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ACKNOWLEDGEMENTS
Grateful acknowledgement is made to all the authors and publishers of copyright material
that appears in this book, and in particular to the following for permission to reprint ma-
terial from the sources indicated. Extracts from Law Commission Reports, Consultation
Papers, and Discussion Papers are Crown copyright material and are reproduced under
Class Licence Number C2006010631 with the permission of the Controller of OPSI and the
Queen’s Printer for Scotland.
Cambridge Law Journal and the authors: extracts from Cambridge Law Journal (CLJ):
S Smith: ‘Contracting Under Pressure: A Theory of Duress’, 343 CLJ (1997); and extracts
from L’Estrange v. Graucob, 104 CLJ (1973).
Cardozo Law Review: extract from A W Brian Simpson, Contracts for Cotton to Arrive: The
Case of the Two Ships Peerless, 11 Cardozo L. Rev. 287 (1989).
Estate of A W B Simpson: extract from The Beauty of Obscurity: Raffles v. Wichelhaus and
Busch (1864) in Leading Cases in the Common Law (Oxford University Press, 1995), pp.
138–139.
Estate of P Birks: extract from ‘Equity in the Modern Law: An Exercise in Taxonomy’ (1996)
26 University of Western Australia Law Review 1.
Hart Publishing Ltd (an imprint of Bloomsbury Publishing Plc.): extract from Michael
Spence: Protecting Reliance: The Emergent Doctrine of Equitable Estoppel (Hart, 1999) ©
Michael Spence, 1999, Hart Publishing, an imprint of Bloomsbury Publishing Plc.
Incorporated Council of Law Reporting: extracts from the Law Reports: Appeal Cases
(AC), Chancery (Ch), Industrial Cases (ICR), Kings Bench Division (KB), Queen’s Bench
Division (QB), and Weekly Law Reports (WLR).
Informa Law: extracts from Salmond and Spraggon (Australia) Pty Ltd v Port Jackson
Stevedoring Pty Ltd (The New York Star) [1979] 1 Lloyd’s Rep 298, High Court of Australia.
Reproduced with permission of Informa Law, London.
Informa Maritime & Professional Publishing: extracts from Lloyd’s Maritime and
Commercial Law Quarterly (LMCLQ): N Bamforth: ‘Unconscionability as Vitiating
Factor’, LMCLQ 538 (1995); A Burrows: ‘The Contracts (Rights of Third Parties) Act and
its Implications for Commercial Contracts’, LMCLQ 540 (2000); R Halson: ‘The Offensive
Limits of Promissory Estoppel’, LMCLQ 257 (1999); extracts from Buildings Law Reports
(BLR) and extracts from Lloyd’s Law Reports (LLR).
LexisNexis: extracts from All English Reports (ER) © LexisNexis: Hartog v. Colin & Shields
[1939] 3 All ER 566, King’s Bench Division; Pharmaceutical Society of Great Britain v. Boots
Cash Chemists [1952] 2 All ER 456, Court of Appeal; and extracts from Hugh Collins: The
Law of Contract (4th edn, 2003); Reproduced by permission of RELX (UK) Limited, trading
as LexisNexis.
viii | Acknowledgements
Oxford University Press: Essays on Contract by Patrick S Atiyah (1990) 2527 words from
pp. 179–243. © P S Atiyah 1986; P S Atiyah: The Rise and Fall Freedom of Contract (1979);
P S Atiyah: An Introduction to the Law of Contract (6th edn, 2006); R Brownsword: Contract
Law: Themes for the Twenty-First Century (2nd edn, 2006); Quackery and Contract Law:
Carlill v Carbolic Smoke Ball Company in A W B Simpson: Leading Cases in the Common
Law (1996); R Stevens: Objectivity, Mistake, and the Parol Evidence Rule in A Burrows and
E Peel: Contract Terms (2007); G H Treitel: Some Landmarks of Twentieth Century Contract
Law (2002); S A Smith: Contracts for the Benefit of Third Parties: In Defence of the Third-Party
Rule, 7 OJLS 643 (1997) and extracts from Oxford Journal Legal Studies: S Gardner: Trashing
with Trollope: A Deconstruction of the Postal Rules in Contract, 12 OJLS (1992). © Printed by
permission of Oxford University Press.
Penguin Books Ltd: extracts from R Goode and E McKendrick: Goode on Commercial Law
(5th edn, Penguin Books, 2016), pp. 13–14, copyright © R M Goode 1982, 1995, 2004, 2010.
Reproduced by permission of Penguin Books Ltd.
Singapore Academy of Law: extracts from Chwee Kin Keong v. Digilandmall.com Pte Ltd
[2004] 2 SLR(R) 594 and Gay Choon Ing v. Loh Sze Ti Terence Peter [2009] 2 SLR(R) 332 re-
produced with permission from the Singapore Academy of Law. All rights reserved. No
portion of the case may be used or reproduced without the prior written consent of the
Singapore Academy of Law.
Thomson-Reuters: extract from Lefkowitz v. Great Minneapolis Surplus Stores Inc 86 NW2d
689 (1957) (Supreme Court of Minnesota). Reprinted with permission of Thomson Reuters.
Extract from Waltons Stores (Interstate) Ltd v. Maher (1987) 164 CLR 387, High Court of
Australia. Reproduced with permission of Thomson Reuters (Professional) Australia
Limited, legal.thomsonreuters.com.au. This article was first published by Thomson Reuters
in the Commonwealth Law Reports and should be cited as Waltons Stores (Interstate) Ltd
v. Maher (1987) 164 CLR 387, High Court of Australia. For all subscription inquiries please
phone, from Australia: 1300 304 195, from Overseas: +61 2 8587 7980 or online at legal.
thomsonreuters.com.au/search. The official PDF version of this article can also be pur-
chased separately from Thomson Reuters. This publication is copyright. Other than for the
purposes of and subject to the conditions prescribed under the Copyright Act 1968 (Cth), no
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without prior written permission. Enquiries should be addressed to Thomson Reuters
(Professional) Australia Limited. PO Box 3502, Rozelle NSW 2039. legal.thomsonreuters.
com.au.
