Misrepresentation Cases in Law
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Questions and Answers

What does the rule regarding sufficiency of consideration imply?

  • Consideration must be equal in value to the promise.
  • Consideration must have some value recognized by law. (correct)
  • Consideration must benefit the promisor directly.
  • Consideration can only be monetary.

    • Which of the following statements about past consideration is true?

  • Past consideration can be valid under certain conditions. (correct)
  • Past consideration can form the basis of a valid promise.
  • Past consideration makes the promise voidable.
  • Consideration must always be in the future.

    • In which case was nominal payment deemed sufficient consideration?

  • White v Bluett
  • Hamer v Sidway
  • Chappell v Nestlé
  • Thomas v Thomas (correct)

    • What must consideration do in relation to the promisee?

    <p>It must be provided by the promisee or at their request.</p> Signup and view all the answers

    Which type of duty does NOT qualify as valid consideration?

    <p>Performance of a pre-existing contractual obligation.</p> Signup and view all the answers

    Which case illustrates the idea that consideration could be insufficient because it lacks economic value?

    <p>White v Bluett</p> Signup and view all the answers

    What is one of the tests established by the case of Pao On v Lau Yiu Long?

    <p>There must be a prior request for the act or service.</p> Signup and view all the answers

    What does the case of Combe v Combe illustrate regarding consideration?

    <p>Forbearance must be requested by the promisor.</p> Signup and view all the answers

    In which situation would a promise made after the completion of a contract be unenforceable?

    <p>If it concerns prior work done without a request.</p> Signup and view all the answers

    How does the court generally view the adequacy of consideration?

    <p>The courts focus on whether the consideration has legal value.</p> Signup and view all the answers

    What was the result of the case Hamer v Sidway regarding consideration?

    <p>The nephew's promise of forbearance was seen as valid consideration.</p> Signup and view all the answers

    What is a key aspect of the rule that consideration must move from the promisee?

    <p>It reinforces the importance of privity of contract.</p> Signup and view all the answers

    Which of the following best describes the relationship between consideration and gratuitous promises?

    <p>Consideration is required to make a gratuitous promise enforceable.</p> Signup and view all the answers

    What is required for economic duress to be established?

    <p>Unconscionable conduct</p> Signup and view all the answers

    Which case highlighted that confusion, rather than duress, may lead to a settlement?

    <p>Huyton SA v Peter Cremer</p> Signup and view all the answers

    Under what circumstances can a buyer cancel a contract for repudiatory breach?

    <p>For significant breach</p> Signup and view all the answers

    In the context of undue influence, what must the benefiting party demonstrate?

    <p>The decision was made freely and with full understanding</p> Signup and view all the answers

    What does the principle of laches imply in legal claims?

    <p>Delay in asserting rights can bar a claim</p> Signup and view all the answers

    What defines a situation as involving undue influence in relation to relationships of trust?

    <p>There is exploitation of the relationship for personal gain</p> Signup and view all the answers

    In the case of Lloyds Bank Ltd v Bundy, what was Bundy's position that led to the ruling of undue influence?

    <p>He relied on trust and was vulnerable to financial ruin</p> Signup and view all the answers

    What was the ruling regarding the confidentiality agreement in R v Attorney General of England and Wales?

    <p>It was enforceable with no duress found</p> Signup and view all the answers

    What is a key aspect of consideration in contracts?

    <p>It establishes the enforceability of promises</p> Signup and view all the answers

    In Goodchild v Bradbury, what factor was crucial to finding undue influence?

    <p>The lack of independent legal advice</p> Signup and view all the answers

    What was a significant factor in the case of North Ocean Shipping Co v Hyundai Construction Co regarding duress?

    <p>The defendant's delay and continued performance of the contract</p> Signup and view all the answers

    What does the principle of constructive notice imply in relation to undue influence?

    <p>A party may be liable if aware of undue influence or misrepresentation</p> Signup and view all the answers

    Which statement regarding the burden of proof in undue influence cases is correct?

