Cases and Materials on Contracts

Ch. 5 Written Documents 2

1. Unsigned Documents (Ticket Cases) 2

Parker v. The South Eastern Railway Company (1877) 2

Lamont v. Canadian Transfer Co. Ltd. (1909) 4

  Chapelton v Barry Urban District Council (1940) 6

 Olley v. Marlborough Court Ltd. (1949) 7

 J Spurling ltd. v. Bradshaw 8

 McCutcheon v. David MacBrayne Ltd. (1964) 9

 Thornton v. Shoe Lane Parking Ltd. (1971) 11

British Crane Hire Corp. Ltd. v. Ipswich Plant hire Ltd. (1975) 12

 2. Parol Evidence Rule 14

 Federal Commerce & Navigation Co. Ltd. v. Trade Export S.A. 14

Prenn v Simmonds 14

Farah v. Barki 16

 Curtis v. Chemical Cleaning and Dyeing Co., Ltd. 17

 Canadian Indemnity Co. v. Okanagan Mainline Real estate Board 17

 Hawrish v. Bank of Montreal 18

Morgan v. Griffith 19

Pym v. Campbell 19

Corbin on Contracts s24.7 20

 Long v. Smith 21

City and Westminster Properties Ltd. V Mudd. 22

 Tilden Rent-A-Car v. Clendenning (Lead Case) 22

Gallen v. Allstate Grain Co. Ltd. (Alford Doesn’t Like?) 24

 3. Rectification 27

U.S.A. v. Motor Trucks, Limited 27

 Bercovici v. Palmer 28

 Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd. 30

 Paget v. Marshall 31

Ch. 6 Protection of Weaker Parties 32

2. Minors 32

Rex v. Rash 32

Nash v. Inman 33

3. Forfeitures and Penalty Clauses 34

Shatilla v. Feinstein 34

 H.F. Clarke Ltd. v. Thermidaire Corp. Ltd. 35

 Stockloser v. Johnson 36

 Forfeiture/Penalty notes 37

4. Clauses Excluding Liability 37

(IC)George Mitchell Ltd. v. Finney Lock Seeds Ltd. 37

(IC)Photo Production Ltd. v. Securicor Transport Ltd. 38

 Hunter Engineering Co. Inc. Et al. v. Syncrude et al. 39

  Fraser Jewellers (1982) Ltd. v. Dominion Electric Protection 40

 Davidson v. Three Spruces Realty Ltd. 42

 Delaney v. Cascade River Holidays Ltd. 43

 Tercon Contractors Ltd. v. British Columbia 44

 Exclusion Clause Notes/Ratios 46

5. Unconscionability and Undue Influence 47

The Limits of Freedom of Contract 47

 Unconscionability and the Code 48

Exploitative Contracts 49

 Post et al. v Jones et al. 50

Marshal v Canada Permanent Trust co. 51

(IC) Mundinger v Mundinger 52

Lloyds Bank Limited v Bundy 53

(IC) Credit Lyonnais Bank Nederland NV v Burch 53

(IC)Royal Bank of Scotland p.l.c. v Etridge (No.2) and Other Appeals 54

(IC)Pridmore v Calvert 54

(IC)Horry v Tate 54

6.Duress 54

(IC)Greater Fredericton Airport authority Inc. v NAV Canada 54

Ch. 7 Public Policy 55

1.Introduction 55

2. The Effects of Illegality 55

Holman v Johnson 55

 3. Contracts Contrary to Public Policy Expressed in the Common Law 56

 Egerton v Brownlow 56

In the Matter of Baby "M" 57

 3.a. Contracts in Restraint of Trade 58

Shafron v KRG Insurance Brokers (Western) Inc. 58

3.b. Contracts Related to Gaming 60

Boardwalk Regency Corp v Maalouf 60

 3.c. Contracts in Furtherance of illegal Purposes 61

Alexander v Rayson 61

3.d. Contracts Conferring Benefits as a Result of Crime 62

Brissette Estate v. Westbury Life Insurance Co. 62

 Oldfield v Transamerica Life Insurance Co. of Canada 64

 4. Contracts Contrary to Public Policy Expressed in Statute 65

 4.a. When a Contract is Rendered Void by Statute 65

Kingshot v. Brunskill 65

 Doherty v Southgate (Township) 66

 4.b. A Common Intent to Perform a Contract Illegally 67

Ashmore, Benson, Pease & Co. Ltd. V A.V. Dawson Ltd. 68

5. Mitigating the Consequences of Illegality 69

5.a. When the Claim is Founded on an Independent Right 69

Mistry Amar Singh v Serwano Wofunira Kulubya 69

 5.b. Restitution 70

 Kiriri Cotton Co. Ltd. V Rachhoddas Keshavji Dewani 70

Outson v Zurowski 72

  5.c. Severance of Illegal Provisions 74

William E. Thomson Associates Inc. v Carpenter 74

 New Solutions Financial Corporation v Transport North American Express Inc. 75

 6. A More Modern Approach? 77

Still v The Minister of National Revenue 77

 Ch. 8 Performance and Breach 78

1. Repudiatory Breach 78

Kingston v Preston 78

 Note Case 80

 Bettini v Gye 80

 Poussard v Spiers and Pond 81

 Maple Flock Company, Ltd. V Universal Furniture Products (Wembley), Ltd. 83

 2. Waiver and the True Condition Precedent 85

Panoutsos v Raymond Hadley Corporation of New York 85

Turney and Turney v Zhilka 86

 3. The Position of the Party in Breach 87

Jacob & Youngs, Inc. v Kent 87

Hoenig v Isaacs 89

 Sumpter v Hedges 90

 Ch. 9 Mistake 91

 2. Misrepresentations 92

Grotius, “Whether a Promise given under a Misapprehension Is by the Law of Nature Binding, and to What Extent" (1625) 92