Extracts from R Christou: Boilerplate Clauses: Practical Issues (6th edn, 2012); B Coote:
Exception Clauses (1964); Edwin Peel: Treitel on The Law of Contract (14th edn, 2015); and
G H Treitel: Frustration and Force Majeure (2nd edn, 2004); extracts from Law Quarterly
Review: D Friedmann: ‘The Performance Interest in Contract Damages’, 111 LQR 628 (1995);
S A Smith: ‘In Defence of Substantive Unfairness’, 112 LQR 138 (1996); and extracts from
Property, Planning and Compensation Reports (P & CR): Boustany v. Pigott (1995) 69 P &
CR 298, Privy Council © Reproduced by permission of Sweet and Maxwell Ltd, a division of
Thomson-Reuters Limited.
Acknowledgements | ix
University of Chicago: extract from the Journal of Legal Studies 14:2 (1985) ‘Quackery
and Contract Law’ by A W B Simpson. © by the University of Chicago. All rights reserved.
0047-2530/85/1402-0008$01.50
John Wiley and Sons: extracts from Legal Studies: the Journal of the Society of Public Teachers
of Law: J Adams and R Brownsword: ‘The Ideologies of Contract Law’, 7 Legal Studies 205
(1987); S Bright: ‘Winning the Battle Against Unfair Contract Terms’, 20 Legal Studies
331(2000); and P Luther: ‘Campbell, Espinasse and the Sailors: Text and Context in the
Common Law’, 19 Legal Studies 526 (1999). Reproduced with permission of Blackwell
Publishing.
The Yale Law Journal Company: extract from L L Fuller and William R Perdue Jr: ‘The
Reliance Interest in Contract Damages’, 46 The Yale Law Journal 52 (1936). Reproduced with
the permission of the Yale Law Journal.
The publishers would like to acknowledge everybody who kindly granted us permission to
reproduce extracts and quotations throughout this text. Every effort was made to trace copy-
right holders, but we would be pleased to make suitable arrangements to clear permission for
material reproduced in this book with any copyright holders whom it has not been possible to
contact.
GUIDE TO USING THE ONLINE
RESOURCES
The online resources that accompany this book provide students and lecturers with ready-
to-use teaching and learning materials. These materials are free of charge and are designed
to maximize the learning experience.
Guide to Using the Online Resources | xi
Extra material
In-depth material on topics such as illegality and incapacity has been provided in electronic
format for those interested in finding out more about these areas of contract law. A symbol
in the text highlights when additional material can be found as part of the online resources.
Web links
A selection of annotated web links, chosen by the author, have been provided to point stu-
dents in the direction of important research, statistical data, and classic texts to keep them
informed of the developments in contract law, both past and present.
Regular updates
This resource allows students and lecturers to access changes and developments in the law
that have occurred since publication of the book. These are added to the website with page
references to easily enable readers to identify material which has been amended or super-
seded. Updates allow students to stay informed of key developments without having to buy
a new book.
1 INTRODUCTION 1
PART I FORMATION
1. Introduction 17
2. The Objective Theory Illustrated 20
3. The ‘Snapping Up’ Cases 30
4. The Role of Fault 33
1. Introduction 42
(a) General Application 44
(b) The Intention of the Parties 48
(c) The Inter-Related Nature of the Rules 49
(d) The Time at which the Contract was Created 49
(e) Offer and Acceptance and the ‘Will Theory’ of Contract 50
2. Has an Offer Been Made? 52
(a) Advertisements 54
(b) Displays of Goods for Sale in a Shop 61
(c) Tenders 67
(d) Auction Sales 74
3. What Constitutes an Acceptance? 78
(a) Must the Acceptance Coincide Exactly with the Terms of the Offer? 79
(b) Must the Acceptance be Communicated to the Offeror? 93
xiv | Contents
1. Introduction 121
2. Cases in Which it Has Been Held that the Agreement is too Vague or
Uncertain to be Enforced 130
3. Cases in Which the Courts Have Held the Agreement to be Valid and
Binding 133
(a) Make Use of the Criteria or Machinery that Have Been Agreed by the
Parties in Order to Resolve the Uncertainty or to Clarify the Word or
Phrase that is Expressed in Vague Terms 133
(b) The Intervention of Statute 138
(c) Severance 138
(d) Implication of Terms 139
4. Conclusion 141
1. Introduction 143
2. Consideration: Its Scope 144
(a) Consideration Must be Sufficient 145
(b) The Pre-Existing Duty Rule 154
(c) Past Consideration 198
(d) Consideration Must Move from the Promisee 207
(e) Establishing the Necessary Link 207
3. Estoppel: Its Scope 212
(a) Estoppel: A Brief Definition 213
(b) Two Leading Cases 214
(c) The Ingredients of Promissory Estoppel 219
(d) The Different Types of Estoppel 224
(e) Unifying the Estoppels 226
(f) Locating Estoppels 231
4. The Future of Consideration 235
Contents | xv
6 FORMALITIES 245