    <p>The benefiting party must prove the transaction was fair</p> Signup and view all the answers

    What constitutes economic duress according to the legal principles discussed?

    <p>Illegitimate coercion or improper threats</p> Signup and view all the answers

    Which case illustrates that performing an existing contractual duty does not constitute valid consideration for a promise to pay more?

    <p>Stilk v Myrick</p> Signup and view all the answers

    In which situation can performing a duty owed to a third party be considered valid consideration?

    <p>When it constitutes additional benefits for the promisor.</p> Signup and view all the answers

    What is the general rule regarding promises to accept less in payment of a debt?

    <p>Part-payment alone is not sufficient for a promise to discharge the debt.</p> Signup and view all the answers

    Which case is an example of a promise to pay more being enforceable due to fresh consideration?

    <p>Hartley v Ponsonby</p> Signup and view all the answers

    Which of the following describes an essence of the doctrine of promissory estoppel?

    <p>A party cannot go back on a promise if the other has relied on it.</p> Signup and view all the answers

    What was the result of the case Williams v Roffey Bros regarding practical benefits?

    <p>Practical benefits can enforce promises under certain conditions.</p> Signup and view all the answers

    What did the case Collins v Godefroy determine about promises to pay witnesses?

    <p>Payment for witness attendance was unenforceable due to existing legal obligation.</p> Signup and view all the answers

    Which case involved the principle that part-payment could be valid if different consideration was provided?

    <p>Pinnel's Case</p> Signup and view all the answers

    How did the outcome of MWB v Rock Advertising influence the interpretation of practical benefit?

    <p>It initially found practical benefit could be consideration, but was later overturned.</p> Signup and view all the answers

    What occurred in the case Foakes v Beer concerning the waiver of interest?

    <p>The court allowed the creditor to claim back the interest due to lack of consideration.</p> Signup and view all the answers

    In the context of contract law, which of the following best describes 'fresh consideration'?

    <p>An additional benefit or act that goes beyond existing duties.</p> Signup and view all the answers

    Which principle can be derived from the case Shadwell v Shadwell?

    <p>Performance of a duty to a third party can constitute valid consideration.</p> Signup and view all the answers

    What does the term 'practical benefit' refer to in relation to contractual agreements?

    <p>A benefit that materially advantages the promisor from an action performed.</p> Signup and view all the answers

    What distinguishes Hartley v Ponsonby from Stilk v Myrick in terms of enforceability of promises?

    <p>Stilk was about additional pay for normal duties, while Hartley involved dangerous conditions.</p> Signup and view all the answers

    What is generally not considered a legally binding arrangement?

    <p>Social events</p> Signup and view all the answers

    In which scenario can the presumption against intention to create legal relations be rebutted in a domestic context?

    <p>Parties have acted to their detriment</p> Signup and view all the answers

    What was a significant factor in the case of Snelling v John Snelling Ltd that influenced the decision on intent to create legal relations?

    <p>Commercial aspect of the agreement</p> Signup and view all the answers

    What does Parker v Clark illustrate about social or domestic agreements?

    <p>They can be legally binding if executed</p> Signup and view all the answers

    Which case highlights the importance of clear language in avoiding legally binding obligations?

    <p>Rose and Frank Co v JR Crompton and Bros Ltd</p> Signup and view all the answers

    What is a key characteristic of an Invitation to Treat (ITT)?

    <p>It indicates willingness to negotiate</p> Signup and view all the answers

    What happens when a counter-offer is made?

    <p>The original offer is rejected</p> Signup and view all the answers

    What must acceptance of an offer be in order to be valid?

    <p>Unqualified and clear</p> Signup and view all the answers

    Which scenario illustrates a situation where there was no intention to create legal relations?

    <p>A promise made in a pub in jest</p> Signup and view all the answers

    What principle does Simpkins v Pays support regarding social arrangements?

    <p>Reliance and detriment can create binding agreements</p> Signup and view all the answers

    What does the case of Blue v Ashley emphasize regarding offers made in casual environments?

