Index

Abstraction

principle, of, 27–31, 286

Acceptance battle of forms

conflicting terms, 80, 81 counteroffers, 79 defensive clauses, 79 retention of title, 80 trade custom, 80, 81

communication completeness, 73 factual contracts, 74, 75 implied acceptance, 75 intention, and, 74 rules, governing, 73, 74

competition rules, 71 confirmation letters

see Confirmation letters consumer protection, 70 damages, liability for, 71 declaration of intention, 26, 27

and see Declaration of intention discord, 72

dissent, 72

failed contracts, 100 freedom of contract, and, 70

and see Freedom of contract immediate acceptance, 63 implied acceptance, 75 intention, and, 73

and see Intention method, of, 63

mistaken transactions, 72 notice, of, 63

obligational relationship, and, 28 pre-contract

estoppel, 78 formalities, 78 letters of intent, 78

misrepresentations, 78 nature, of, 78

public utilities, 71 rules, governing, 70 silence, as, 75, 76, 79 unreserved, 71 unsolicited goods, 70 waiver, 75

Agency

abuse of rights, 124 authority

apparent, 112, 113 commercial authority, 114

contractual relationships, and, 112 extent, of, 113, 114

general authority, 110 implied, 113

lack, of, 114–116 limits, on, 110, 114

pretended authority, 110, 113 provisions, governing, 111, 112 ratification, 115

representation, 112 revocation, 116 termination, 116–117 third parties, and, 112 tolerated, 113

commission agents, 117–118 creditors, 110, 111

culpa in contrahendo, 104–106 and see Culpa in contrahendo

false statements, 306

falsus procurator, 94, 97, 115 financial interest, 106–108 fraud, and, 306, 307

further reading, 109 good faith, 114 liability, 104, 106

and see Liability meaning, 109 minors, and, 231

and see Minors misleading information, 105 relationship, 109 representation, 110, 112, 117 special factors

expertise, 105 knowledge, 105 reliance, 104

transfer of title, 110, 111 transferred loss, and, 223 and see Transferred loss

undisclosed principal, 110, 111, 117

Autonomy

contracts of transfer, 36

and see Contracts of transfer freedom of contract, 26, 45, 47 and see Freedom of contract

legal transactions, and, 27

Breach of contract

anticipatory breach, 422, 430, 431 breach of duty, 379, 380, 387, 389 contract for work, 522

and see Contract for work culpa in contrahendo, and, 383 definition, of, 389

efficient breach, 399 fault, existence of, 381

foundation of the transaction, and, 381 and see Foundation of the transaction

fundamental, 389, 422, 426 good faith, and, 124, 125

and see Good faith liability

contractual, 381

damages, 379, 380, 388, 389, 390 defence, against, 387

exclusion, of, 388, 390

fault principle, and, 380, 390 force majeure, 390 standard, of, 389

objective nature, 421

usury, and, 250, 254 and see Usury

Capacity

mental incapacity, 229, 230, 238–240 and see Mental incapacity

minors

see Minors partial capacity, 231 rules

age distinctions, 229, 230 family law rules, 230

mental incapacity, 229, 230, 238 protection, afforded by, 231, 235 representational rules, 230

Carriage of goods carriage by sea

bills of lading, 221–223 contractual remedies, 221, 223 contractual rights, 223 damages, recovery of, 220, 221 statutory provisions, 223 third party loss, 222

tort claims, 222 liability, 196, 197

rules, governing, 196, 197 third party rights, 196

and see Third parties

Civil codes influence, of, 4

Civil procedure emergence, of, 11

Coercion

declaration of will, and, 314, 315 effect, of, 314, 315

elements, 315–316 further reading, 314

illegitimate pressure, 315, 317 nature, of, 315

provisions, governing, 314, 315 recission, and, 315

and see Recission threats

criminal behaviour, 317 definition, of, 315, 316 dismissal of employee, 318

illegitimate threats, 315, 316–318 means/ends, 317

negligence, and, 316 vis absoluta, 314

vis compulsiva, 315

Commercial Code agency, under, 111

and see Agency

Comparative approach basic principles, 2

constitutional principle, 3, 39 consumerism, 5

consumer protection, 2, 3 contractual freedom, 2

see also Freedom of contract contractual theorising, 5, 6 international influences, 5 judicial decisions, 3, 4, 19 legal systems, 16

national concepts, 5

parties, relative strengths, 2, 3, 39, 40 political power, 2, 3

pragmatism, 19 presentation methods, 5

principle, attachment to, 18, 19 social power, 2, 3 socio/economic environment, 4 socio/political realities, 2 statutory intervention, 3, 4 terminology, 5