1. Introduction 245
2. The Reasons for Formal Requirements 247
3. Formal Requirements in English Contract Law 249
(a) Formal Requirements Which are Sufficient to Render the Promise
Binding 249
(b) Formal Requirements Which are Necessary in Order to Render a
Contract Binding 251
4. The Future of Formal Requirements 257
1. Introduction 259
2. Domestic Agreements 260
(a) The Scope of the Presumption 264
(b) Rebutting the Presumption 266
(c) The Rationale Behind the Presumption 268
(d) The Relationship with Consideration 269
3. Social Agreements 271
4. Commercial Agreements 273
(a) Rebuttal of the Presumption 275
(b) Did the Parties Intend to Contract? 277
5. The Future of the Doctrine of Intention to Create Legal Relations 278
PART II TERMS
1. Introduction 284
2. Two Preliminary Issues 285
3. Terms and Representations 285
(a) Three Illustrative Cases 287
(b) Drawing the Threads Together 296
4. The Parol Evidence Rule 297
1. Introduction 304
2. Incorporation by Signature 304
xvi | Contents
1. Introduction 329
2. Terms Implied by Statute 329
3. Terms Implied from Usage or Custom 334
4. Terms Implied by the Courts 337
(a) Terms Implied in Fact 337
(b) Terms Implied in Law 346
5. Conclusion 360
1. Introduction 364
2. The Evolution of the Law 364
3. Restatements of the Applicable Principles 366
4. The Scope of the Applicable Principles 371
(a) The Importance of Principles 371
(b) The Objective Nature of the Test 372
(c) The ‘Factual Matrix’ 372
(d) The Exclusionary Rules 373
(e) The Iterative Nature of the Process 375
(f) Something Has Gone Wrong with the Language 376
1. Introduction 380
2. Boilerplate Clauses and Standard Terms 381
3. Boilerplate Clauses: Some Illustrations 386
(a) General Clause 386
(b) Retention of Title Clauses 386
(c) Price Escalation Clauses 387
(d) Interest 388
(e) Force Majeure Clauses 388
(f) Choice of Law Clauses 390
(g) Arbitration Clauses 391
(h) Jurisdiction Clauses 392
(i) Hardship Clauses 393
(j) Entire Agreement Clauses 394
Contents | xvii
1. Introduction 397
2. Interpretation 399
(a) Excluding Liability in Negligence 402
(b) Fundamental Breach 404
(c) Limitation Clauses 406
(d) Indirect or Consequential Loss 407
3. The Unfair Contract Terms Act 1977 408
4. Two Illustrative Cases 430
5. Conclusion: Defence or Definition? 440
1. Introduction 445
2. Part 2 of the Consumer Rights Act 2015 446
3. Enforcement 468
1. Introduction 472
2. Walford v. Miles 474
3. Good Faith: The Negative View 480
4. Good Faith: The Neutral View 482
5. Good Faith: The Positive View 484
6. Good Faith in the Performance of a Contract? 488
16 MISTAKE 499
1. Introduction 500
2. Mistake: The Difficulties 501
3. Mistakes and Formation 503
(a) Knowledge of a Mistake as to the Terms of the Contract 503
(b) Latent Ambiguity 504
xviii | Contents
17 MISREPRESENTATION 557
1. Introduction 558
2. What is a Misrepresentation? 559
(a) Statements of Opinion 562
(b) Statements of Intention and Inducement 565
(c) Statements Made by Conduct 567
3. Duty of Disclosure 570
4. Rescission 575
(a) What is Rescission and When is it Available? 575
(b) Loss of the Right to Rescind 581
5. Damages 586
(a) Section 2(1) of the Misrepresentation Act 1967 587
(b) Common Law Negligence 597
(c) Deceit 597
(d) Section 2(2) of the Misrepresentation Act 1967 598
(e) Rescission and an ‘Indemnity’ 602
6. Exclusion of Liability for Misrepresentation 603
18 DURESS 607
1. Introduction 608
2. Duress of the Person 609
3. Duress of Goods 614
4. Economic Duress 616
5. Conclusion 630
(a) Lack of Consent 630
(b) Illegitimacy 633
1. Introduction 636
2. Three-Party Cases 639
Contents | xix
1. Introduction 662
2. Unfairness in the Cases 664
3. The Role of Statutes 668
4. A General Principle? 669
5. The Search for Coherence 671
1. Introduction 681
2. Construction of the Contract 691
3. Foreseeable Events 693
4. Self-Induced Frustration 696
5. Frustrating Events 703
(a) Impossibility 703
(b) Illegality 703
(c) Frustration of Purpose 704
6. The Effects of Frustration 713
7. The Basis of Frustration 726
1. Introduction 738
2. What is a Breach of Contract? 738
3. The Existence of a Right to Terminate 741
(a) Breach of a Condition 742
(b) Breach of a Warranty 757
(c) Breach of an Intermediate Term 758
(d) Making the Choice 764
(e) Termination Clauses 768
(f) The Relevance of Good Faith 772
(g) Some Comparative Reflections 774
4. Election 776
xx | Contents
23 DAMAGES 791
1. Introduction 792
2. Damages: The Different Measures 793
3. The Performance Interest 802
4. The Reliance Interest 825
5. The Restitution Interest 832
6. Non-Pecuniary Losses 834
7. The Date of Assessment 845
8. Limiting the Protection of the Performance Interest 847
(a) Remoteness 847
(b) Mitigation 872
(c) Contributory Negligence 875
9. Negotiating Damages and Account of Profits 880
10. Punitive Damages 887
11. Agreed Damages Clauses 888
12. Deposits and Part Payments 895
1. Introduction 930