    <p>Intention is crucial in establishing a contract</p> Signup and view all the answers

    Which of the following is NOT a requirement for a valid acceptance of an offer?

    <p>Must be legally documented</p> Signup and view all the answers

    What is a distinguishing feature of an offer compared to an Invitation to Treat?

    <p>An offer is a clear expression of willingness to contract</p> Signup and view all the answers

    Which case illustrates that informal promises can be enforceable under specific conditions?

    <p>Simpkins v Pays</p> Signup and view all the answers

    What must occur for acceptance to be considered valid?

    <p>Acceptance must be both communicated and received by the offeror.</p> Signup and view all the answers

    What happens if the offeror specifies a particular method of acceptance?

    <p>The offeree should comply with the prescribed method.</p> Signup and view all the answers

    What does the contra proferentem rule imply regarding exemption clauses?

    <p>Ambiguities should be interpreted against the party relying on the clause.</p> Signup and view all the answers

    When is acceptance by post considered valid?

    <p>When the letter is posted.</p> Signup and view all the answers

    What is the significance of the case of Hyde v Wrench?

    <p>It established that a counter-offer rejects the original offer.</p> Signup and view all the answers

    What requirement must be met for an exemption clause to effectively exclude liability for negligence?

    <p>It requires clear and specific wording.</p> Signup and view all the answers

    Which case established that a person is bound by the terms of a signed contract, even if they have not read it?

    <p>L'Estrange v F Graucob Ltd</p> Signup and view all the answers

    How does the postal rule apply to acceptance?

    <p>It is valid if it was reasonable to use post and not excluded by the offeror.</p> Signup and view all the answers

    What does silence generally mean in contract acceptance?

    <p>It indicates rejection of the offer.</p> Signup and view all the answers

    In which scenario would actual notice of an exemption clause no longer be required?

    <p>If reasonable notice was previously provided.</p> Signup and view all the answers

    What did the case Pharmaceutical Society of GB v Boots establish?

    <p>The customer makes the offer at the checkout.</p> Signup and view all the answers

    What does the 'red hand rule' relate to in contract law?

    <p>The necessity of greater notice for onerous or unusual terms.</p> Signup and view all the answers

    In the context of communication of acceptance, what is crucial regarding third parties?

    <p>The acceptance must be communicated by an authorized third party.</p> Signup and view all the answers

    Which of the following is NOT a principle established regarding exemption clauses?

    <p>Ambiguities should be interpreted in favor of the party relying on it.</p> Signup and view all the answers

    Under UCTA 1977, what test is applied to determine the reasonableness of an exemption clause?

    <p>The availability of insurance test.</p> Signup and view all the answers

    According to the case Manchester Diocesan Council for Education v Commercial & General Investments Ltd, what happens if an offeree deviates from the prescribed mode of acceptance?

    <p>The acceptance is only valid if less advantageous.</p> Signup and view all the answers

    What is required for a contract to incorporate an exemption clause through consistent and regular use in past dealings?

    <p>Demonstration of mutual consent in past actions.</p> Signup and view all the answers

    What principle does the case Fisher v Bell illustrate regarding invitations to treat?

    <p>Shop displays are invitations to treat, not offers.</p> Signup and view all the answers

    Which of the following is specifically regulated by the Consumer Rights Act 2015?

    <p>The use of exemption clauses.</p> Signup and view all the answers

    What does a counter-offer do in relation to the original offer?

    <p>It rejects the original offer, making it invalid.</p> Signup and view all the answers

    Which scenario would imply that acceptance is not valid?

    <p>The offeree's silence following an offer.</p> Signup and view all the answers

    In assessing the reasonableness of an exemption clause, which factor is considered according to George Mitchell Ltd v Finney Lock Seeds Ltd?

    <p>The resources available to prevent liability.</p> Signup and view all the answers

    What is generally required for an offer to be irrevocable?

    <p>Consideration must be given to keep the offer open.</p> Signup and view all the answers

    What does the term 'significant imbalance' refer to in relation to exemption clauses?

