Introduction 5 A. Remedies for breach 5



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Table of Contents


INTRODUCTION 5

A). REMEDIES FOR BREACH 5

1). INTERESTS PROTECTED 5



GENERAL PRINCIPLES FROM CASES: 6

Bollenback v. Continental Casualty Co. 6

Anglia TV v. Reid 6

Pitcher v. Shoebottom 7

Hawkins v. McGee 7

2). PROBLEMS IN MEASURING DAMAGES 8

Carson v. Willitts 8

Groves v. Wunder 8

Thompson v. Robertson, 1955 8

Charter v. Sullivan, 1957 9

3.) REMOTENESS 9

Hadley v. Baxendale 9

Victoria Laundry v. Newman Industries 10

The Heron II (Koufous v. Czarnikov) 10

Cornwall Gravel v. Purolator 10

Monroe Equipment & Canadian Forest Products 11

Scryup v. Economy Trailer 11

4). INTANGIBLE INJURIES (non-economic loss) 12

Addis v. Gramophone Co. Ltd. [1909] 12

Jarvis v. Swan Tours - loss of enjoyment 13

Newell v. Canadian Pacific Air 13

Vorvis v. Insurance Corp. of B.C.-non-enjoyment losses 14

Wallace v. United Grain Growers 15

Ridiero v. ICBC 15

5). MITIGATION OF LOSS 16

General rules of mitigation: 16

Payzu v. Saunders 16

Roth & co. v. Taysen Towsend 17

White and Carter Council v. McGregor 17

Asamera Oil v. Sea Oil 18

6). SPECIFIC PERFORMANCE 19

GENERAL PRINCIPLES: 19

Falke v. Gray 20

Sky Petroleum v. VIP Petroleum 20

Warner Bros. v. Nelson 20

Page One Records v. Britton 21

7). TIME IN MEASURING DAMAGES 21

Wroth v. Tyler 21

Semelhago v. Paramadevan 22

8). RESTITUTION 22

Deglman v. Guaranty Trust 24

McCamus Article: 25



B). THE KINDS OF PROMISES LEGALLY ENFORCED 25

A). BARGAINS 25

1). PRELIMINARY NEGOTIATIONS 26

Denton v. Great Northern Railway 26

Lefkowitz v. Great Minneapolis 26

Pharmaceutical Society v. Boots 27



General Principles: 27

W.H. Hillas and Co., Ltd. v. Arcos ltd. 27

May & Butcher v. King 28

Foley v. Classique Coaches ltd. 28

Brown v. Gould 28

Empress Towers v. Bank of Nova Scotia 28

2). ACCEPTANCE 29

General Principles: 29

Larkin v. Gardiner 29

Felthouse v. Bindley 29

Wheeler v. Klaholt 30

Eliason v. Henshaw 30

3). CONTRACTS BY CORRESPONDENCE 30

Household Insurance v. Grant 30

4). CONSIDERATION 33

White v. Bluett 34

Hamer v. Sidway 35

Thomas v. Thomas 35

5). MUTUAL PROMISES 35

Great Northern Railway Co. v. Witham 36

Tobias v. Dick and T. Eaton 36

Wood v. Lucy, Lady Duff Gordon 36

6). PRE-EXISTING DUTY/ MODIFICATION CASES 36



GENERAL PRINCIPLES: 36

Harris v. Watson 37

Stilk v. Myrick 37

Smith v. Dawson 37

Raggow v. Scougall and Co. 38

Gilbert Steel Ltd. v. University Construction 38

Williams v. Roffey 39

Foakes v. Beer 39

7). COMPROMISES 40

Cook v. Wright 40

B). INTENTION 41

Balfour v. Balfour 41

3). NON-BARGAIN PROMISES 44

1). PAST CONSIDERATION 44

Lampleigh v. Brathwait 44

Roscorla v. Thomas 45

Pao On v. Lau Yiu Long 45

2). SUBSEQUENT RELIANCE 46

Summary of Principles: Estoppel and Reliance 46

Dalhousie College v. Boutilier Estate 47

Hedley Byrne v. Heller 47

Hughes v. Metropolitan Railway 47

Central London Property Trust v. High Trees 48

Combe v. Combe 48

D & C Builders v. Rees 49

John Burrows v. Subsurface Surveys 49



Tudale Mining Explorations v. TECK 49

Baxter v. Jones 50

D). UNILATERAL CONTRACTS 51

Carlill v. Carbolic Smoke Ball 51

Errington v. Errington 51

Dawson v. Helicopter Exploration 52