2. Contract Structures 931
Contents | xxi
Where extracts from cases are reproduced, the relevant page numbers are shown in bold.
A v Bottrill [2002] UKPC 44, [2003] 1 AC 449 … 888 Amiri Flight Authority v BAE Systems plc [2003]
A Roberts & Co Ltd v Leicestershire County EWCA Civ 1447, [2004] 1 All ER (Comm)
Council [1961] Ch 555 … 546 385 … 427
A Schroeder Music Publishing Co Ltd v Macaulay Anangel Atlas Compania Naviera SA v
[1974] 1 WLR 1308 … 7 Ishikawajima–Harima Heavy Industries Co Ltd
Actionstrength Ltd v International Glass Engineer- (No 2) [1990] 2 Lloyd’s Rep 526 … 175
ing IN.GL.EN SpA [2003] UKHL 17, [2003] 2 Andrews v Australia and New Zealand Banking
AC 541 … 255–6 Group Ltd (2012) CLR 205, [2013] BLR
Adams v Lindsell (1818) 1 B & Ald 681 … 101 111 … 894
Adderley v Dixon (1824) 1 Sim & St 607 … 902 Andrews v Hopkinson [1957] 1 QB 229 … 932
Addis v Gramophone Co Ltd [1909] AC 488 … 887 Andrews Bros (Bournemouth) Ltd v Singer and
Adler v Dickson [1955] 1 QB 158 … 981 Co Ltd [1934] 1 KB 17 … 399
AEG (UK) Ltd v Logic Resource Ltd [1996] Andriciuc v Banca Românească SA (Case
CLC 265 … 319, 398 C-186/16) … 450, 454
African Export-Import Bank v Shebah Exploration Anglia Television v Reed [1972] 1 QB 60 … 827–8
& Production Co Ltd [2017] EWCA Civ 845, Annulment Funding Co Ltd v Cowey [2010]
[2017] BLR 469 … 412 EWCA Civ 711, [2010] BPIR 1304 … 654
African Minerals Ltd v Renaissance Capital Ltd Antons Trawling Co Ltd v Smith [2003] 2 NZLR
[2015] EWCA Civ 448 … 378 23 … 175
Ailsa Craig Fishing Co Ltd v Malvern Fishing Appleby v Myers (1867) LR 2 CP 651 … 725
Co Ltd [1983] 1 WLR 964 … 406 Araci v Fallon [2011] EWCA Civ 668, [2011] All
Air Transworld Ltd v Bombardier Inc [2012] ER (D) 37 (Jun) … 922
EWHC 243 (Comm), [2012] 1 Lloyd’s Rep Arcos Ltd v E A Ronaasen and Son [1933] AC
349 … 427 470 … 744
Ajayi v R T Briscoe (Nigeria) Ltd [1964] 1 WLR Ark Shipping Company LLC v Silverburn Shipping
1326 … 219, 220, 221 (IoM) Ltd [2019] EWCA Civ 1161 … 765, 768
Al Nehayan v Kent [2018] EWHC 333 Arkwright v Newbold (1881) 17 Ch D 301 … 571
(Comm) … 495 Armour v Thyssen Edelstahlwerke [1991] 2
Albazero, The [1977] AC 774 … 958 AC 339 … 387
Albert v Motor Insurers’ Bureau [1972] Arnold v Britton [2015] UKSC 36, [2015]
AC 301 … 272–3 AC 1619 … 363, 366, 368–9, 375, 377, 378
Alec Lobb (Garages) Ltd v Total Oil (Great Britain) Associated Japanese Bank v Crédit du Nord SA
Ltd [1983] 1 WLR 87 … 633, 665 [1989] 1 WLR 257 … 532, 533, 535–6
Alev, The [1989] 1 Lloyd’s Rep 138 … 176, 608 Astley v Austrust Limited (1999) 197 CLR 1 … 879
Alf Vaughan & Co Ltd v Royscot Trust plc [1999] 1 Astley v Reynolds (1731) 2 Str 915 … 615
All ER (Comm) 856 … 633 Astor Management AG v Atalaya Mining plc
Alfred McAlpine Construction Ltd v Panatown [2017] EWHC 425 (Comm), [2017] 1 Lloyd’s
Ltd [2000] UKHL 43, [2001] 1 AC 518 … 392, Rep 476 … 495
803, 812–20, 821–5, 843, 931, 951–2, 955, 957, Astrazeneca UK Ltd v Albemarle International
958, 985 Corporation [2011] EWHC 1574 (Comm),
Ali v Petroleum Company of Trinidad and Tobago [2011] 2 CLC 252 … 406
[2017] UKPC 2, [2017] ICR 531 … 345 Atlas Express Ltd v Kafco [1989] QB 833 … 633
Allcard v Skinner (1887) 36 Ch D 145 … 637, Attica Sea Carriers Corporation v Ferrostaal
640–3, 644, 653, 657, 659 Poseidon Bulk Reederei GmbH (The Puerto
Alliance Bank v Broom (1864) 2 Dr & Sim Buitrago) [1976] 1 Lloyd’s Rep 250 … 787, 788
289 … 212 Attorney-General v Blake [2000] UKHL 45, [2001]
Allied Marine Transport Ltd v Vale do Rio Doce 1 AC 268 … 820, 821, 822, 823, 880, 886–7, 888
Navegacao SA (The Leonidas D) [1985] 1 WLR Attorney-General of Belize v Belize Telecom Ltd
925 … 101 [2009] UKPC 10, [2009] 1 WLR 1988 … 345, 868
Aluminium Industrie Vaasen BV v Romalpa Attrill v Dresdner Kleinwort Ltd [2011] EWCA
Aluminium Ltd [1976] 1 WLR 676 … 386–7 Civ 229, [2011] IRLR 613 … 174
Amalgamated Investment & Property Co Ltd v Attrill v Dresdner Kleinwort Ltd [2013] EWCA
John Walker & Sons Ltd [1977] 1 WLR Civ 394, [2013] 3 All ER 607 … 60, 260, 273
164 … 704 Atwood v Small (1838) 6 C & F 232 … 561
Amalgamated Investment & Property Co Ltd v Avery v Bowden (1855) 5 E & B 714 … 780
Texas Commerce International Bank Ltd [1982] Avon Insurance plc v Swire Fraser Ltd [2000] 1 All
QB 84 … 224, 225, 226, 483 ER (Comm) 573 … 596
Table of Cases | xxiii
Avraamides v Colwill [2006] EWCA Civ 1533, Blue v Ashley [2017] EWHC 1928
[2007] BLR 76 … 992 (Comm) … 174–5
Avrora Fine Arts Investment Ltd v Christie, Bolton v Madden (1873) LR 9 QB 55 … 207
Manson & Woods [2012] EWHC 2198 (Ch), Borden (UK) Ltd v Scottish Timber Products Ltd
[2012] PNLR 35 … 438 [1981] Ch 25 … 387
Axa Sun Life Services plc v Campbell Martin Ltd Borrelli v Ting [2010] UKPC 21 … 625–6
[2011] EWCA Civ 133, [2011] 2 Lloyd’s Bou-Simon v BGC Brokers LP [2018] EWCA
Rep 1 … 394, 415 Civ 1525, [2019] 1 All ER (Comm) 955 … 345
Aziz v Caixa d’Estalvis de Catalunya, Tarragona I Boustany v Pigott (1995) 69 P & CR 298 … 666–7,