    <p>A term that heavily favors one party at the expense of the other.</p> Signup and view all the answers

    How must clauses that tilt the balance of rights in favor of one party be expressed, according to the concept of good faith?

    <p>Fully and clearly, without ambiguity.</p> Signup and view all the answers

    According to Canada Steamship Lines v The King, what is a requirement for an exemption clause to exclude liability for negligence?

    <p>It must use clear and unambiguous language.</p> Signup and view all the answers

    What is the main legal principle illustrated by the case of Dimmock v Hallett?

    <p>A half-truth can constitute misrepresentation.</p> Signup and view all the answers

    In With v O'Flanagan, what created the duty to disclose?

    <p>Change in circumstances relevant to a previous statement.</p> Signup and view all the answers

    What was the key factor in the ruling of Horsfall v Thomas regarding fraudulent misrepresentation?

    <p>The claimant's duty to inspect the object.</p> Signup and view all the answers

    In Peek v Gurney, why was the misrepresentation in the prospectus not actionable for the secondary market purchaser?

    <p>The prospectus was not intended for secondary market investors.</p> Signup and view all the answers

    What liability principle does JEB Fasteners v Mark Bloom illustrate regarding reliance on professional work?

    <p>Claimants must have acted differently to claim damages.</p> Signup and view all the answers

    Which case demonstrates that reliance on one's own investigation rather than seller's representations can negate claims of misrepresentation?

    <p>Attwood v Small</p> Signup and view all the answers

    What characterizes sales talk or 'puffery' in terms of misrepresentation in legal terms?

    <p>It often lacks legal consequences.</p> Signup and view all the answers

    Which statement correctly captures the outcome of Dimmock v Hallett regarding the importance of full disclosure?

    <p>Partial truths can mislead and are actionable.</p> Signup and view all the answers

    What principle applies when a party conducts their own investigation and is deemed to rely on their judgment rather than the representation?

    <p>Reliance on personal judgment is established</p> Signup and view all the answers

    In the case of Long v Lloyd, what does the failure to investigate a misrepresentation indicate about reliance?

    <p>There is no duty to investigate representations</p> Signup and view all the answers

    What is the consequence of affirming a contract after discovering a misrepresentation?

    <p>Right to rescind is lost</p> Signup and view all the answers

    What is the time limitation related to rescission for innocent misrepresentation as established in Leaf v International Galleries?

    <p>Rescission barred due to unreasonable delay</p> Signup and view all the answers

    In Smith New Court Securities v Scrimgeour Vickers, what type of losses are recoverable due to fraudulent misrepresentation?

    <p>Both direct and consequential losses</p> Signup and view all the answers

    What principle is established regarding economic duress in relation to a party's alternatives?

    <p>Illegitimate pressure permits voiding of contracts</p> Signup and view all the answers

    Which case involves a situation where a payment made under threat can be deemed voidable?

    <p>Universal Tankships Ltd v ITWF</p> Signup and view all the answers

    What defines the principle of economic duress regarding the legitimacy of the threat?

    <p>The threat must exploit a party's lack of alternatives</p> Signup and view all the answers

    In CTN Cash and Carry Ltd v Gallaher Ltd, what key factor led to the court's decision regarding economic duress?

    <p>The defendant believed the claim was owed</p> Signup and view all the answers

    Which of the following is correct about the damages for negligent misrepresentation according to section 2(1) of the Misrepresentation Act 1967?

    <p>Damages are treated as if fraudulent</p> Signup and view all the answers

    Which of the following factors can lead to rescission being lost?

    <p>Confirmation of the original agreement</p> Signup and view all the answers

    What is true about innocent misrepresentation according to section 2(2) of the Misrepresentation Act 1967?

    <p>Damages may be awarded in lieu of rescission</p> Signup and view all the answers

    In Kolmar Group AG v Traxpo Enterprises, what was considered when determining the legitimacy of threats?

    <p>The existence of realistic alternatives</p> Signup and view all the answers

    What is a key requirement for a promise to be actionable under promissory estoppel?

    <p>The promisee must have relied on the promise.</p> Signup and view all the answers

    In the case of D & C Builders v Rees, what was the key finding regarding promissory estoppel?