Competition rules

see EC Competition rules

Confirmation letters acceptance, and, 76, 77

and see Acceptance comparative approach, 77 new terms, and, 77

use, of, 77

Constitutionalisation

constitutional values, 37, 38, 39, 47 direct effect, 37

free speech, 37 general clauses, 38, 39

human rights, 37, 38, 42 privacy, 37 quasi-constitutional values, 41

Consumer rights

see also Consumer sales approval sales, 267 cancellation

breach of contract, and, 272 cancellation period, 266–268, 270–272 consequences, of, 272

consumer credit, 268, 271, 276 contracting parties, 271 contractual invalidity, 272 culpa in contrahendo, 272 declaration of intention, as, 272 delivery by instalment, 276 distance contracts, 266, 267, 275

doorstep transactions, 273, 274, 305 dual use contracts, 271

duty to inform, 268, 269, 275 employment contracts, 274 fraud, and, 269

insurance contracts, 276 national remedies, 273 notice, of, 271, 272 procedural defects, 266–268 procedural standard, 267

provisions, governing, 270, 273 restitution, and, 270, 272, 273 restrictions, on, 267

right, of, 270–273 self-determination, 267 special rules, 270, 271 termination of contract, 272 third party involvement, 274 timeshares, 275

unjust enrichment, 272 development, of, 265

distance contracts, 266, 267, 275

EC legislation, 265, 266, 268–270, 275, 515–518

free movement of goods, 270 further reading, 264–265 legislation, 265

rights cancellation, 266

withdrawal, 266, 275

sale techniques, 266, 267, 273 terminology

cancellation, 265 withdrawal, 265

nature, of, 153 obligations, under, 153 performance

enforced performance, 529–530 impossibility, 530 non-conforming performance, 530

remuneration, 153

rules, governing, 145, 146, 153, 528, 529 termination

effect, of, 154, 530 entitlement, 530 notification, 530, 531 time limits, 531

Contract for work application, 156 compensation, 157 conformity

defective work, 524 definition, 524 legal defects, 524

construction contracts, 156

contract for sale, distinguished, 153, 156 and see Contract for sale

contractor’s rights, 522 contractual principles

breach of contract, 522 contractual requirements, 522 damages, right to, 522 impossibility, 522 repudiation, 522, 523 termination, 522, 523

damages, right to, 522, 525, 527 defective work, 521, 524

enforced performance, 522, 524–526 and see Enforced performance

further reading, 520 latent defects, 527

non-conforming performance, 521, 522, 525 obligations, under, 155, 156

performance impossibility, 525

performance interest, 525 period for performance, 525 primary rights, 525

provisions, governing, 156, 524–527 rejection, 525

secondary rights, 525

subsequent performance, 524, 525, 526, 527

substantial performance, 525 ultimate failure, 527

and see Performance possessory lien, 157 prescription periods, 521 price reduction, 525, 526

provisions, governing, 521, 522 reinstatement cost, 525, 526 remedies, 156, 521, 522, 524–527

and see Remedies remuneration, 156, 522 result-based, 155 sub-contractors, 527

termination, 157, 522, 523, 525, 526 vicarious liability, 527

Contract of obligations motivation, 29 nature, of, 27, 28

unjust enrichment, 29, 30 validity, 29, 30

void contracts, 29

INDEX 961

Contract of transfer chattels, 34, 35

judicial influence, 36, 37 land transfers, 34, 35, 36 nature, of, 27, 28 obligation, 29

personal autonomy, 36 proprietary interests, 28, 35, 36 public transfer, 35

rights

alteration, of, 34 transfer, of, 34

specification goods, 34 rights, 34 validity, 30

Contractual terms see Terms

Culpa in contrahendo agency, and, 104–106

and see Agency

consumer contracts, and, 272 see also Consumer rights

doctrine, of, 56, 58 duty of care, 95, 96, 97 failed contracts

acceptance, and, 100 agreement, and, 100 economic conditions, 101 formalities, 100

freedom of contract, 99, 100, 101 negotiations, 100, 101

fault, and, 91–99 and see Fault

liability

see Liability

misrepresentation, 105, 108, 311–314 and see Misrepresentation

obligation, and, 56, 58 un-concluded contracts, 97–100 unfavourable contracts, 97, 98 unfavourable terms, 97–99

Damages assessment

damage to property, 483–486 expectation interest, 479–482 personal injury, 482–483 restitution, and, 479

rules, governing, 479 breach of contract, and, 438

and see Breach of contract comparative approach, 438 contract for services

breach of duty, 532 delay, for, 531 entitlement, to, 531, 532 interest payments, 532

non-conforming performance, 533 standard of care, 532, 533

and see Contract for services delay

conditions, for, 464–465 consequences, 466–469 debtor’s delay, 464, 466

duty of performance, and, 467 fault principle, and, 464 interest payments, 468

loss caused, by, 466, 467 money debts, 468

962 INDEX

Damages (cont.): delay (cont.):

penalty payments, 468

performance, in, 439, 441, 442, 453, 464 simple damages, and 467

warnings, as to, 464–467

enforced performance, and, 398, 399, 400, 402, 441, 442, 446

and see Enforced performance expectation interest, 442, 446, 451 expenditure

pre-contractual, 443 recovery of, 441

wasted expenditure, 442, 443, 460–464 see also Wasted expenditure

fault principle, and, 438, 439, 444 and see Fault principle

further reading, 437–438 impossibility

effect, of, 439, 441, 455, 456 initial impossibility, 456–459 subsequent impossibility, 456, 458

irregular performance delay, 439, 441, 442, 453

impossibility, 439, 441, 455, 456, 458 liability, 439, 440, 441

positive breach, 439 liability

ancilliary duties, 441

breach of duty, 439, 440, 441 conditions, of, 458

culpa in contrahendo, 439 fault principle, 439, 444, 472

period for performance, 439, 453 purposive approach, 474

simple damages, 469 limitation

see Limitation of damages mitigation

see Mitigation of damages monetary compensation, 441, 442, 443 nature, of, 441, 443, 480

penalty clauses, 444 performance

counter-performance, 454–455 delay, in, 439, 441, 442, 453 failure, of, 442

impossibility, 455–459, 470

in lieu, of, 441, 442, 451, 454, 455, 459, 467, 470, 503

late performance, 451–455 non-conforming performance, 454 partial performance, 454

period for performance, 466 period of grace, 466 protective duties, 459–460, 471 reliance, on, 443

simple damages, 441, 453, 464, 469 ultimate failure, 452–453 warnings, as to, 464–467

and see Performance personality rights, 9 provisions, governing, 438 punitive damages, 443, 444 purpose, of, 480 quantification, 9

reliance loss, 441, 442

rent contracts, 535, 536, 539, 540 and see Rent contracts

restitution, and, 443

restoration, 441 sale of goods

consequential loss, 512 consumer sales, 517 defective goods, 512, 513 delay, 511, 512 entitlement, 510, 511

expectation interest, 510, 511 latent defects, 512

liability, for, 511, 512 non-conforming performance,

510–512 performance in lieu, 511

period of performance, 511 simple damages, 511, 512 special warnings, 512 strict liability, 513

subsequent performance, 511 vicarious liability, 513 wasted expenditure, 511

and see Sale of goods simple damages

delay, and, 467 expectation interest, 470 integrity, interest in, 471 liability, 469, 489

performance, and, 441, 453, 464, 489 protective duties, 471

reliance interest, 469 sale of goods, 511, 512

theoretical explanations, 469, 470 termination, and, 420, 421

and see Termination types, of, 441

wasted expenditure

see Wasted expenditure

Debt payments

see also Performance assumption of debt, 367 authorisation, 366

comparative approach, 371–373 contracts of guarantee, 367, 368 contribution, right of, 368 creditor’s consent, 366

liability insurance, 370, 371 ownership

expectancy, of, 370 transfer, of, 370

payment orders, 368, 369, 370 privity of contract, 369

and see Privity of contract restitution, and, 366, 367, 368, 371 rules, governing, 366, 367, 370 several liability, 368

subrogation, 372, 373 third parties, 366, 367

unjust enrichment, 368, 371, 372

Deception

see also Misrepresentation declaration theory, 303

duty of disclosure, 305, 306, 307 effect, of, 302, 303

employment contracts, 304, 305 false statements, 305, 306, 308 fraudulent behaviour, 305 imputation, 305

induced error, 303 meaning, of, 303 negligent deception, 311

provisions, governing, 303, 304

recission, and, 302, 303, 305, 307 and see Recission

right to lie, 304, 305

third parties, and, 305, 306 unlawful, 304

wilful deceit, 305 will theory, and, 303

withholding information, 305–307

Declaration of intention see also Intention acceptance, and, 26, 27

and see Acceptance addressees, 67, 68, 69, 70

Bürgerliches Gesetzbuch) (BGB), 67, 69, 70 and see Bürgerliches Gesetzbuch) (BGB)

inter absentes, 69 interpretation, of, 134, 135 loans, relating to, 152

and see Loans meaning, 25, 26, 27 minors, and, 233

and see Minors

offer, and, 26, 27, 57, 58, 59, 67 and see Offer

offer of reward, 68 oral declarations, 70 rules, governing, 67 transmission, of, 67