Manresa (Case C-415/11) [2013] 3 CMLR 89 … 668
448, 450 Bowerman v Association of British Travel Agents
Ltd [1996] CLC 451 … 59
B & S Contracts and Design Ltd v Victor BP Exploration Co (Libya) Ltd v Hunt (No 2)
Green Publications Ltd [1984] ICR 419 … [1979] 1 WLR 783 … 714, 716–23, 724, 725, 726
389, 616 BP Gas Marketing Ltd v La Société Sonatrach
BHP Petroleum Ltd v British Steel plc [2000] 2 [2016] EWHC 2461 (Comm) … 372, 379
Lloyd’s Rep 277 … 406 Bradford Third Equitable Benefit Building Society
Bainbridge v Firmstone (1838) 8 A & E 743 … 150, v Borders [1941] 2 All ER 205 … 570
153 Braganza v BP Shipping Ltd [2015] UKSC 17,
Baird Textile Holdings Ltd v Marks and Spencer [2015] 1 WLR 1661 … 358
plc [2001] EWCA 274, [2002] 1 All ER (Comm) Bremer Handelsgesellschaft mbH v Vanden
737 … 227, 229, 230, 277–8 Avenne–Izegem PVBA [1977] 1 Lloyd’s Rep
Balfour v Balfour [1919] 2 KB 571 … 59, 260–4, 133 … 691
265–9, 271 Brennan v Bolt Burden (a firm) [2004] EWCA
Banco de Portugal v Waterlow & Sons Ltd [1932] Civ 1017, [2005] QB 303 … 533, 560
AC 452 … 873 Bret v JS (1600) Cr Eliz 755 … 161
Bank of Credit and Commerce International SA Brimnes, The [1975] QB 929 … 97, 114
v Ali [2001] UKHL 8, [2002] 1 AC 251 … 372, Brinkibon Ltd v Stahag–Stahl und
398, 400, 401, 402, 405 Stahlwarenhandelsgesellschaft mbH [1983] 2
Barbudev v Eurocom Cable Management Bulgaria AC 34 … 95–6, 107
EOOD [2012] EWCA 548, [2012] 2 All ER British & American Telegraph Co v Colson (1871)
(Comm) 963 … 133 LR 6 Exch 108 … 106
Barclays Bank plc v Fairclough Building Ltd [1995] British Car Auctions v Wright [1972] 1 WLR
QB 214 … 875–8 1519 … 74
Barclays Bank plc v O’Brien [1994] 1 British Columbia Saw Mill Co v Nettleship (1868)
AC 180 … 639, 640 LR 3 CP 499 … 850
Barry v Davies (Trading as Heathcote Ball & Co) British Crane Hire Corporation v Ipswich Plant
[2000] 1 WLR 1962 … 74–7, 78 Hire Ltd [1975] QB 303 … 325–6
Barton v Armstrong [1976] AC 104 … 609–12, British Fermentation Products Ltd v Compair
613, 618, 630, 631 Reavell Ltd [1999] BLR 352 … 397–8, 413
Bates v Post Office Ltd [2019] EWHC 606 (QB) … British Red Cross v Werry [2017] EWHC 875
319, 495 (Ch) … 532
Bay Hotel and Resort Ltd v Cavalier Construction British Steel Corporation v Cleveland Bridge and
Co Ltd [2001] UKPC 34 … 821 Engineering Co Ltd [1984] 1 All ER 504 …
Behnke v Bede Shipping Co Ltd [1927] 1 KB 649 6, 91–3, 140
… 903 British Sugar plc v NEI Power Projects Ltd (1997)
Bell v Lever Bros Ltd [1932] AC 161 … 501, 87 BLR 42 … 371
519–24, 525–6, 535–6, 539, 541 British Westinghouse Electric and Manufacturing
Bence Graphics International Ltd v Fasson UK Ltd Co Ltd v Underground Electric Railways Co of
[1998] QB 87 … 825, 849 London Ltd [1912] AC 673 … 872
Bentsen v Taylor Sons & Co [1893] 2 QB Britvic Soft Drinks Ltd v Messer UK Ltd [2002] 1
274 … 743, 778 Lloyd’s Rep 20 … 423–4, 873
Beswick v Beswick [1968] AC 58, [1966] Ch 538 … Brogden v Metropolitan Ry Co (1876) 2 App Cas
902, 904, 936, 941, 942–8, 951, 960, 967, 994–5, 998 666 … 101
Biffa Waste Services Ltd v Maschinenfabrik Ernst Bryen & Langley Ltd v Boston [2005] EWCA Civ
Hese GmbH [2008] EWHC 6 (TCC), [2008] 973, [2005] BLR 508 … 450
BLR 155 … 404 Bunge Corporation New York v Tradax Export SA,
Bisset v Wilkinson [1927] AC 177 … 560, 562–4 Panama [1981] 1 WLR 711 … 741, 767–8
BJ Aviation Ltd v Pool Aviation Ltd [2002] EWCA Bunge SA v Nidera BV [2015] UKSC 43, [2015] 3
Civ 163, [2002] 2 P & CR 25 … 130 All ER 1082 … 846
Blackpool and Fylde Aero Club Ltd v Blackpool Butler Machine Tool Co Ltd v Ex–Cell–O
Borough Council [1990] 1 WLR 1195 … 6, Corporation (England) Ltd [1979] 1 WLR
68–71, 119 401 … 45, 80–5, 86–91, 119, 386, 387
xxiv | Table of Cases
Byrne & Co v Van Tienhoven & Co (1880) 5 CPD Chelsfield Advisers LLP v Qatari Diar Real Estate In-
344 … 105, 107, 109, 113–14, 117 vestment Co [2015] EWHC 1322 (Ch) … 357, 496
Byron v Eastern Caribbean Amalgamated Bank Cheltenham Borough Council v Laird [2009]
[2019] UKPC 16 … 346 EWHC 1253, [2009] IRLR 621 … 591
Cherry Tree Investments Ltd v Landmain Ltd
C & P Haulage v Middleton [1983] 1 WLR [2012] EWCA Civ 736, [2013] Ch 305 … 372,
1461 … 829–31, 832 377, 544
CCC Films v Impact Quadrant Films Ltd [1985] Chester Grosvenor Hotel Co Ltd v Alfred
QB 16 … 826 McAlpine Management Ltd (1991) 56 Build
C H Giles & Co Ltd v Morris [1972] 1 WLR 307 LR 115 … 412
… 907–8 Chudley v Clydesdale Bank plc (trading as
CTN Cash and Carry Ltd v Gallaher [1994] 4 All Yorkshire Bank) [2019] EWCA Civ 344, [2019]
ER 714 … 628, 629 3 WLR 661 … 992, 996
Caledonia North Sea Ltd v British Telecommuni- Chwee Kin Keong v Digilandmall.com Pte Ltd
cations plc [2002] UKHL 4, [2002] 1 Lloyd’s Rep [2004] 2 SLR(R) 594 … 32, 66, 107–8, 279
553 … 408 City and Westminster Properties (1934) Ltd v
Campbell v Frisbee [2002] EWCA Civ 1374, [2003] Mudd [1959] Ch 129 … 301