    <p>The builders were found to have acted in bad faith.</p> Signup and view all the answers

    What does promissory estoppel primarily act as in legal terms?

    <p>A method to enforce promises without consideration.</p> Signup and view all the answers

    Which case exemplifies the principle that negotiations over a lease can lead to estoppel?

    <p>Hughes v Metropolitan Railway Co</p> Signup and view all the answers

    What is a common outcome for exemption clauses in contracts?

    <p>They require reasonable notice to be enforceable.</p> Signup and view all the answers

    Which principle did Lord Hoffmann emphasize regarding contractual interpretation?

    <p>The reasonable person's understanding is paramount.</p> Signup and view all the answers

    Which case indicated that detrimental reliance is not essential for establishing estoppel?

    <p>The Post Chaser</p> Signup and view all the answers

    What is a primary limitation of promissory estoppel?

    <p>It can only serve as a defense against claims.</p> Signup and view all the answers

    What is a significant aspect in assessing exemption clauses?

    <p>Their fairness must be scrutinized.</p> Signup and view all the answers

    Which of the following correctly describes a characteristic of consideration in contract modification?

    <p>A practical benefit can sometimes satisfy consideration requirements.</p> Signup and view all the answers

    How does the modern approach to contractual interpretation differ from the old approach?

    <p>It incorporates external factors and context.</p> Signup and view all the answers

    What does the 'red hand rule' pertain to in the context of exemption clauses?

    <p>It suggests onerous clauses require more notice.</p> Signup and view all the answers

    Which principle suggests that wording in a contract should reflect its natural and ordinary meaning?

    <p>Lord Hoffmann's Fifth Principle.</p> Signup and view all the answers

    Which of the following illustrates how prior dealings can affect the incorporation of exemption clauses?

    <p>Regular terms can become standard in future contracts.</p> Signup and view all the answers

    What is the intention to create legal relations (ITCLR) in contract law?

    <p>Parties must intend for their agreement to have legal consequences.</p> Signup and view all the answers

    Which presumption applies to agreements made in business or commercial contexts?

    <p>Presumption that parties intended to create legal relations.</p> Signup and view all the answers

    What happens if a court determines that there was no intention to create legal relations?

    <p>Parties cannot sue each other for breach of contract.</p> Signup and view all the answers

    In the Balfour v Balfour case, why did the court rule there was no enforceable contract?

    <p>The arrangement was made in a social context without legal intention.</p> Signup and view all the answers

    What factor can help rebut the presumption against ITCLR in domestic agreements?

    <p>Separation of the parties involved.</p> Signup and view all the answers

    In the case of Jones v Padavatton, why was the mother's promise not enforceable?

    <p>The agreement was a family arrangement without legal intent.</p> Signup and view all the answers

    What distinguishes Merritt v Merritt from Balfour v Balfour?

    <p>Parties had separated, indicating intent to create legal relations.</p> Signup and view all the answers

    What is one consequence of establishing ITCLR within an agreement?

    <p>Parties can sue for breach of contract if not honored.</p> Signup and view all the answers

    Which factor would NOT typically be considered in assessing ITCLR?

    <p>The market value of the subject matter.</p> Signup and view all the answers

    What did the case of Lens v Devonshire Club highlight regarding social agreements?

    <p>Participants in social competitions cannot seek legal recognition.</p> Signup and view all the answers

    How can the objective assessment of ITCLR differ from subjective intent?

    <p>Objective assessment examines all available evidence, including actions.</p> Signup and view all the answers

    Which of the following is a core principle regarding domestic agreements?

    <p>Courts generally do not interfere in personal relationships.</p> Signup and view all the answers

    What is the main reason courts hesitate to treat domestic agreements as legally binding?

    <p>They could lead to increased litigation over personal matters.</p> Signup and view all the answers

    What role do rebuttable presumptions serve in assessing ITCLR?

    <p>They act as starting points that can be challenged with evidence.</p> Signup and view all the answers

    What was the ruling in the case of Selectmove concerning the promise of future tax payments?