Default rules application, 168 benefit, of, 164 effect, of, 163, 178

formation of contract, 60, 61 and see Formation of contract

standard terms, and, 164, 168 and see Standard terms

Disclosure

see Duty to disclose

Donation

see also Gifts consideration, 148 formal requirements, 148

gratuitous transactions, 148, 149 instantaneous donation, 148 liability, 148

prior promises, 148 re-claiming, 148 revocation, 148 spouses, involving, 149 unjust enrichment, 148

Duty to disclose

see also Misrepresentation authorisation, absence of, 308 business relationships, and, 310 company sales, and, 308 deception

see Deception exceptions, 307

extent, of, 305, 306, 308 financial information, 310 good faith, and, 307, 309

important information, 307, 308, 309 nature, of, 306

physical defects, 307, 308

relevant information, 307, 308, 309 trust, relationships involving, 309, 310

EC Competition rules

Article 81, effect of, 41 breaches, of, 41

INDEX 963

interpretation, of, 244

EC law

see also European law competition rules, 41 consumer credit, 15, 51

consumer protection, 15, 51, 52, 53, 62, 515–518 see also Consumer sales

direct effect, 41 e.commerce, 15

harmonisation, 15, 16, 32, 52 insurance law, 15

see also Insurance contracts late payments, 15

package travel, 15, 51

see also Travel contracts sale of goods, 503–506

and see Sale of goods supremacy, of, 41 unfair terms, 15, 47

Economic loss

construction contracts, 209

duty of care, 209, 211, 213, 214, 216 good faith, and, 213

harm

pecuniary interests, 209 protected interests, 209 implied term reasoning, 213

judicial control, 212 liability

agency, involving, 107, 108 extra-contractual, 213 fault, and, 93, 94, 96–99 imposition, of, 213–216 indeterminate, 209–212

negligence liability, for, 208

negligent certifications, 209–211, 213 negligent misstatement, 211, 212 negligent performance, 212

non-performance, 208 pre-contractual representations, 211 privity of contract, and, 209

and see Privity of contract recovery, of, 208, 209, 215 relevant interest, 213 sub-contractors, 209

third party protection, 204, 208, 209 and see Third party protection

timely performance, 208 transferred loss, 217

and see Transferred loss

Employers’ liability fault, and, 9

see also Fault principle

Employment contracts

see also Contract for work duration, 154

EC legislation, 155 labour contracts, 153–155 obligation

employees, 153 employers, 153 regulation, of, 153

remuneration, 153, 154 termination, 154 worker, definition of, 155

Enforced performance see also Performance

commercial considerations, 399 comparative approach, 393, 397, 398

964 INDEX

Enforced performance (cont.): contract for work, and, 524–526

and see Contract for work

damages, and, 398, 399, 400, 402, 441, 442, 446 and see Damages

discretionary nature, 392

duty of performance, and, 408–409, 413, 415, 417

enforcement in specie, 398 enforcement methods

costs, and, 404 court orders, 405

declaration of will, 405, 406 fines, 405

imprisonment, 405 injunctions, 405

monetary obligations, 403, 404, 406 non-monetary obligations, 403, 404, 405 personal performance, and, 404, 405 procedural remedy, 403

procedural rules, 403, 404 sequestration, 403

vicarious performance, 404, 405, 406 equitable origins, 392

fault principle, and, 400, 402 and see Fault principle

further reading, 392 goods

generic goods, 417

specific goods, 415, 416, 417 impossibility

common mistake, and, 407 consequences, of, 407, 408 contract for work, 415, 417

counter-performance, and, 409–411, 414 defence, as, 406, 407, 413, 418

delay, and, 411, 412

duty of performance, 408–409, 413, 415, 417 economic impossibility, 413

initial impossibility, 415 liability, and, 413, 414, 415 moral impossibility, 418 practical impossibility, 413, 414

responsibility, for, 406, 407, 408, 416 sale of goods, 415, 416, 417 subjective impossibility, 415, 416 subsequent impossibility, 415 surrogate claims, 407

termination, and, 407 international instruments, and, 398 limitations, 406

meaning, of, 398

pacta sunt servanda, and, 399, 416 partial non-performance, 398 performance

commercial considerations, 399 delay, 401, 402, 411, 412 disproportionate outlay, 414, 415 impossibility, 401, 406, 407, 408 late performance, 401, 402

non-conforming performance, 400, 417 performance in specie, 399, 400, 404, 410, 413 performance interest, 416, 418

period of grace, 400, 401, 402 period of performance, 400, 401 personal performance, 404 primary duty, 399, 400

primary right, 398, 399, 400 refusal, 401, 412, 431 repudiation, 401

request, for, 400–403 secondary rights, 398, 400, 401 substitutes, for, 398, 400 termination, and, 400, 401 undue burden, 418

vicarious performance, 404, 405, 406 and see Performance

primary remedy, as, 399 provisions, governing, 398, 400 purpose, of, 479, 480

rent contracts, 538

and see Rent contracts sale of goods

comparative approach, 504 disproportionate outlay, 506 EC legislation, 503–506 generic goods, 505 impossibility, 506

legal defects, 505

non-conforming performance, 502, 503 period of grace, 507

period of performance, 502, 503, 505 physical defects, 504, 505 prevalence, of, 506

purpose, of, 514

qualitative late performance, 506 repair, and, 504, 505

right, to, 502, 503

subsequent performance, 502, 506, 507, 513 substituted goods, 505, 506, 507

significance, of, 399 specific performance

see Specific performance

English law

agency, 109, 110, 112, 113, 116, 306, 307 and see Agency

bailment, 160 bargaining power, 41

breach of confidence, 42, 43, 96 breach of contract, 422, 423, 424, 431 capacity, 32, 229, 230, 238, 240

and see Capacity certainty, 135, 136, 137 collateral duties, 126, 127 competition rules, 41 compromise, in, 4 conditions, 424, 425 confidential information, 43 consensus, in, 4

consideration, 87, 88, 89, 181, 182 consumer rights, 52, 268, 269

and see Consumer rights contractual agreement, 55 contributory negligence, 478 conversion, 32

corporate liability, 105, 106, 108 damages, 468

and see Damages detrimental reliance, 55, 79 duress, 89, 316, 318

employment contracts, 50, 51, 61, 529 estoppel, 78, 79, 86, 89, 102, 123, 124 fiduciary relationships, 309

freedom of contract, 49

and see Freedom of contract frustration of contract

legislative provisions, 334, 335 performance, and, 319 restitution, 333

statutory intervention, 334, 335

966 INDEX

Fault (cont.):

further reading, 91–92 liability

damages, 93, 94, 95, 97, 472 delict, and, 96, 97 economic loss, 93, 94, 96, 97 fault-based, 93, 94, 95 mistake, and, 94, 97, 99 negligence, and, 95 negligent misstatement, 103 pre-contractual, 92, 93, 96 protection of interests, 93 protective duties, 93, 95, 96 strict liability, 94, 95

nature, of, 92, 93 reliance loss, 93–96

Fault principle application, 445, 457

breach of contract, and, 380 and see Breach of contract

burden of proof, 446, 447 conduct

intentional, 444, 446, 451 negligent, 444, 446, 447, 451

damages, and, 438, 439, 444, 464, 472 and see Damages

duty of care, 447 elements, 446–447 employers’ liability, 9

enforced performance, and, 400, 404 and see Enforced performance

fairness, and, 445 frustration, and, 445 liability

breach of contract, 445 financial difficulties, 448, 449 generic goods, and, 449 presumed fault, 446 qualified fault, 451

strict liability, 445–450 vicarious liability, 450

mistake

mistake of fact, 447 mistake of law, 447 and see Mistake

performance, and, 421, 447, 449 and see Performance

provisions, governing, 444, 446 rent contracts, 536

and see Rent contracts sale of goods, 445

and see Sale of goods standard of care

changes, to, 446 comparative approach, 450

contractual terms, and, 449, 451 debtor in default, 449, 450 exclusion clauses, 451

financial difficulties, 448, 449 negligence, and, 447 objective standard, 447, 448 qualified fault, 451 reasonable, 445

reduction, in, 451

strict liability, 448, 449, 450 vicarious liability, 450 vicarious performance, 448

strict liability, 445–450 termination, and, 420 and see Termination

Formalities

abuse of rights, 85 agency contracts, 82 compliance, 100 contractual liability

criteria, for, 90 existence, of, 90 incorrect statements, 91

judicial interpretation, 90, 91 negligent misstatement, 91

defects, 84, 85 estoppel, and, 86 failed contracts, 100 flexibility, 89, 90 form

electronic form, 82 freedom of form, 81 textual form, 82 written form, 82, 88

further reading, 81

gifts, involving, 87, 88, 89 and see Gifts

good faith, 85, 86 legal advice, 84 notaries

authentication, 83, 84 certification, 83 duties, 83

nullity, 85

policy considerations, 84 requirements, 83 seriousness

see Seriousness signature, 82

surprise, protection from, 81, 82 transactions

dangerous transactions, 84, 88 subject, to, 83

undue influence, and, 83 validity, and, 84, 85

and see Validity

Formation of contract agreement

consensus ad idem, 55 intention, 56 presence, of, 55

content

auxiliary terms, 60 completeness, 59, 60 default rules, 60, 61 definiteness, 59, 60 necessary requirements, 59 performance issues, 59 price considerations, 59 remuneration, 59, 60