ICR 141 … 777 Clarke v Dickson (1858) EB & E 148 … 582
Campbell Discount Ltd v Bridge [1962] Classic Maritime Inc v Lion Diversified Holdings
AC 600 … 894 Berhad [2009] EWHC 1142 (Comm), [2010] 1
Canada Steamship Lines Ltd v The King [1952] Lloyd’s Rep 59 … 203
AC 192 … 364, 400–1, 404 Clayton–Greene v De Courville (1920) 36 TLR
Canary Wharf (BP4) T1 Ltd v European Medicines 790 … 874
Agency [2019] EWHC 335 (Ch), 183 Con Clea Shipping Corporation v Bulk Oil Interna-
LR 167 … 704, 709–10, 711 tional Ltd (The Alaskan Trader) [1984] 1 All ER
Car and Universal Finance Co v Caldwell [1965] 1 129 … 788
QB 525 … 579–81 Cleaver v Schyde Investments Ltd [2011] EWCA
Cargill International Trading Pte Ltd v Uttam Galva Civ 929, [2011] 2 P & CR 221 … 419
Steels Ltd [2019] EWHC 476 (Comm) … 311 Clydebank Engineering and Shipbuilding Co v
Carillion Construction Ltd v Emcor Engineering Don Jose Ramos Yzquierdo y Castaneda [1905]
Services Ltd [2017] EWCA Civ 65, [2017] BLR AC 6 … 889
203 … 379 Collier v P & M J Wright (Holdings) Ltd [2007]
Carillion Construction Ltd v Felix (UK) Ltd [2001] EWCA Civ 1329, [2008] 1 WLR 643 … 186, 187
BLR 1 … 633 Collins v Godefroy (1831) 1 B & Ad 950 … 157
Carlill v Carbolic Smoke Ball Company [1893] 1 Colour Quest Ltd v Total Downstream UK plc
QB 256 … 49, 55–8, 59, 60, 67, 93, 109, 260 [2009] EWHC 540 (Comm), [2009] 2 Lloyd’s
Carnegie v Waugh (1823) 1 LJ (KB) 89 … 934 Rep 1 … 404
Carter v Boehm (1766) 3 Burr 1905 … 483 Combe v Combe [1951] 2 KB 215 … 208–11, 212,
Cavanagh v Secretary of State for Work and 222, 223
Pensions [2016] EWHC 1136 (QB), [2016] ICR Commercial Banking of Sydney v R.H. Brown and
826 … 993 Co [1972] 2 Lloyd’s Rep 360 … 560
Cavendish Square Holding BV v Talal El Makdessi Commissioner for the New Towns v Cooper
[2015] UKSC 67, [2016] AC 1172 … 889–90, (Great Britain) Ltd [1995] Ch
891, 892, 893, 894, 895, 899 259 … 546
Cehave NV v Bremer Handelsgesellschaft mbH Commonwealth of Australia v Amann Aviation
(The Hansa Nord) [1976] QB 44 … 765 Pty Ltd (1991) 66 ALJR 123 … 832
Central London Property Trust Ltd v High Trees Commonwealth of Australia v Verwayen (1990)
House Ltd [1947] 1 KB 130 … 211, 212, 214–15, 170 CLR 394 … 230, 232
216–17, 218, 219, 220, 221, 222, 224, 483 Compagnie Commerciale Sucres et Denrées v C
Central Railway Co of Venezuela v Kisch (1867) Czarnikow Ltd (The Naxos) [1990] 1 WLR
LR 2 HL 99 … 572 1337 … 768
Centrovincial Estates plc v Merchant Investors Compagnie Noga d’Importation et d’Exportation
Assurance Company Ltd [1983] Com LR 158 … SA v Abacha (No 2) [2003] EWCA Civ 1100,
19, 25–8, 29, 30 [2003] 2 All ER (Comm) 915 … 177
Chandler v Webster [1904] 1 KB 493 … 713, 714 Compaq Computer Ltd v Abercorn Group Ltd
Chapelton v Barry UDC [1940] 1 KB 532 … 313 [1991] BCC 484 … 387
Chaplin v Hicks [1911] 2 KB 786 … 72, 827, 847 Conlon v Simms [2006] EWCA Civ 1749, [2008] 1
Chappell & Co Ltd v The Nestlé Co Ltd [1960] WLR 428 … 575
AC 87 … 146–8, 149, 153 Cook v Wright (1861) 1 B & S 559 … 150–1
Charles Rickards Ltd v Oppenheim [1950] 1 KB Cooper v Phibbs (1867) LR 2 HL
616 … 224 149 … 539
Chartbrook Ltd v Persimmon Homes Ltd [2009] Co-operative Insurance Society Ltd v Argyll Stores
UKHL 38, [2009] 1 AC 1101 … 373–4, 376, 377, (Holdings) Ltd [1998] AC 1 … 901, 902, 906,
544–5, 549 911–19, 920, 926
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But Junior shook his head. "I'm very sorry," he said, "but I can't do it."
And though the crab kept on coaxing and coaxing, he wouldn't give
in.
"Now look here," said Mrs. Sand Witch, "if we keep this up the dinner
will be cold. So run along, Bertha, and maybe after Junior has had a
good dinner he will change his mind."
"No, I won't," said Junior. "And what is more I want to go back to the
beach right off. I told you I was going sailing with my father in a half
hour."
"But," replied Mrs. Sand Witch, as she smacked her lips over the last
of her sandpaper, "that was before you were engaged to be
married."
"I'm not engaged to be married," stormed the boy; "and if I had
known you were this kind of a person I'd never have come down
here."
"Now, now," said Mrs. Sand Witch, "I'm every bit as old as your
mother, and I know what is best for you. You wouldn't like me to
spank you, would you?"
And when she said that, Junior decided he might as well give himself
up for lost. Soon as a person began to say she knew what was best
for you, you might as well make up your mind, you are done for.
"Good gracious!" he said to himself, "whatever shall I do?"
And when dinner was over, and he went into the park again with the
little Sand Witches, he was so depressed he wouldn't play or do
anything; and finally, Ham Sand Witch got tired trying to cheer him
up and went off to play with some other sand witches, leaving Junior
and Lettuce Sand Witch sitting on a bench side by side.
Lettuce Sand Witch, swinging her legs violently, was looking at him.