    <p>It was deemed to be an existing obligation.</p> Signup and view all the answers

    In the case of The Brimnes, when does acceptance take place according to the court's determination?

    <p>When the message arrives during office hours.</p> Signup and view all the answers

    Which statement is true about the revocation of offers based on Routledge v Grant?

    <p>An offer can be revoked at any time before acceptance.</p> Signup and view all the answers

    What principle was established in the case Adams v Lindsell regarding acceptance through post?

    <p>Acceptance takes effect when posted if posting was expected.</p> Signup and view all the answers

    What did the court determine in Dickinson v Dodds regarding the effectiveness of revocation?

    <p>Revocation is considered effective if received via a reliable third party.</p> Signup and view all the answers

    In the case of Byrne & Co v Van Tien Hoven & Co, what was the ruling regarding the revocation of an offer and its timing?

    <p>The revocation is effective only once received.</p> Signup and view all the answers

    Which of the following is true regarding the concept of office hours in Thomas v BPE Solicitors?

    <p>They vary based on the nature of the communication.</p> Signup and view all the answers

    In the case of Household Fire Insurance v Grant, why did the court rule in favor of the claimant?

    <p>Acceptance was effective when the letter was posted.</p> Signup and view all the answers

    What conclusion did Brinkibon v Stahag Stahl reach regarding the jurisdiction of contract formation?

    <p>Jurisdiction lies where the acceptance is received.</p> Signup and view all the answers

    Which principle does Henthorn v Fraser clarify about the postal rule?

    <p>It applies based on the context of the communication.</p> Signup and view all the answers

    What does the term 'meeting of minds' refer to in contract law?

    <p>The mutual agreement on the terms of the contract.</p> Signup and view all the answers

    What was the main finding in the case of Rust v Abbey Life Assurance?

    <p>Breach of contract can occur without a binding agreement.</p> Signup and view all the answers

    Which aspect of the postal rule was significant in the case of Henthorn v Fraser?

    <p>It applies if both parties anticipate postal communication.</p> Signup and view all the answers

    In Dickinson v Dodds, what led to the court's decision regarding revocation?

    <p>Dickinson received credible information about the revocation.</p> Signup and view all the answers

    What confusion arose regarding the communications in the case of Brimnes?

    <p>The case debated the responsibility for reading messages.</p> Signup and view all the answers

    Study Notes

    Misrepresentation Cases

    • Dimmock v Hallett (1866): A seller advertised land as "fertile and improvable," and currently let to tenants, implying income. However, they didn't disclose that tenants had given notice to leave. This is a half-truth, a form of misrepresentation. "Puffery" (sales talk) isn't usually a factual statement.

    • With v O'Flanagan: The income of a medical practice was accurately reported initially but drastically declined before the sale. The seller didn't disclose this change, creating a duty to disclose the changing circumstances.

    • Horsfall v Thomas (1862): A buyer didn't inspect a gun before purchase. If he had, he'd have discovered a fault. Concealing a patent defect doesn't amount to misrepresentation if the other party fails to inspect.

    • Peek v Gurney (1873): Company directors issued a misleading prospectus to attract initial investors for shares. The claimant bought shares later, but the misrepresentation wasn't intended for secondary market purchasers; therefore, the claimant couldn't sue.

    • JEB Fasteners v Mark Bloom: A professional's liability hinges on the claimant relying on the professional's work. If the claimant would have acted the same regardless, no claim exists. In this case, the audited accounts had errors, but JEB still used them, despite knowing.

    • Attwood v Small: A buyer conducted their own investigations and verified the accuracy of the seller's representations. This reliance on independent investigation diminishes reliance on the seller's statements.

    • Redgrave v Hurd: A solicitor selling his practice misrepresented his income. The buyer failed to examine documents. Failure to investigate does not negate reliance on the representation, and there's no duty to investigate.

    • Long v Lloyd: The buyer purchased a lorry with misrepresentations about its condition, speed, and fuel efficiency. The buyer accepted a repair at half price after the lorry broke down; by then, the buyer affirmed the contract and lost the right to rescind.