inter absentes, 19 negotiation, 58

pre-contractual obligations, 58, 59 promise, and, 55

third parties, and, 56 and see Third parties

Foundation of the transaction breach of contract, and, 381

and see Breach of contract changing circumstances

common mistake, 325, 326, 346 economic impossibility, 326, 327, 328 frustration of purpose, 325, 326, 342 judicial interpretation, 324, 326

performance/counter-performance, 325, 326

provisions, governing, 323, 324 ruination defence, 327, 328 subsequent impossibility, 326, 327

common mistake adjustment, and, 347

changing circumstances, 325, 326, 346 effect, of, 346–348

compromise, 324 contractual risk, 321, 323 counter-performance, 324 disturbance, 325

doctrine

economic influences, 327, 329, 330, 331 judicial intervention, 329–333

origins, of, 326–336 outline, of, 319

political influences, 328–330 statutory intervention, 330

financial position, 324 frustration

adjustment, and, 343, 344, 346

changing circumstances, and, 325, 326, 344 comparative approach, 333, 342

debtors, 342

equitable approach, 345 judicial interpretation, 343–345 pacta sunt servanda, 345 provisions, governing, 319, 323 risk allocation, 343–346

good faith, 324 illegality, 319, 323 impossibility

contract discharged, 328 economic, 326–328 generic goods, 326, 327

provisions, governing, 319, 323 ruination defence, 327, 328 subsequent, 326, 327

judicial interpretation, 324 judicial intervention, 329–333 objective foundation, 324, 325 pacta sunt servanda, and, 325 performance

adjustment, 336–342

changing circumstances, 325, 326 equivalent value, 345

good faith, and, 338, 340 fairness, and, 336

performance/counter-performance, 325, 326, 338, 339

serious disruption, 337 significance, of, 319, 320

subject matter, substitution of, 339, 340 termination of contract, 340

and see Performance

provisions, governing, 319, 323, 324 risk allocation, 321, 323, 324, 325 significance, of, 319

statutory basis, 324 statutory reform, 324

subjective foundation, 324, 325 theoretical issues

assumed circumstances, 322 changing circumstances, 321 contract values, 320 fairness, 320

further reading, 320 future events, 322

intended legal consequences, 321 pacta sunt servanda, 320

INDEX 967

Pandectist theory, 321 performance of contract, 320 presuppositions, 321

theoretical explanations, 320–323 unaltered circumstances, 321 unilateral motive, 321

Fragmentation contract law, 4 European law, 16

Franchising

rules, governing, 163

Freedom of contract acceptance, and, 70

and see Acceptance autonomy, and, 26 bargaining power, and, 47 capacity, and, 45

and see Capacity constitutional influences, 44 constitutional values, 47 consumer legislation, 51, 52, 53 culpa in contrahendo, and, 99–101

and see Culpa in contrahendo default rules, 46

emergence, of, 44 exclusion clauses, 47 further reading, 43–44 historical background, 44 human rights, and, 47 importance, of, 44 judicial intervention, 46, 7 “just” price, and, 45 limits, on, 4

personal autonomy, and, 45, 47 political theory, and, 44 restraints

employment contracts, 50, 51 extent, of, 53

human rights, 47 initial position, 45–46 leases, 48, 49, 50, 53

modern constraints, 46–53 regulated contracts, 48 unfair terms, 47

restrictions, on, 44

standard terms, and, 46, 47, 53, 165, 178 and see Standard terms

statutory intervention, 45, 46 unfair terms, 47

French Civil Code

Bürgerliches Gesetzbuch) (BGB), contrasted, 16, 18, 19, 21

and see Bürgerliches Gesetzbuch) (BGB) codification process, 17

contract provisions, 19 criticisms, of, 18, 19 drafting, of, 17, 18

German attitudes, towards, 16, 17, 18 influence, of, 7

laesio enormis, 45 Napoleon, influence of, 17 political implications, 18

principle, attachment to, 18, 19 sociological document, as, 17

French law

see also French Civil Code contractual agreement, 55 insurance contracts, 185 third party rights, 185, 200 and see Third parties

968 INDEX

Frustration of contract adjustment, and, 343, 344, 346

changing circumstances, and, 325, 326, 344 comparative approach, 333, 342

debtors, 342

equitable approach, 345 judicial interpretation, 343–345 legislative provisions, 334, 335 pacta sunt servanda, 345 performance, and, 319 provisions, governing, 319, 323 restitution, 333

risk allocation, 343–346 socio-economic influences, 121, 122 statutory intervention, 334, 335

German Civil Code (Bürgerliches Gesetzbuch) (BGB)

see Bürgerliches Gesetzbuch) (BGB)