Then she slid along the bench and snuggled up close. "I'm awfully
sorry," she said. "And I think it's dreadfully mean to make you marry
Bertha. She's not pretty like I am, is she? Wouldn't you rather marry
me?"
And the minute she said that, Junior had a bright idea. He didn't
want to marry Lettuce Sand Witch any more than he wanted to marry
the grateful Bertha, one was as ugly as the other; but maybe if he let
on he wanted to, she might tell him how to get back to the beach. So
he snuggled up to her when she snuggled up to him.
"Maybe I would," he said, smiling at her. "But I couldn't possibly do it
until I asked my mother. You tell me how to get back to the beach,
and if my mother says I can marry you, I'll come right back and do it."
"Oh, will you, really?" cried Lettuce Sand Witch, springing to her feet
and clapping her hands. "Then I'll tell you how to get to the beach, or
at least the way my mother gets there. She stands up straight like
this; holds her nose with her left hand and puts her right hand above
her head; then she blows out her breath instead of drawing it in; and
up she goes. And now, you won't forget to come back?"
"No, indeed," said Junior, "I'll do just as I promised. If my mother tells
me to come back and marry you, I'll do it. And now, good-by, and
thank you very, very much."
The next instant he stood up as straight as he could, grasped his
nose with his left hand, put his right hand above his head, blew out
his breath, and bing—he shot up through the sand, and found
himself right alongside of his bucket and shovel.
He looked about. Everything was just the same. The sun was
shining, people were still in bathing, but nowhere among them could
he see his father, or mother, or sister. And then, presently they came
tearing over the sand toward him.
"You bad boy!" scolded Mrs. Jenks. "Where have you been? We've
been terribly worried! How dare you go off by yourself? Where were
you, I say?"
"Why—why—" began Junior.
Then he stopped. What was the use? He knew they wouldn't believe
him. And if he asked his mother if he could go back and marry
Lettuce Sand Witch as he promised he would ask her, she would say
he was sick or something, and make him go to bed. So he just dug
his toes into the sand and said nothing.
And that is why poor little Lettuce Sand Witch is still waiting
underneath the sand for Junior Jenks to come marry her. And that is
why Junior Jenks keeps looking about so queerly when he plays on
the beach by himself. He is taking no chances of another sociable
sand witch popping up in his neighborhood.
THE FOUNTAIN OF RICHES
No matter what other mistakes you may make in your lifetime, never
make the mistake of renting a cottage from an ogre. If you do, the
chances are you will bitterly regret it, as did Hak, the aged
woodcutter.
Hak, was an old, old man who lived in a forest with his little
grandson, Omo, whose father and mother were dead; and who
earned his living by cutting down trees and chopping them into
firewood. The cottage that Hak and his grandson lived in belonged to
an ogre, and the rent the old man paid for it was not very much; and
as long as he kept his health and strength, he got along very nicely.
But one day, while cutting down a tree he tripped and fell, and before
he could get out of the way the falling tree struck him and broke his
leg. And after Omo had dragged him back into the cottage all he
could do was to lie on his bed and groan, and wait for the leg to get
well.
"Goodness gracious!" he said to the boy, "What shall we do? I won't
be able to work for days and days, and there will be the rent to pay,
to say nothing of the doctor's bill."
"Well," said Omo, "the rent and the doctor's bill will have to wait. So
don't worry."
"I have to worry," replied the old man. "The doctor may wait for his
bill, but the person who owns this cottage will not wait for his rent; no
sir-ee."
Then he told Omo that the cottage belonged to an ogre. "He let me
have it very cheap, but only for a certain reason. What do you think
that reason was?"
"I don't know," replied Omo. "What was it?"
"That he should be allowed to make you into a dumpling for dessert
if I did not pay the rent every month without fail."
"Oh," said Omo, his eyes very big. "I don't wonder you are worried. It
—it makes me feel worried, too! Why did you ever make such a
bargain?"
"Well," said his grandfather, groaning worse than ever, "I never
thought for a minute that I would ever have my leg broken, and I was
so very, very poor I simply had to have a cottage cheap. But now, I'll
not only lose the cottage, but you also. I guess I might as well die."
"Don't you do it!" responded Omo. "I haven't been made into a
dumpling yet, and I'm not going to be, if I can help it. I'll go into the
city and get the doctor, and while I'm there I'll try to earn enough
money to pay the rent."
But Omo's grandfather only shook his head. "You're a plucky boy,
Omo," he said, "but you'll never be able to do it. How can a boy of
seven earn anything?"
"Well, I can try, can't I?" said Omo. "You can't do anything if you don't
try."
So pulling his cap down over his curls, and tucking some bread and
cheese into his pocket, he set off for town. But when he arrived at
the doctor's office he found that the waiting room was crowded with
people, and that he would have to wait his turn.
"Oh, dear," he sighed, as he sat down next to a little old lady with a
frilled bonnet on her head, "this is most unfortunate. My grandfather
ought to be attended to right away."
"Well, he won't get attended to right away," said the old lady, "I can
tell you that! This doctor charges by the length of time you wait in his
office, so he never hurries. I've been here three months."
"Three months!" cried the boy. "Oh, I couldn't possibly wait three
months, or even three days. I'm in a hurry! I've got to earn enough
money to pay the rent of our cottage, or the ogre who owns it will
turn me into a dumpling and eat me."
And when he said that everybody in the waiting room twisted about
and looked at him. "He seems to have a fever," they said.
"See here," said the old lady, "are you sure you're not sick instead of
your grandfather?"
"I'm perfectly well!" exclaimed Omo, indignantly.
"Then you must be joking," responded the other.
"No, I'm not," said Omo. "I mean every word I said. I'm in great
trouble."
"H'm," said the old lady. She got to her feet. "Come on, let's go
outside! We'll save money by it anyway!"
Then as they walked along the street Omo told her all about his
grandfather's accident, and how important it was that the rent should
be paid.
"Ha!" exclaimed the old lady. "I know that ogre! His name is Gub and
he lives on the hill on the other side of the city. I often used to help
people out of his clutches. I'm a retired fairy godmother—haven't
been in business for years and years—but your story interests me.
I've a good mind to help you!"
"Oh, if you only would!" said Omo, "I'd be awfully obliged. You see,
it's not very pleasant to be made into a dumpling, and have my
grandfather put out of his cottage when he has a broken leg. Please,
please, help me!"