    • Leaf v International Galleries: A painting was falsely claimed to be by a famous artist. The buyer sued five years later. An unreasonable delay in seeking rescission after discovering the misrepresentation bars the claim.

    • Doyle v Olby: A business sale was fraudulently misrepresented; damages compensated the claimant for all losses—direct and consequential—directly resulting from the fraud.

    Further Misrepresentation Points

    • Rescission: Setting aside the contract, restoring parties to pre-contract positions. It can be lost through affirmation, delay, impossibility, or rights of third parties.
    • Damages: Financial compensation for injury.
    • Fraudulent Misrepresentation: All direct losses recoverable.
    • Negligent Misrepresentation: Measured as if fraudulent.
    • Innocent Misrepresentation: Damages may be awarded in lieu of rescission.

    Duress and Undue Influence

    • Universal Tankships v. International Transport Workers Federation: Unlawful threats and a lack of reasonable alternatives made a contract variation voidable. Economic duress occurred.
    • DSND Subsea Ltd v. Petroleum Geo-Services: A threat to send an empty trailer, exploiting financial pressure, exerted illegitimate pressure, making a contract variation voidable.
    • The Atlantic Baron: Payment made under duress can be voidable. Unions aren't liable for action related solely to employment terms.
    • Kolmar Group AG v Traxpo Enterprises Pvt Ltd: Exploiting another party's urgent need and lack of alternatives when threatening to breach a contract is illegitimate duress.
    • CTN Cash and Carry Ltd v Gallaher Ltd: Lawful pressure is not necessarily duress, especially when the pressure is exerted in good faith.
    • Pakistan International Airlines Corp v Times Travel (UK): Lawful pressure, conducted in good faith, is not duress.
    • Huyton SA v Peter Cremer GmbH & Co: A seller's error, not duress, influenced a settlement, as the buyer could cancel for a repudiatory breach.
    • Pao On v Lau Yiu Long: Commercial pressure alone does not constitute duress or undue influence. Illegitimate coercion is needed.
    • North Ocean Shipping Co v Hyundai Construction Co (The Atlantic Baron): Delayed action affirms the contract, barring rescission for economic duress.
    • Allcard v Skinner: A gift made under undue influence can be set aside, but undue delay may bar the claim.
    • Lloyds Bank Ltd v Bundy: A presumption of undue influence arose in a relationship of trust and reliance, which the bank failed to rebut.
    • R v Attorney General of England and Wales: Threats of lawful actions aren't duress unless they force unlawful actions. No undue influence or lack of consideration for the contract.
    • Goodchild v Bradbury: Gift from an elderly donor was set aside due to a presumption of undue influence, as the transaction was unusual. Lack of independent legal advice strengthened the presumption.
    • Barclays Bank Plc v O'Brien: The wife’s consent was invalidated due to undue influence and misrepresentation by the husband, as the bank had constructive knowledge of the situation.

    Consideration

    • Consideration: Something of value exchanged for a promise, turning a gratuitous promise into a legally binding obligation, not necessarily fair (adequate).
    • Sufficient but Not Adequate: Consideration must have some value, but the court won't assess its fairness.
    • Past Consideration is Insufficient: Promises made after a service is performed are generally unenforceable.
    • Pao On v Lau Yiu Long: Exceptions to the past consideration rule. The prior request for the act and an implied promise of remuneration are prerequisites for valid past consideration.
    • Consideration Must Move From the Promisee: The promisee must provide consideration, not a third party, although the benefit to the promisor isn't essential.
    • Performance of Pre-existing Duty: Performing a pre-existing duty isn't valid consideration.