Heilbut, Symons & Co. v Buckleton 92

 Bentley (Dick) Productions Ltd. v Smith (Harold) (Motors) Ltd. 94

 Redgrave v. Hurd 95

 Newbigging v Adam 97

 Kupchak v Dayson Holdings Ltd. 98

Redican v. Nesbitt 99

 Leaf v International Galleries 100

 (IC)O'Flaherty v McKinley 101

Murray v Sperry Rand Corporation 102

4. Mistake About Contractual Terms 103

(IC) Hobbs v Esquimalt & Nanaimo Railway Company 103

(IC) Raffles v Wichelhaus 104

(IC) Staiman Steel Ltd. v Commercial & Home Buildings Ltd. 104

(IC) Henkel v Pape 104

(IC) Smith v Hughes 104

5. Mistake in Assumptions 104

(IC) Anthony Duggan, "Silence as Misleading Conduct: an Economic Analysis" 104

(IC) Laidlaw v Organ 104

(IC)Bell v Lever Brothers Ltd. 105

(IC) Solle v Butcher 105

(IC)Magee v Pennine Insurance Co. 105

(IC)Great Peace Shipping Ltd. v Tsavliris Salvage (International) Ltd. 105

(IC)Miller Paving Limited v B. Gottardo Construction Ltd. 105

(IC)Scott v Coulson 106

(IC)Sherwood v Walker 106

(IC)McRae v Commonwealth Disposals Comm. 106

(IC)Wood v Boynton 106

Ch. 10 Frustration 106

3. The Rule of Absolute Promises 106

Paradine v Jane 107

4. Relaxation of the Rule of Absolute Promises 108

Taylor v Caldwell 108

Amalgamated Investment and Property Co. Ltd. v John Walker & Sons Ltd 109

Capital Quality Homes Ltd. v Colwyn Construction Ltd 111

Victoria Wood Development Corp. v Ondrey 112

Howell v Coupland 113

Canadian Industrial Alcohol Company, Ltd. v Dunbar Molasses Company 115

 Parrish & Heimbecker Ltd. v Gooding Lumber Ltd. 116

 Krell v Henry 117

Aluminum Co. of America v Essex Group Inc. 119

Eastern Air Lines v Gulf Oil Corp. 121

Edwinton Commercial Corporation and another v Tsavliris Russ (Worldwide Salvage and Towage) Ltd. ("The Sea Angel") 123

Tsakiroglou & Co. Ltd. v. Noblee Thorl G.m.b.H 126

 Transatlantic Financing Corp v. United States 127

Davis Contractors Ltd. v Fareham Urban District Council 129

Ch. 2 Remedies for Breach of Promise 131

 1. The Interests Protected 131

Wetheim v Chicoutimi Pulp Company 131

Bollenback v Continental Casualty Company (1965) 131

Anglia Television Ltd. v Reed (1972) 133

A.I. Ogus, "Damages for Pre-Contract Expenditure" 134

Pitcher v Shoebottom (1971) 135

 Hawkins v McGee 136

 2. Problems in Measuring Damages 137

2.A. Cost of Substitute Performance, or Economic Value? 137

Carson v Willitts (1930) 137

Groves v John Wunder Co 138

2.B. Lost Volume 139

The Sales of Goods Act 139

 Thompson (W.L.) Ltd. v Robinson (Gunmakers) Ltd. (1955) 140

 Charter v Sullivan(1957) 141

 3. Remoteness 141

British Columbia Saw Mills Co. v Nettleship 1868 141

 Hadley v Baxendale (1854) 142

Horne v The Midland Railway Company(1873) 143

 Note Cases 144

Victoria Laundry Ltd. v Newman Industries Ltd. (1949) 144

Koufos v C. Czarnikow, Ltd. (The Heron II) 146

Transfield Shipping Inc. v Mercator Shipping Inc. (The Achilleas) 147

Cornwall Gravel Co. Ltd. v Purolator Courier Ltd. 149

 4. Intangible Injuries 149

Addis v Gramophone Company Limited (1909) 149

Kolan v Solicitor 150

Jarvis v Swan Tours Ltd. 150

(IC) Vorvis v Insurance Corp. of British Columbia 151

 Fidler v Sun Life Assurance Co. of Canada 151

5. Punitive Damages 152

Whiten v Pilot Insurance Co. 152

6. Mitigation of Loss 155

Payzu Limited v Saunders 155

Roth & Co. v Taysen, Townsend & Co. 156

Finelli et at. V Dee et al. 159

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