"Well," said the old lady, as she led the way into a little house with a
peaked roof, "I only help people who help themselves. Can you help
yourself?"
"Certainly!" said Omo. "Just offer me something and watch me help
myself."
"Very well then, I will," responded the fairy godmother. Going to a
golden desk in a corner she took from it a silver key. "This is the key
that turns on the Fountain of Riches in the City of Ootch. All you
have to do is to put the key in the keyhole at the base of the fountain,
give three turns to the right, three turns to the left, and one turn in the
middle, and instantly the fountain will commence to spout gold
pieces enough to bury you. But you must promise me this, be sure
and turn the fountain off as soon as you get enough gold pieces to fill
your cap; and be sure and bring the key back to me, for I wouldn't
want that key to be left in Ootch, or that fountain to be left spouting,
for anything."
"Why not?" asked Omo. "What's the use of a fountain if it doesn't
spout?"
"Well, you see I presented that fountain to the city of Ootch because
they named the city after my great aunt's trained cockatoo, but after
the fountain started spouting gold pieces everybody had so much
money they all stopped working, and it almost ruined them. The
butcher stopped selling meat, and the baker stopped baking bread,
and the tailor stopped making clothes. Everybody stopped doing
everything, and pretty soon, although everybody had plenty of
money, you couldn't buy anything because nobody would take the
trouble to keep store when they could get money from the fountain.
So I locked the fountain up and took the key with me. And after the
people of Ootch had spent some of the money they had, and lost the
rest, and could not get any more without working for it, everything
got all right again. And that's the reason I don't want the fountain to
keep on spouting again, or want you to leave the key behind you."
"I should think not," said Omo. "It seems as bad to be too rich as it is
to be too poor. I'll be very careful about shutting the fountain off, and
I won't forget to bring back the key. And now how do I get to the city
of Ootch?"
"Just open my back door," said the fairy godmother, handing him the
key, "step out on the step, and then step off. And I do hope you won't
find it raining, for when it rains in Ootch, it rains cats and dogs."
So Omo opened the fairy godmother's back door and stepped out on
the step, and as he stood there all he saw before him was a pretty
little garden. Then, he stepped off the step, and bing—he was in a
queer looking city, and the garden and the back step, and the
cottage, and the fairy godmother, had all disappeared. And in
addition it was raining cats and dogs; regular, real cats and dogs.
"Ouch!" cried Omo, as a fat maltese fell ker-plunk on his head,
yowling like anything. "Whee!" he yelled, as a fox terrier dropped
with a thud on his shoulder and barked in his ear. And then, as black,
white, brown, yellow cats of every color, and dogs, big, little and
medium, began pouring on him and around him, all howling, and
barking, and spitting at the same time, he made a rush for a small
building, open at the sides but with a dome like roof of metal, where
a man was standing.
"Quite a shower, isn't it?" said the man, as Omo reached the shelter.
"A shower," gasped Omo, "why—why, I think it's much more than a
shower. And—and look what's coming down—cats and dogs!"
It was raining cats and dogs
"Well," said the other, "why not? That's what always comes down,
isn't it? That is why we build these cat and dog proof pavilions for
use on rainy days. Now if it rained elephants, that would be an
inconvenience."
"I should say so," replied the boy. "But does it always rain like this?"
"Oh, sometimes it's a great deal worse. I remember about two years
ago I was caught in a storm and eight cats, all in one lump, and
fighting as hard as they could, fell right on top of me as I crossed the
street, and I assure you, sir, I almost lost my temper."
"Well," said Omo, "it's lucky they melt as soon as they reach the
ground or you'd have more cats and dogs than you knew what to do
with."
"Quite true," responded the stranger, "and even as it is, it is quite a
nuisance when a storm comes up."
He was an odd looking fellow with a curly beard, a scimitar in his
sash, and a spotted turban on his head. As he finished speaking he
began twisting at his ear with his finger as though he were winding a
clock.
"What's the matter," asked Omo, "is your ear sore?"
"Certainly not! You know as well as I do I'm only winding myself up
so I can start home as soon as the storm passes."
"Oh," cried Omo, "is that it? Well, I don't have to wind myself up
when I want to go anywhere. I'm always wound up."
"You are!" exclaimed the stranger. "Why, I can hardly believe it! I
never heard of anyone being that way! You can't have lived here
very long."
"Oh, no," said the boy, "I haven't lived here a half hour. I only just
came."
Then he asked his companion if this was the city of Ootch, where the
famous Fountain of Riches was located.
"Oh, yes," said the stranger, "this is the city of Ootch all right. And
the Fountain of Riches is here, too, but it's turned off; been turned off
for years. Gee whiz, don't I remember the good old days when it was
turned on. Everybody got so rich we nearly starved to death because
nobody would work to provide things for us to live on. And then all of
a sudden the fountain stopped, and I had to go to work again. I'm a
night watchman. Not that there is much use of watching the night,
because no one ever tries to steal it, but that's the trade my father
taught me, so I'm it. And now, maybe you'll tell me why you ask
about the Fountain of Riches?"
"Well," said Omo, cautiously, "I've heard so much about it I just
thought I'd like to see it while I was here." He didn't think it wise to
tell anything about the fairy godmother giving him the key to the
fountain for fear some one might try to take the key from him.
"Quite so," said the other, "then you'd better come with me. The
shower is over now, and if you want to see the fountain you've got to
get a permit from the Doodab."
"The Doodab! What's a Doodab?" asked Omo.
"A Doodab," exclaimed the Night Watchman, "is the next swellest
person to a Gumshu. Ootch isn't important enough to be governed
by a Gumshu so they put a Doodab over us, and he's a right decent
chap, and very fond of music. Why I've seen him sit by the hour and
push a slate pencil across a slate and go into ecstasies because it
made his blood run cold. You'll probably like him if you don't hate
him. So come along and see for yourself."
Now the Doodab of Ootch was a very, very fat, and a very, very lazy
gentleman. He hated to be bothered about anything at any time. He
wore rings on his fingers and bells on his toes, and he had a big
hoop of pearls through the end of his nose. And he especially hated
to be bothered when he was singing, which is what he was doing as
Omo and the Night Watchman entered his apartment. And this is
what he was singing in a very quivery voice as he accompanied
himself on a slate with an awfully squeaky slate pencil: