35, Carriage by Air


Hook v British Airways Plc; Stott v Thomas Cook Tour Operators and Graham v Thomas
Cook Group UK Ltd (Montreal Convention); Dawson v Thomson Airways Ltd (Regulation
261/2004)

Chapter 37, Construction Contracts:


Greenwich Millennium Village Ltd v Essex Services Group (sub-contractors); Aspect
Contracts (Asbestos) Ltd v Higgins Construction Plc (adjudication)

Chapter 39, Credit and Security:


Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2015; Finan-
cial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order

[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)

Chapter 40, Employment:


Stringfellow Restaurants Ltd v Quashie and President of the Methodist Conference v
Preston (whether contract of employment); Bates van Winkelhof v Clyde & Co LLP
(partner); Attrill v Dresdner Kleinwort Ltd (bonus); Lock v British Gas Trading Ltd
(C-539/12) (holiday pay); Société Générale (London Branch) v Geys (termination)

Chapter 41, Gambling Contracts:


Ritz Hotel Casino Ltd v Al Daher (‘‘credit’’)

Chapter 42, Insurance:


Consumer Insurance (Disclosure and Representations) Act 2012 and Insurance Act 2015;
Bate v Aviva Insurance UK Ltd (non-disclosure); Versloot Dredging BV v HDI Gerling
Industrie Versicherung AG (fraudulent claims); Astrazeneca Insurance Co Ltd v XL
Insurance (Bermuda) Ltd (re-insurance)

Chapter 44, Sale of Goods:


Caterpillar (NI) Ltd (formerly FG Wilson (Engineering) Ltd) v John Holt & Co (Liver-
pool) Ltd (retention of title, action for price)

Chapter 45, Suretyship:


Wuhan Guoyu Logistics Group Co Ltd v Emporiki Bank of Greece SA (performance
guarantee); National Merchant Buying Society Ltd v Bellamy (continuing guarantee);
Aviva Insurance Ltd v Hackney Empire Ltd (variations); and Brusse v Jahani BV
(C-488/11) (unfair terms).

The Editorial Team

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

Some words of thanks

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

8. Conditional agreements 2–156


9. Contractual intention 2–167
10. Liability when negotiations do not produce a contract 2–200

3. MISTAKE AS TO THE TERMS OR AS TO IDENTITY H.G. Beale 3–001


1. Introduction to mistake 3–001
2. Mistakes as to terms or identity 3–013
3. Non est factum 3–049
4. Rectification of written agreements 3–057

4. CONSIDERATION G. H. Treitel 4–001


1. Introduction 4–001
2. Definitions 4–004
3. Adequacy of consideration 4–014
4. The concept of ‘‘valuable’’ consideration 4–022
5. Past consideration 4–026
6. Consideration must move from the promisee 4–037
7. Compromise and forbearance to sue 4–047
8. Existing duties as consideration 4–062
9. Discharge and variation of contractual duties 4–077
10. Part payment of a debt 4–117
11. Proprietary estoppel 4–139
12. Special cases 4–186

5. FORM S. Whittaker 5–001


1. In general 5–001
2. Contracts for the sale or other disposition of an interest in
land 5–010
6. COMMON MISTAKE H. G. Beale 6–001
1. Introduction to mistake 6–001
2. Introduction to common mistake 6–015
3. Different approaches before Bell v Lever Bros 6–017
4. Mistake at common law 6–026
5. Mistakes of law 6–052
6. No separate rule in equity 6–055
7. Mistake and construction 6–062

7. MISREPRESENTATION H. G. Beale 7–001


1. In general 7–001
2. What constitutes effective misrepresentation 7–006
3. Damages for misrepresentation 7–045
4. Rescission for misrepresentation 7–111
5. Exclusion of liability for misrepresentation 7–143
6. Contracts where duty of disclosure 7–155
8. DURESS AND UNDUE INFLUENCE H. G. Beale 8–001
1. Introduction 8–001
2. Duress 8–003
3. Undue influence 8–057

[xvi]
TABLE OF CONTENTS

4. Unconscionable bargains and inequality of bargaining power 8–130

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

10. CORPORATIONS AND UNINCORPORATED


ASSOCIATIONS D. D. Prentice 10–001
1. Corporations 10–001
2. Unincorporated associations 10–064

