Contract Law: Liability and Crane Hire Agreements
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Questions and Answers

What is the requirement for a written contract according to the British Crane Hire Corp Ltd v Ipswich Plant Hire Ltd case?

It must be uniform, reasonable, and have quite as much certainty as the written document itself.

Under which circumstances can parole evidence be used to suspend the operation of a written contract?

When there is fraud, duress, or undue influence.

What is the effect of ambiguity in a written contract, and how can it be resolved?

Ambiguity can be resolved by considering the surrounding circumstances, including the subject-matter, consideration, and identity of the parties.

What are the two types of exemption clauses, and how do they differ?

<p>The two types of exemption clauses are exclusion clauses, which exclude liability altogether, and limitation clauses, which limit the extent of liability.</p> Signup and view all the answers

What is the basis of liability for a party to a contract, and what are the two types of liability?

<p>The basis of liability is breach of contract, and there are two types of liability: liability for breach of contract and liability independently of the contract, such as negligence.</p> Signup and view all the answers

What is the primary purpose of the privity of contract principle?

<p>To ensure that only parties to a contract can acquire rights and incur liabilities</p> Signup and view all the answers

What is the significance of the Suisse Atlantique case (1967) in contract law?

<p>It established that Exemption clauses construing of EC cannot defeat the main purpose of the contract</p> Signup and view all the answers

What is an exception to the parole evidence rule?

<p>Custom or trade usage</p> Signup and view all the answers

What is a consequence of not being a party to a contract?

<p>A person cannot acquire rights or incur liabilities</p> Signup and view all the answers

What is the Glynn v Margetson & Co case (1983) related to?

<p>Construing of Exemption clauses</p> Signup and view all the answers

What is the purpose of a limitation clause in a contract?

<p>To limit liability</p> Signup and view all the answers

What is a characteristic of a standard form contract?

<p>It is a 'take it or leave it' agreement with no freedom to negotiate</p> Signup and view all the answers

What type of goods is an air carrier not liable for in the event of damage or loss?

<p>Perishable goods</p> Signup and view all the answers

What is the purpose of an exemption clause in a contract?

<p>To exclude or limit liability for certain events or damages</p> Signup and view all the answers

What is one example of a situation where a limitation clause might be used?

<p>A parking lot noting that vehicles are parked at the owner's risk</p> Signup and view all the answers

In the context of contract law, what is the significance of the phrase 'consensus ad idem' and how does it relate to the concept of agreement?

<p>Consensus ad idem refers to the Latin legal maxim meaning 'meeting of the minds', emphasizing the importance of mutual understanding and agreement between parties in a contract.</p> Signup and view all the answers

How do the three national languages of Papua New Guinea (English, Pidgin, and Motu) illustrate the concept of agreement in contract law?

<p>The three national languages of Papua New Guinea (English, Pidgin, and Motu) illustrate the concept of agreement by showing how different languages can convey the same idea of agreement, highlighting the importance of mutual understanding in contract law.</p> Signup and view all the answers

What is the moral basis for contract law, according to the Judeo-Christian perspective, and how does it relate to the concept of law?

<p>The moral basis for contract law, according to the Judeo-Christian perspective, is rooted in the idea of 'do unto others what you would have them do unto you' (Mark 10:9), which emphasizes the importance of reciprocity and respect in contractual relationships, reflecting the concept of law as a means of sustaining and ensuring survival.</p> Signup and view all the answers

What is the significance of the concept of 'persons' in contract law, and how does it relate to the idea of human beings?

<p>In contract law, the concept of 'persons' refers to human beings, excluding non-human species, and is essential in determining the capacity to enter into contractual agreements.</p> Signup and view all the answers

How does the concept of 'two or more parties' in contract law relate to the idea of contractual obligations and rights?

<p>The concept of 'two or more parties' in contract law emphasizes that contractual agreements require multiple parties, which confers rights and imposes obligations that the legal system will enforce.</p> Signup and view all the answers

What is the significance of the intention to create legal relations in a contract, and how does it differ from a domestic or social agreement?

<p>The intention to create legal relations is a crucial element in a contract, as it distinguishes a contract from a domestic or social agreement. In a contract, the parties intend to create legal obligations, whereas in a domestic or social agreement, there is no intention to create legal relations.</p> Signup and view all the answers

What is the purpose of consideration in a contract, and how does it relate to the principle of mutual benefit?

<p>Consideration is the benefit or value that one party receives in exchange for their promise or performance. It is essential in a contract as it ensures that both parties receive a mutual benefit, making the contract enforceable.</p> Signup and view all the answers

In what circumstances can extrinsic evidence be used to interpret a written contract, and what are the limitations of this approach?

