Summary of the rules discussed in Commercial Law

This is my attempt to list down as many of the rules we have discussed in class as I can. If you think I have left our anything, please let me know. You need to find the cases and or legislation that supports each rule. This can be found in the textbooks.

Formation

Rule that an offer can be made to the world at large ie unilateral offers are valid offers.

Rule that an offer is distinguished from an Invitation to Treat by the intention of the maker.

Rule that offers can be revoked anytime before acceptance as long as it is communicated

Rule that an offer will lapse upon rejection or a counter offer

Rule that acceptance of an offer cannot be qualified.

Rule that the person accepting must have knowledge of the offer

Rule that the acceptance must be communicated

Rule that Past Consideration is not good consideration

Rule that Consideration must move from the promisee

Rule that Consideration must be sufficient but not adequate

Rule Pinnels Case or Foakes v Beer

Rule in High Trees v Central London Properties (Promissory Estoppel)

Rule that in domestic or social agreement there is a presumption of lack of intention to contract

Terms of Contract

Parol Evidence Rule

Rule on business efficacy in determining how the common law implies terms into the agreement

Statutory Implied term on the rights to sell (s12)

Statutory implied term that goods matches its description (s13)

Statutory Implied Terms that goods sold must be satisfactory quality (S14(2))

Statutory Implied Terms that goods sold must be fit for its intended purpose (S14(3))

Statutory Implied Terms that goods must correspond with its sample (S15)

Rule on Warranties, Innominate Terms and Conditions

Rule on the incorporation of exclusion clauses

Rules in the UCTA limiting the rights to exclude liabilities under the SGA

Vitiating Factors

Rule on necessary goods for minors

Rule on restraint if trade

Rule on Misrepresentation – false statement of fact inducing a contract

Rule on Fraudulent, Negligent & Innocent Misrepresentation

Rule on Common Mistake

Rule on Mutual Mistake

Rule on Unilateral mistake

Rule on Economic Duress

Rule on Undue Influence

Rule on Unconscionable Conduct

Discharge

Rule on the doctrine of precise performance and its exceptions

Rule on anticipatory and actual breaches

Rule on existing and subsequent agreements on discharge

Rule on Frustrations

Common Law & Statutory Rules on the effect of Frustrations

Damages

The Restitio In Integrum rule in awarding damages

Rule on causation of damage

Rule on Remoteness of damages (Rule in Hadley v Baxendale)

Rule on Mitigation

Rule on awarding non pecuniary losses in contract

Rule on Penalty Clauses and Liquidated Damage Clause

Rule on expectation loss and reliance loss

Agency

Rules on creation of agencies

Rule on Implied Authorities and Ostensible Authorities of Agents

Rules on Duties of Agents

Rule on undisclosed principals

Negligence

Rule on when a Duty of Care is owed

Rule on Duty of Care in Negligent Statements

Rule on Duty of Care in Nervous Shock cases

Rule on Breach of Duty of Care or the Standard of Care

Rule on Causation in fact and law

Rules on Damages in Tort – Special and General Damages

Rules on the defece of Volenti Non Fit Injuria

Rule on Contributory Negligence

It is important that for each of the above rule – you will have an authority either in the form of a case of in the form of a statutory rule to support each of the rule that you intend to use.

For every question in an exam, the question will raise an issue which a legal rule may be used to help answer the question. You need to identify that issue, discuss the legal rule and apply it to the issue.