CONTRACTS AND THIRD PARTIES 57

1.Third Party Beneficiaries 57



Beswick v. Beswick [Agency] 57

New Zealand Shipping v. Satterthwaite [Agent] 58

London Drugs v. Kuehne & Nagle [Principle Exception to Privity Rule] 58

Frasier River v. Can-Dive 59

2.Mistake of Identity 59



Lewis v. Averay [Fraud = Voidable] 59

3.Documents Mistakenly Signed (Non Est Factum) 59



Marvco Colour Research v. Harris et al. 60

WRITTEN DOCUMENTS 61

1.Unsigned Documents 61



Parker v. South Eastern Railway: 61

McCutcheon v. MacBrayne 61

Thornton v. Shoe Lane Parking 62

2.Signed Documents: 62



Tilden Rent-a-Car v. Clendenning 62

3.Parol Evidence Rule: 62



Federal Commerce v. Tradex [Standard Form K] 63

Prenn v. Simmonds 63

Hawrish v. Bank of Montreal 64

Tilden Rent-a-Car v. Clendenning [Reasonable Notice] 64

Gallen v. Allstate Grain 65

4.Rectification 66



USA v. Motor Trucks 66

PROTECTION OF WEAKER PARTIES 67

1.Minors 67

2.Forfeitures and Penalty Clauses 67

Shatilla v. Feinstein 68

H.F. Clarke Ltd. v. Thermidaire Corp. Ltd. 68

Stockloser v. Johnson [Forfeiture] 68

3.Clauses Excluding/Limiting Liability 69



Karsalis v. Wallis (1956;Eng.CA) [FB] 69

Suisse Atlantique v. N.V. Rotterdamsche (1967;HL) [Eliminates FB] 69

Photo Production v. Securior (1980;HL) 70

Beaufort Realties v. Chomedey Aluminum (1980 few months after Photo; SCC) 70

Securicor (1982;HL) 70

George Mitchell v. Finney Lock Seeds (1983;HL) [Reasonableness] 70

Hunter Engineering v. Syncrude (1989;SCC) 71

4.Unconscionability 71



Lloyds Bank v. Bundy [Bargaining Power] 72

National Westminster v. Morgan [Undue Influence] 73

Macaulay v. Schroeder Music [Restraint of Trade] 74

Unconscionable Transactions Relief Act 74

PUBLIC POLICY 75

Christie v. York (Supp) 75

Ian Ayres: “Fair Driving: Gender and Race Discrimination in Retail Car Negotiations” 75

Farrar v. McPhee (Supp) 75

Jones v. Daly 76

Chrispen v. Topham 76

Quantum meruit: 2 ways to recover 76

Baby M 76

1.Illegality 77



Holman v. Johnson (1775) 77

Archbolds Ltd. v. Spanglett Ltd. (1961) [Performance] 77

Kiriri Cotton v. Dewani [Restitution] 79

PERFORMANCE AND BREACH 80

Cehave N.V. v. Bremer [Intermediate Stip] 81

Hongkong Shipping 81

Panoutsos v. Raymond Hadley Corp. [Waiver] 81

Turney v. Zhilka (1959) [Condition Precedent - Waiver] 82

Barnett v. Harrison 82

Sumpter v. Hedges 82

MISTAKE 84

1.Misrepresentation 84



Heilbut, Symons & Co. v. Buckleton [1913; H.L.] [Collateral K] 85

Bentley Productions v. Smith Motors 85

Esso Petroleum v. Mardon (1976) [Negligent Misrep] 86

Sealand of the Pacific v. McHaffie 86

Murray v. Sperry Rand 87

2.Mistake as to Terms 87



Hobbs v. Esquimalt Railway 87

Raffles v. Wichelhaus 88

Henkel v. Pape [3rd party mistake] 88

Smith v. Hughes 88

3.Mistake in Assumptions 89



Bell v. Lever Bros. 90

Solle v. Butcher [Equity] 90

Maggee v. Pennine Insurance (CA) 90

R. v. Ron Engineering 91

M.J.B. Enterprises v. Defence Construction 91

FRUSTRATION 93

Paradine v. Jane [Rule of Absolute Promises] 93

Taylor v. Caldwell [Relaxes the Rule of Absolute Promises] 93

Krell v. Henry 94

Aluminum Co. of America v. Essex Group 94

Fibrosa v. Fairburn Lawson 95



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