German Constitution constitutional values, 37, 38, 39 freedom of contract, 47

and see Freedom of contract good faith, 38, 39

horizontal effect, 37 human rights, 37, 38

and see Human rights private law disputes, 38 public policy, 38, 39

and see Public policy rechtsstaatsprinzip, 40

German legal history cultural identity, 8 influences

academic, 12 jurisprudential theory, 14 Pandectists, 8–11, 55, 56 Savigny, 8, 11

Thibaut, 8

ius commune, 10, 11 judicial powers, 7 jurisprudential theory concepts, of, 12, 13 deductive logic, 13 influence, of, 14

legal reasoning, 13 mergence, of, 12 values, 13

natural law, 7

Prussian Land Law (1794), 7 publications, on, 6

religious wars, 7 Roman law, and, 8, 9

and see Roman law unification

economic union, 11 Imperial Court, and, 6 legal unification, 11, 12 political union, 11 process, of, 6, 7

Gifts

formalities, 87–89 and see Formalities

third parties, and, 190, 191

Good faith abuse of rights

agency, and, 124 contradictory behaviour, 123 debtors, 125

fairness, and, 124

judicial intervention, 124, 130 lapse of time, 123 motivation, and, 124 performance interest, 124 reliance interest, 123, 124

breach of contract, and, 124, 125 and see Breach of contract

collateral obligations default rules, 131

disclosure of information, 129, 130 duty of care, 126

insecurity, involving, 128

judicial intervention, 125, 126, 128, 130 parties’ intentions, 128

performance obligations, 127, 128, 129 protective duty, 126

protective obligations, 126, 127, 128 provisions, governing, 126

see also Obligations constitutional values, 131, 132 EC legislation, 132

express terms modification, 131 policing, of, 130, 131 see also Terms

fairness, and, 131 formalities, and, 85, 86

and see Formalities frustration of contract, and, 131 further reading, 119–120 human rights, and, 132

and see Human rights importance, of, 120, 126 influence, of, 122, 123 interpretation, 126 liability, and, 99

and see Liability mistake, and, 283, 284 and see Mistake

provisions, governing, 120, 121 rights

abuse, 123–125 collateral duties, 123, 125

enforcement, 123, 124, 128, 130 exercise, of, 123

extinction, of, 123 forbearance, and, 123

standard terms, 131, 164, 165, 177 and see Standard terms

Harmonisation see also EC law

importance, of, 15, 16, 52 standard terms, and, 167, 168

and see Standard terms

Human rights

employment issues, 132, 133 freedom of contract, and, 47

and see Freedom of contract good faith, and, 132

Human Rights Act (1998), 132 personality, right of, 132 private law, and, 37, 39, 42

and see Private law public policy, and, 249 purpose, of, 37

Illegality

contractual justice, and, 241 further reading, 240

rules, governing, 240 statutory prohibitions

application, 245–247 contractual obligation, 245 contractual purpose, 245, 246 effect, of, 240

evasive legal transactions, 246, 247 general principles, 242–245 interpretation, of, 242, 243, 244 labour contracts, 244

language, use of, 243 “sham” transactions, 247 significance, of, 240 statutory purpose, 243–246 strict law, distinguished, 241 subjective element, 244, 245 validity, and, 241

strict law, and, 241

Impossibility

see also Performance

breach of contract, and, 380, 387, 388, 429, 430 see also Breach of contract

common mistake, and, 407 contract for services, 530 contract for work, 522, 525 damages, and, 455–459, 470

see also Damages

defence, as, 406, 407, 413, 418

duty to perform, 9, 357, 421 429, 430 economic impossibility, 413

effect, of, 439, 441, 455, 456 enforced performance

see Enforced performance initial impossibility, 415 456–459 moral impossibility, 418 practical impossibility, 413, 414 rent contracts, 536, 537

sale of goods, 415, 416, 417, 509 subjective impossibility, 415, 416 subsequent impossibility, 415, 456, 458

Insolvency law emergence, of, 11 insolvent estates, 195

Insurance contracts beneficiaries

expectancy, of, 201 nomination, of, 195 irrevocable rights, 201

consumer rights, and, 276 and see Consumer rights inheritance provisions, 195

insolvent estates, 195 insurable interests, 196

privity of contract, 185, 194–196 and see Privity of contract

rules, governing, 194, 195 third parties, and, 194–196, 201

and see Third parties

UK legislation, 196

Intention

Bürgerliches Gesetzbuch) (BGB), and, 67, 69, 70 and see Bürgerliches Gesetzbuch) (BGB)

declaration, of, 25, 26, 27, 57, 58, 59, 134, 135 see also Declaration of intention