11. THE CROWN, PUBLIC AUTHORITIES AND THE


EUROPEAN UNION P. P. Mitchell 11–001
1. Introduction 11–001
2. Crown contracts 11–004
3. Public authorities 11–021
4. Tender process contracts 11–042
5. Estoppel 11–046
6. Public procurement 11–051

12. POLITICAL IMMUNITY AND INCAPACITY P. J. S. MacDonald Eggers 12–001


1. Foreign states, sovereigns, ambassadors and international
organisations 12–001
2. Alien enemies 12–024

PART FOUR

THE TERMS OF CONTRACT


13. EXPRESS TERMS E. G. McKendrick 13–001
1. Proof of terms 13–002
2. Classification of terms 13–019
3. Construction of terms 13–041
4. Admissibility of extrinsic evidence 13–098

14. IMPLIED TERMS E. G. McKendrick 14–001

15. EXEMPTION CLAUSES S. Whittaker 15–001


1. In general 15–001
2. Principles of construction 15–007

[xvii]
TABLE OF CONTENTS

3. Fundamental breach 15–023


4. Application of principles of construction to particular
contracts 15–028
5. Exemption clauses and third parties 15–042
6. Legislative control of exemption clauses 15–062
7. Common law qualifications 15–146
8. Force majeure clauses 15–152

PART FIVE

ILLEGALITY AND PUBLIC POLICY

16. ILLEGALITY AND PUBLIC POLICY D. D. Prentice 16–001


1. Introduction 16–001
2. The position at common law 16–004
3. Contracts unenforceable by statute 16–152
4. Enforcement of collateral and proprietary rights 16–174
5. Severance 16–211
6. Pleading and practice 16–221

PART SIX

JOINT OBLIGATIONS, THIRD PARTIES AND ASSIGNMENT

17. JOINT OBLIGATIONS A. S. Burrows 17–001

18. THIRD PARTIES G. H. Treitel 18–001


1. Introduction 18–001
2. The common law doctrine 18–003
3. Scope 18–023
4. Contracts for the benefit of third parties 18–045
5. Enforcement against third parties 18–139

19. ASSIGNMENT A. S. Burrows 19–001


1. Assignment 19–001
2. Vicarious performance 19–082
3. Assignment and negotiability 19–086
4. Assignment, novation and acknowledgment 19–087

20. DEATH AND BANKRUPTCY D. D. Prentice 20–001


1. Death 20–001
2. Bankruptcy 20–015

[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

22. DISCHARGE BY AGREEMENT E. G. McKendrick 22–001


1. In general 22–001
2. Release 22–003
3. Accord and satisfaction 22–012
4. Rescission 22–025
5. Variation 22–032
6. Waiver 22–040
7. Provision for discharge in the contract itself 22–048

23. DISCHARGE BY FRUSTRATION E. G. McKendrick 23–001


1. Introduction 23–001
2. The test for frustration 23–007
3. Illustrations of the doctrine 23–020
4. The limits of frustration 23–058
5. The legal consequences of frustration 23–070

24. DISCHARGE BY BREACH E. G. McKendrick 24–001


1. In general 24–001
2. Renunciation 24–018
3. Impossibility created by one party 24–029
4. Failure of performance 24–035
5. Consequences of discharge 24–049

25. OTHER MODES OF DISCHARGE E. G. McKendrick 25–001


1. Merger 25–001
2. Alteration or cancellation of a written instrument 25–020
3. Miscellaneous modes of discharge 25–030

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

3. Measures of compensation 26–034


4. Measures that are not strictly compensatory 26–043
5. Causation and contributory negligence 26–058
6. Mitigation of damage 26–079
7. Remoteness of damage and assumption of responsibility 26–107
8. Particular restrictions on recovery of damages 26–139
9. Illustrations of the assessment of damages 26–151
10. Liquidated damages, deposits and forfeiture of sums paid 26–178
11. The tax element in damages 26–217
12. Interest 26–227

27. SPECIFIC PERFORMANCE AND INJUNCTION M. Chen-Wishart 27–001


1. Introduction 27–001
2. The ‘‘adequacy’’ of damages 27–005
3. Contracts not specifically enforceable 27–023
4. Other grounds for refusing specific performance 27–034
5. Mutuality of remedy 27–051
6. Specific performance and third parties 27–054
7. Specific performance with compensation 27–059
8. Injunction 27–065
9. Damages and specific performance or injunction 27–083