<p>Extrinsic evidence can be used to interpret a written contract when the terms of the contract are ambiguous or unclear. However, this approach is limited by the parol evidence rule, which prevents the introduction of extrinsic evidence to contradict or vary the terms of a written contract.</p> Signup and view all the answers

What is the significance of the legality of the object of a contract, and how does it relate to the concept of public policy?

<p>The legality of the object of a contract refers to the requirement that the contract's purpose or objective must be lawful and not contrary to public policy. This is essential, as a contract that violates public policy is unenforceable.</p> Signup and view all the answers

What is the role of formalities in a contract, and how do they impact the enforceability of a contract?

<p>Formalities refer to the requirements that must be met for a contract to be enforceable, such as written form or signature. These formalities ensure that the contract is valid and binding, and failure to comply with them may render the contract unenforceable.</p> Signup and view all the answers

What is the significance of the Dickenson v Dodds (1867) case in relation to the termination of an offer?

<p>The significance of the Dickenson v Dodds (1867) case is that it established that an offer can be terminated before acceptance, and that the death of the offeror can also terminate the offer.</p> Signup and view all the answers

How does the court determine the intention of the parties in implying a term into a contract?

<p>The court determines the intention of the parties in implying a term into a contract by considering factors such as previous conduct, custom or trade usage, and the presumed intention of the parties.</p> Signup and view all the answers

What is the role of custom or trade usage in implying terms into a contract?

<p>Custom or trade usage can imply terms into a contract if it is notorious, certain, reasonable, and not contrary to an express term.</p> Signup and view all the answers

What is the principle behind implying a term into a contract on the basis of 'business efficacy'?

<p>The principle behind implying a term into a contract on the basis of 'business efficacy' is that the term is necessary to give business efficacy to the contract, and it is so obvious that it 'goes without saying'.</p> Signup and view all the answers

What is the significance of the Yarlett v New Guinea Motors Pty Ltd (1985) case in relation to implying terms into a contract?

<p>The significance of the Yarlett v New Guinea Motors Pty Ltd (1985) case is that it established that a term can be implied into a contract if it is necessary to give business efficacy to the contract, and it is so obvious that it 'goes without saying'.</p> Signup and view all the answers

How does the Carlill v Carbolic Smoke Ball Co (1892) case illustrate the concept of an offer and acceptance in contract law?

<p>The case shows that an advertisement can be considered an offer, and a person who purchases the product in response to the advertisement can be considered to have accepted the offer, even without direct communication with the advertiser.</p> Signup and view all the answers

What is the main distinction between an invitation to treat and an offer?

<p>An invitation to treat is an expression of a willingness to negotiate, whereas an offer is a definite promise to be bound by the terms of the contract.</p> Signup and view all the answers

In what circumstances can extrinsic evidence be used to interpret a written contract?

<p>Extrinsic evidence can be used to interpret a written contract when there is ambiguity in the contract or when the contract is incomplete.</p> Signup and view all the answers

What is the significance of the Payne v Cave (1789) case in contract law?

<p>The case established that a shopper's offer to buy is not an acceptance, but rather an offer that the store owner can accept or reject.</p> Signup and view all the answers

How does the Pharmaceutical Society of GB v Boots (1953) case illustrate the concept of invitations to treat?

<p>The case shows that a display of goods in a store is an invitation to treat, and the customer's offer to buy is accepted by the store owner when they accept payment.</p> Signup and view all the answers

What is the effect of custom or trade usage on the interpretation of a written contract?

<p>Custom or trade usage can be used to interpret a written contract, even if it contradicts the express terms of the contract.</p> Signup and view all the answers

What is the main exception to the parole evidence rule?

<p>The main exception to the parole evidence rule is where there is ambiguity in the written contract or where the contract is incomplete.</p> Signup and view all the answers

How does the concept of liability apply in contract disputes?

<p>In contract disputes, liability typically falls on the party who has breached the contract, and the injured party can claim damages.</p> Signup and view all the answers

What is the significance of the Fisher v Bell (1961) case in contract law?

<p>The case established that the display of goods in a store is an invitation to treat, and the customer's offer to buy is accepted by the store owner when they accept payment.</p> Signup and view all the answers

What is the main difference between a unilateral and bilateral contract?

<p>A unilateral contract is where one party makes a promise in exchange for an act, whereas a bilateral contract is where both parties exchange promises.</p> Signup and view all the answers

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