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Terms that derogate- exclusions
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Signature
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L'Estrange
- Pl had not read document, exclusion still incorporated, signature was binding
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Tilden (distinguish)- Canada
- Clause in small font on back of form, apparent to employee that D had not read it, signature rule did not apply
- Signature not binding when result of misrepresentation- Curtis Cleaning
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Notice
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Importance of timing- notice must be given before or at time of contract formation
- Olley v Marborough- hotel, notice denying liability for stolen goods on hotel room door, not seen at time of contract formation, not incorporated
- Thornton v Shoe Lace Parking- as Pl went into car park, received a ticket which attempted to exclude liability for injury, but contract had been concluded before ticket given
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Document containing exclusion must be of a contractual nature
- Chapelton v Barry- deck chairs, ticket contained exclusionary words but was reasonably seen as a "mere receipt" and not a contractual document
- British Crane Hire (distinguish)- hire and transport charges agreed over phone, later Pl sent a printed form (containing exclusion clauses). clauses incorporated as Pl entitled to assume that contract was being made on normal conditions
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whether reasonable steps have been taken to make parties aware
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Parker v South Eastern Railway- exclusion clause on back of ticket limiting liability for lost luggage to £10, not sufficient steps taken to make people aware
- customer not bound if unaware of writing on the ticket? caution with this
- needs to be balanced with Railway's need to keep trains running on economically feasible terms
- arguably favourable to individual
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Thompson v London, Midland and Scottish Railway- back of ticket referred to conditions to be found in timetable, which had to be purchased separately. Exclusion for liability for injury
- Court held Pl had accepted the terms and was bound by them (although obviously reasonable steps not taken)
- Interfoto- onerous clause, delivery note stated £5 holding fee for each day not returned. Held not validly incorporated. Such an onerous clause requires more to be done to make parties aware.
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AEG- faulty goods, Pl claimed cost of returning fault goods was on buyers (condition in an order confirmation note)
- very onerous
- UCTA 1977 provided solution
- held not incorporated but differing reasoning from judges
- LJ HobHouse claimed that as it dealt with matters often the subject of contracts of sale (not unusual), probably not appropriate to hold it unincorporated. Distinguish Interfoto
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By course of dealing
- McCutcheon- D's ferry sank with Pl's car inside. Usually customer sign a risk note, but not on this occasion (and not reliably in the past) Held not incorporated- no consistency in course of dealings
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Terms that supplement-warranties
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Terms or Representations?
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Intention of giving statement
- Heilbut, Symons v Buckleton- Pl bought shares in a company as a result of misrepresentation, not intended to be a warranty
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Subsidiary tests (guides to discover intention)
- Importance of statement
- Bannerman v White- negotiations would not have proceeded without indemnity, so held to be a term of the contract
- whether party is well-placed to give a guarantee
- Oscar Chess- false statement about age of car not. warranty, only representation.
- Dick Bentley- false statement as to mileage of car, held to be a term.
- Denning- distinguish cases- In Oscar Chess, Pl was merely repeating the information in the log book, he had no way of knowing it was wrong. Dick Bentley- Smith was a car dealer who should have known/could have found out the history of the car
- reference to fault inappropriate?
- assumption of responsibility
- Schawel v Reade- buyer of horse told there was no ned to examine it- term of contract
- Ecay v Godfrey- seller not prepared to take responsibility for condition of boat, statements as to its condition not terms of contract
- timing
- Inntrepeneur Pub- statement made just before/at time of contract more likely to be term. Also where the parties have drawn up a written contract, and made no reference in it to an earlier statement, there is a presumption that it is not intended to have contractual effect
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Incorporation of Conflicting Terms
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Parol Evidence Rule- presumption that written contract is entire agreement. Jacobs v Batavia
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Easily rebutted
- Couchman v Hill- oral assurance cow was unserved overrode disclaimer in catalogue
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Collateral contracts- where there are conflicting terms, situation can sometimes be interpreted as 2 different contracts
- City and Westminster Properties- Tenant was told that if he entered into a new lease the landlord would not enforce the written terms of the lease. Assurance created a collateral contract
- J Evans- oral assurance that goods would be kept below deck (written contract gave discretion). assurance held to constitute collateral contract
- Esso
- More onerous terms require clearer notice/more steps to be taken