28. LIMITATION OF ACTIONS A. S. Burrows 28–001


1. Periods of limitation 28–001
2. Accrual of the cause of action 28–031
3. Computation of the period 28–063
4. The running of time 28–065
5. Extension of the period 28–072
6. Abridgement of the period 28–113
7. Commencement of proceedings 28–117
8. The statute bars the remedy, not the right 28–127
9. Limitation in equity 28–135

PART NINE

RESTITUTION

29. RESTITUTION G. Virgo 29–001


1. Introduction 29–001
2. Unjust enrichment 29–017
3. Restitution for wrongs 29–145
4. Proprietary restitutionary claims 29–166
5. Defences 29–183

[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

THE LAW OF CONTRACTS


VOLUME II
SPECIFIC CONTRACTS
OTHER VOLUMES IN THE COMMON LAW LIBRARY

Clerk & Lindsell on Torts


Bullen & Leake & Jacob’s Precedents of Pleadings
Charlesworth & Percy on Negligence
Bowstead and Reynolds on Agency
Gatley on Libel and Slander
McGregor on Damages
Phipson on Evidence
Benjamin’s Sale of Goods
Jackson & Powell on Professional Liability
Goff & Jones, The Law of Unjust Enrichment
Arlidge, Eady & Smith on Contempt
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

MINDY CHEN-WISHART, BA (Hons), LL.B., LL.M. (Otago), MA (Oxon)


Fellow of Merton College and Professor of the Law of Contract,
University of Oxford

M. R. FREEDLAND, LL.B., M.A., D.Phil., F.B.A.


Bencher of Gray’s Inn; Emeritus Research Fellow of St John’s College and
Emeritus Professor of Employment Law, University of Oxford

A. G. GUEST, C.B.E., Q.C., M.A., F.B.A.


Bencher of Gray’s Inn; formerly Professor of English Law, University of London;
Fellow of the Chartered Institute of Arbitrators

R. J. A. HOOLEY, M.A.
of the Middle Temple, Barrister; Fellow of Fitzwilliam College and
University Lecturer, University of Cambridge

EVA LOMNICKA, M.A. (Cantab.), LL.B. (Cantab.)


Bencher of the Middle Temple; Professor of Law, King’s College London

DAVID McCLEAN, C.B.E., Q.C. (Hon.), D.C.L., F.B.A.


Bencher of Gray’s Inn; Emeritus Professor of Law, University of Sheffield

P. J. S. MACDONALD EGGERS, Q.C., LL.B. (Syd.), LL.M. (Cantab.)


of the Middle Temple, Barrister; Visiting Professor, University College London

E. G. McKENDRICK, Q.C., LL.B., B.C.L., M.A.


Bencher of Gray’s Inn; Fellow of Lady Margaret Hall, Registrar and Professor
of English Private Law, University of Oxford

[v]
L. MERRETT, M.A., Ph.D. (Cantab.)
of Gray's Inn, Barrister; Fellow of Trinity College and
University Lecturer, University of Cambridge

P. P. MITCHELL, B.A., D.Phil. (Oxon)


Professor of Laws, University College London

VINCENT MORAN, Q.C., M.A. (Cantab.)


of Gray’s Inn, Barrister

JEREMIAS F.B.B. PRASSL, M.A., D.Phil (Oxon), LLM. (Harvard)


Fellow of Magdalen College and Associate Professor of Law in the
Univerity of Oxford

D. D. PRENTICE, LL.B., J.D., M.A.


of Lincoln’s Inn, Barrister; Emeritus Fellow of Pembroke College and formerly
Allen & Overy Professor of Corporate Law, University of Oxford

F. M. B. REYNOLDS, Q.C. (Hon.), D.C.L., F.B.A.


Honorary Bencher of the Inner Temple; Emeritus Fellow of Worcester College
and Professor of Law Emeritus, University of Oxford

SIR GUENTER TREITEL, Q.C., D.C.L., F.B.A.