    Modification Promises and Promissory Estoppel

    • Modification Promises:
      • Promises to Pay More: Performing the existing duty isn't consideration. Fresh consideration is needed except for "practical benefit."
    • Stilk v Myrick: Sailors promised more pay but not enforceable; their existing duty was sufficient.
    • Hartley v Ponsonby: Sailors took over a much more dangerous task; their new obligation was enforceable.
    • Williams v Roffey Bros: The court found new consideration in a contractor's promise for practical benefits.
    • Williams v Roffey Criteria: A pre existing contract, doubt about completion, additional payment, practical benefit for promisor, absence of duress, valid consideration.
    • Promises to Accept Less: Part payment isn't consideration.
    • Foakes v Beer: Part payment of a debt wasn't sufficient consideration.
    • Practical Benefit: An unclear exception to part payment, potentially allowing it if practical benefit is gained.
    • Promissory Estoppel: Prevents a party from going back on a promise. Parties' reliance and inequity are essential components.
    • Central London Property Trust v High Trees House: Promissory estoppel allows suspension, not extinguishment, of existing rights.

    Contractual Interpretation

    • Objective Intention: Courts focus on the reasonable meaning of a contract's terms to parties. Literal interpretation now considered less relevant; instead, surrounding circumstances (context and purpose) are paramount.
    • Lord Hoffmann's Five Principles: These principles guide the contextual approach to contract language.
    • Commercial Common Sense: Contracts should generally be interpreted with commercial logic and good faith, as per the circumstances of the parties' interaction.

    Exemption Clauses

    • Incorporation: Exemption clause is valid in various ways: signed contracts, notice at the time of contracting, or prior conduct/custom.
    • Construction: Ambiguity is interpreted against the party seeking to rely on the clause (contra proferentem). Clear language required to exclude liability for negligence.
    • UCTA 1977 and CRA 2015: Important legislation regulating specific exemption clause limitations.
    • ITCLR: Agreements that the parties intended to be legally binding and enforceable.
    • Objective Test: Courts consider actions, words, and overall context, not subjective intentions to assess ITCLR.
    • Presumptions: Domestic or social agreements presumed to lack ITCLR; commercial agreements presumed to have ITCLR. Presumptions can be rebutted with evidence.
    • Rebutting Factors: Parties' relationship, agreement's subject matter/impact (value), surrounding circumstances (language, conduct).
    • Cases Illustrated: Cases like Balfour v Balfour, Merritt v Merritt, and Jones v Padavatton illustrate presumption and rebuttal.
    • Specific Cases: Examine ITCLR application in Lens v Devonshire Club, Snelling v John Snelling Ltd, Parker v Clark, Simpkins v Pays, Edwards v Skyways, Rose and Frank Co v JR Crompton and Bros Ltd, Blue v Ashley, and Saddler v Reynolds for further details.

    Offer, Acceptance, and Contract Formation

    • Offer: A clear expression of intent to be legally bound on specific terms, capable of acceptance.
    • Acceptance: Unqualified agreement to the terms of an offer; requires matching the offer without conditions.
    • Communication: Acceptance must be communicated to be valid. Exceptions: prescribed mode, authorized third party, postal rule.
    • Revocation: Offer can be revoked before acceptance but conditions apply.
    • Counter Offer: Modifies the terms of an offer, thus rejecting the original.
    • Cases Illustrated: Cases like Harvey v Facey, Hyde v Wrench, Stevenson, Jacques v McLean, and Butler Machine Tool Co Ltd. v Ex-Cell-O Corp (England) Ltd. are examples of offer and acceptance concepts.
    • Distinguishing ITT: Invitations to treat are expressions of willingness to receive offers.
    • Postal Rule: Acceptance is valid upon posting.
    • Case Examples for ITT: Gibson v Manchester City Council, Partridge v Crittenden, Fisher v Bell, and Pharmaceutical Society of GB v Boots clarify different situations.
    • Case Examples for Acceptance: Manchester Diocesan Council for Education v Commercial & General Investments Ltd, Powell v Lee, Felthouse v Bindley, distinguish various instances.

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    This quiz covers landmark cases related to misrepresentation in law. You will explore various scenarios including Dimmock v Hallett and Horsfall v Thomas, emphasizing the importance of truthful representation in sales and agreements. Test your knowledge on the nuances of legal misrepresentation principles.

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