Honorary Bencher of Gray’s Inn; Formerly Vinerian Professor
of English Law, University of Oxford

G. J. VIRGO, M.A. (Cantab.), B.C.L. (Oxon)


Bencher of Lincoln’s Inn; Fellow of Downing College, Pro-Vice-Chancellor for
Education and Professor of English Private Law, University of Cambridge

WILLIAM WEBB, B.A. (Cantab), LL.M., B.C.L. (Oxon)


of Lincoln’s Inn, Barrister

R. P. WHISH, Q.C. (Hon.), B.A., B.C.L. (Oxon)


Solicitor of the Supreme Court of Judicature; Professor of Law,
King’s College London

SIMON WHITTAKER, D.Phil., D.C.L. (Oxon)


of Lincoln’s Inn, Barrister; Fellow of St John’s College and Professor of
European Comparative Law, University of Oxford

[vi]
NOTE TO READERS

Chitty on Contracts, 32nd edition, consists of two volumes. Volume I is the


General Principles text 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

A CIP catalogue record for


this book is available
from the British Library

ISBN Volume II 9780414050686

All rights reserved. Crown copyright material is reproduced with the permission of the
Controller of HMSO and the Queen’s Printer for Scotland.

No part of this publication may be reproduced or transmitted in any form or by any


means, or stored in any retrieval system of any nature without prior written permission,
except for permitted fair dealing under the Copyright, Designs and Patents Act 1988,
or in accordance with the terms of a licence issued by the Copyright Licensing Agency
in respect of photocopying and/or reprographic reproduction. Application for
permission for other use of copyright material including permission to reproduce
extracts in other published works shall be made to the publishers. Full
acknowledgment of author, publisher and source must be given.

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

14. IMPLIED TERMS


15. EXEMPTION CLAUSES

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

32. ARBITRATION A. G. Guest 32–001


1. Statutory regulation 32–002
2. The arbitration agreement 32–020
3. Stay of legal proceedings 32–051
4. Commencement of arbitral proceedings 32–075
5. The arbitral tribunal 32–083
6. Jurisdiction of the arbitral tribunal 32–101
7. The arbitral proceedings 32–106
8. Powers of the court 32–123
9. The award 32–131
10. Costs of the arbitration 32–148
11. Powers of the court in relation to the award 32–156
12. Miscellaneous 32–195

33. BAILMENT E. G. McKendrick 33–001


1. In general 33–001
2. Possession and related matters 33–009
3. Gratuitous bailment 33–032
4. Bailments for valuable consideration 33–044

[xi]
TABLE OF CONTENTS

34. BILLS OF EXCHANGE AND BANKING R. J. A. Hooley 34–001


1. Negotiable instruments 34–001
2. Aspects of banking law 34–214

35. CARRIAGE BY AIR D. McClean 35–001


1. Introduction 35–001
2. The International Conventions 35–002
3. Scope and application of the Conventions 35–008
4. European legislation 35–018
5. Liability of the carrier 35–022
6. Non-international carriage 32–074

36. CARRIAGE BY LAND P. J. S. MacDonald Eggers 36–001


1. Introduction 36–001
2. Internal carriage 36–007
3. International carriage 36–079

37. CONSTRUCTION CONTRACTS V. Moran and W. Webb 37–001


1. The nature of construction contracts 37–001
2. Formation of contract 37–043
3. Contract terms 37–063
4. Particular features 37–096
5. Payment 37–140
6. Sub-contracts 37–173
7. The contract administrator 37–185
8. Breach and non-performance 37–204
9. Remedies by enforcement 37–233
10. Disputes 37–253

38. CONSUMER CONTRACTS S. Whittaker 38–001


1. Introduction 38–001
2. The relationship of EU and UK consumer contract law 38–012
3. Definitions of consumer contracts 38–027
4. Information requirements and consumers’ rights of
cancellation 38–055
5. Unfair commercial practices and the consumer’s rights to
redress 38–145
6. The control of unfair contract terms 38–192
7. Contracts for the supply of goods, digital content or services 38–399

39. CREDIT AND SECURITY E. Lomnicka 39–001


1. The Regulation of consumer credit 39–001
2. Loans and interest 39–258
3. Hire-purchase agreements 39–306
4. Conditional sale agreements 39–439
5. Credit-sale agreements 39–464
6. Credit and other payment cards, and checks 39–472
7. Mortgages of personal property 39–519
8. Mortgages of land 39–529

[xii]
TABLE OF CONTENTS

40. EMPLOYMENT M. R. Freedland and J. Prassl 40–001


1. Introduction 40–001
2. The factors identifying a contract of employment 40–010
3. Formation of the contract 40–032
4. Collective agreements and statutory awards of terms 40–047
5. Rights and duties under and associated with a contract of
employment 40–058
6. Termination of the contract 40–157
7. Remedies, and rights incidental to the termination of
employment 40–194
8. Unfair and discriminatory dismissal 40–214
9. Redundancy payments and procedure 40–248
10. Statutory dispute resolution provisions 40–264
41. GAMBLING CONTRACTS G. H. Treitel 41–001
1. Introduction 41–001
2. Enforceability of gambling contracts 41–010

42. INSURANCE P. J. S. MacDonald Eggers 42–001


1. The nature of insurance 42–001
2. Insurable interest 42–005
3. The event insured against 42–018
4. Utmost good faith and fair presentation 42–030
5. The parties 42–063
6. The contract of insurance 42–068
7. The terms of the insurance contract 42–078
8. Assignment 42–089
9. Claims 42–092
10. The rights of the insurer upon payment 42–112
11. Specific types of insurance contract 42–118

43. RESTRICTIVE AGREEMENTS AND


COMPETITION R. Whish 43–001
1. Introduction 43–001
2. Competition rules under the TFEU 43–004
3. United Kingdom competition law 43–077

44. SALE OF GOODS L. Merrett 44–001


1. In general 44–001
2. Formation of the contract 44–020
3. Terms of the contract 44–054
4. Effects of the contract 44–130
5. Performance of the contract 44–234
6. Remedies of the seller 44–304
7. Remedies of the buyer 44–387
8. Consumer Protection Act 1987 44–449

45. SURETYSHIP S. Whittaker 45–001


1. In general 45–001
2. Formation of the contract 45–019

[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

Up-to-date to July 31, 2016


Published in 2016 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

No natural forests were destroyed to make this product;


only farmed timber was used and replanted

A CIP catalogue record for this book is available from the British Library

ISBN Main Work (full set) 9780414050679

ISBN Supplement 9780414057067

All rights reserved. Crown copyright material is reproduced with the permission
of the Controller of HMSO and the Queen’s Printer for Scotland.

No part of this publication may be reproduced or transmitted in any form or by


any means, or stored in any retrieval system of any nature without prior written
permission, except for permitted fair dealing under the Copyright, Designs and
Patents Act 1988, or in accordance with the terms of a licence issued by the
Copyright Licensing Agency in respect of photocopying and/or reprographic
reproduction. Application for permission for other use of copyright material
including permission to reproduce extracts in other published works shall be
made to the publishers. Full acknowledgment of author, publisher and source
must be given.

Thomson Reuters and the Thomson Reuters Logo are


trademarks of Thomson Reuters.
Sweet & Maxwell ® is a registered trademark of
Thomson Reuters (Legal) Limited.

©
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

MINDY CHEN-WISHART, BA (Hons), LL.B., LL.M. (Otago), MA (Oxon)


Fellow of Merton College and Professor of the Law of Contract,
University of Oxford

M. R. FREEDLAND, Q,C, (Hon.), LL.B., M.A., D.Phil., F.B.A.


Bencher of Gray’s Inn; Emeritus Research Fellow of St John’s College and
Emeritus Professor of Employment Law, University of Oxford

R. J. A. HOOLEY, M.A. (Cantab.)


of the Middle Temple, Barrister; Fellow of Fitzwilliam College and
University Lecturer, University of Cambridge

EVA LOMNICKA, M.A. (Cantab.), LL.B. (Cantab.)


Bencher of the Middle Temple; Professor of Law, King’s College London

DAVID McCLEAN, C.B.E., Q.C. (Hon.), D.C.L., Hon.D.Litt., F.B.A.


Bencher of Gray’s Inn; Emeritus Professor of Law, University of Sheffield

P. J. S. MACDONALD EGGERS, Q.C., LL.B. (Syd.), LL.M. (Cantab.)


of the Middle Temple, Barrister; Visiting Professor, University College London

E. G. McKENDRICK, Q.C. (Hon.), LL.B., B.C.L., M.A.


Bencher of Gray’s Inn; Fellow of Lady Margaret Hall, Registrar and Professor
of English Private Law, University of Oxford

L. MERRETT, M.A., Ph.D. (Cantab.)


of Gray's Inn, Barrister; Fellow of Trinity College and
Reader in International Commercial Law, University of Cambridge

P. P. MITCHELL, B.A., D.Phil. (Oxon)


Professor of Laws, University College London

[iii]
VINCENT MORAN, Q.C., M.A. (Cantab.)
Bencher of Gray’s Inn, Barrister

JEREMIAS F.B.B. PRASSL, M.A., D.Phil (Oxon), LLM. (Harvard)


Fellow of Magdalen College and Associate Professor of Law in the
University of Oxford

D. D. PRENTICE, LL.B., J.D., M.A.


of Lincoln’s Inn, Barrister; Emeritus Fellow of Pembroke College and formerly
Allen & Overy Professor of Corporate Law, University of Oxford

F. M. B. REYNOLDS, Q.C. (Hon.), D.C.L., F.B.A.


Honorary Bencher of the Inner Temple; Emeritus Fellow of Worcester College
and Professor of Law Emeritus, University of Oxford

SIR GUENTER TREITEL, Q.C., D.C.L., F.B.A.


Honorary Bencher of Gray’s Inn; Formerly Vinerian Professor of English
Law, University of Oxford

G. J. VIRGO, M.A. (Cantab.), B.C.L. (Oxon)


Bencher of Lincoln’s Inn; Fellow of Downing College, Pro-Vice-Chancellor for
Education and Professor of English Private Law, University of Cambridge

WILLIAM WEBB, B.A. (Cantab.), LL.M., B.C.L. (Oxon)


of Lincoln’s Inn, Barrister

R. P. WHISH, Q.C. (Hon.), B.A., B.C.L. (Oxon)


Solicitor of the Supreme Court of Judicature; Emeritus Professor
of Law, King’s College London

SIMON WHITTAKER, D.Phil., D.C.L. (Oxon)


of Lincoln’s Inn, Barrister; Fellow of St John’s College and Professor of
European Comparative Law, University of Oxford

[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.

Within each chapter, updating information is referenced to the relevant paragraph


in the main volume.

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

2. The Agreement M. Chen-Wishart 2–001


3. Mistake as to the Terms or as to Identity H.G. Beale 3–001
4. Consideration G. H. Treitel 4–001
5. Form S. J. Whittaker 5–001
6. Common Mistake H. G. Beale 6–001
7. Misrepresentation H. G. Beale 7–001
8. Duress and Undue Influence H. G. Beale 8–001
PART THREE—CAPACITY OF PARTIES

9. Personal Incapacity S. Whittaker 9–001


10. Corporations and Unincorporated
Associations D. D. Prentice 10–001
11. The Crown, Public Authorities and the
European Community P. P. Mitchell 11–001
12. Political Immunity and Incapacity P. J. S. MacDonald Eggers 12–001
PART FOUR—THE TERMS OF THE CONTRACT

13. Express Terms E. G. McKendrick 13–001


14. Implied Terms E. G. McKendrick 14–001
15. Exemption Clauses S. Whittaker 15–001
PART FIVE—ILLEGALITY AND PUBLIC POLICY

16. Illegality and Public Policy D. D. Prentice 16–001

[vii]
TABLE OF CONTENTS

PART SIX—JOINT OBLIGATIONS, THIRD PARTIES AND ASSIGNMENT

17. Joint Obligations A. S. Burrows 17–001


18. Third Parties G. H. Treitel 18–001
19. Assignment A. S. Burrows 19–001
20. Death and Bankruptcy D. D. Prentice 20–001

PART SEVEN—PERFORMANCE AND DISCHARGE

21. Performance E. G. McKendrick 21–001


22. Discharge by Agreement E. G. McKendrick 22–001
23. Discharge by Frustration E. G. McKendrick 23–001
24. Discharge by Breach E. G. McKendrick 24–001
25. Other Modes of Discharge E. G. McKendrick 25–001

PART EIGHT—REMEDIES FOR BREACH OF CONTRACT

26. Damages H. G. Beale 26–001


27. Specific Performance and Injunction M. Chen-Wishart 27–001
28. Limitation of Actions A. S. Burrows 28–001

PART NINE—RESTITUTION

29. Restitution G. Virgo 29–001

PART TEN—CONFLICT OF LAWS

30. Conflict of Laws L. Merrett 30–001

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]

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