good faith, and, 128 and see Good faith

hypothetical intention, 141 letters of intent, 78

offer, and, 57, 58, 59 parties

INDEX 969

actual intention, 139, 141 comparative approach, 135–138 contract wording, 137, 138 declaration of intention, 134, 135 formation of contract, 56, 57 hypothetical intention, 139, 141 interpretation, of, 139

judicial interpretation, 134 legal relations, 135

shared intention, 133 subjective intention, 133 transferred loss, and, 219 true intention, 134, 135 and see Parties

presumed intention, 73 reasonable intentions, 141 seriousness, 87–91

and see Seriousness

Leases

see also Rent contracts chattels, 151

lessee’s rights, 536 operating leases, 151 private accommodation, 150 quiet enjoyment, 536

repair covenants, 535, 540 residential, 150

rules, governing, 163 termination, 150, 151

Legal transactions abstraction principle, 27–31 contract, as, 25–27 disposition contracts, 27 freedom of contract, 45

and see Freedom of contract obligation relationships, 27, 29 separation principle, 27, 29, 31, 33 specification

goods, 34 rights, 34 validity, 45

Liability

comparative approach, 98 contractual liability

criteria, for, 90 existence, of, 90 incorrect statements, 91

judicial interpretation, 90, 91 negligent misstatement, 91, 103

corporate liability, 106, 107, 108 damages, 93, 94, 95, 97, 108 delict, and, 96, 97

economic loss, 93, 94, 96–99, 107, 108, 209 falsus procurator, 94, 97

fault-based, 93, 94, 95 good faith, and, 99 intermediaries, 98, 103–108 mistake, and, 94, 97, 99 negligence, and, 95, 99

negligent misstatement, 91, 103 pre-contractual, 92, 93, 96, 97, 100 protection of interests, 93 protective duties, 93, 95, 96 reliance loss, 93–96, 99, 108

strict liability, 94, 95 vicarious liability, 106

Limitation of damages see also Damages

contributory negligence, 472

970 INDEX

Limitation of damages (cont.): fault, and, 472

loss

causation, 473, 474 consequential loss, 471, 489 extent, of, 472 foreseeability, 472, 474, 475 remoteness, and, 472, 473

value of performance, 471

Loans chattels, 151

consideration, absence of, 151 consumer credit transactions, 152, 153 consumer protection, 152, 153 counter-performance, 152 declarations of intention, 152 deductions, 152

EC legislation, 152 gratuitous contract, as, 152 interest payments, 152 money, 151

obligations borrowers, 151 creditors, 152 debtors, 152 lenders, 151

repayment, 152 standard of care, 151 termination, 151, 152 transfer of property, 151

Loss

causation, 473, 474

consequential loss, 471, 489, 512, 539 damages, and, 471, 472, 489

and see Damages economic loss

see Economic loss foreseeability, 472, 474, 475 remoteness, 472, 473 transferred loss

see Transferred loss

Managing of affairs bailment, and, 160 banking relationships, 159 brokerage, 159–160 construction projects, 159 EC legislation, 159 economic activity, 159

expert opinions, drafting of, 159 movables, 160

professional negligence, and, 159 remuneration, 159

rules, governing, 159, 160 standard of liability, 160

Mandate

see also Managing of affairs agency, and, 158 distinguishing features, 158 nature, of, 158

obligations, 158 performance, 158

rules, governing, 158, 159 standard of liability, 158

Mental incapacity awareness, of, 238 consent, and, 240 free will, and, 238

guardianship, and, 239, 240 legal certainty, and, 238, 239

legal representation, 239 necessaries, 239

partial incapacity, 239 permanent incapacity, 239 restitution, and, 238

rules, governing, 229, 230, 238 temporary, 238 unconscionable bargains, 238 undue influence, 238

Minors

agency, and, 231

beneficial contracts, 232, 233 consent, and, 233, 234, 236 declarations of intention, 233

and see Declarations of intention

English law

contractual capacity, 229 employment contracts, 232 fraud, under, 236 necessaries, 230, 231, 234 partnerships, involving, 234 restitution, 236, 237 suspended invalidity, 233 trading contracts, 232 unjust enrichment, 237

voidable contracts, 233, 234, 235 and see English law

falsus procurator, as, 231 gainful occupation, 233 guardianship, 230, 234 legal disadvantage, 231

legal representation, 230, 231, 233–235 legal responsibility, 230

liability, of, 231

neutral transactions, 231, 233 partial capacity, 231 restitution, and, 235, 236 share acquisition, 235 suspended invalidity, 233

transfer of property, 233, 234, 235 unjust enrichment, 235, 236

Misrepresentation

contractual terms, affected by, 311, 312 culpa in contrahendo, and, 311–314 damages, for, 311, 312

duty to disclose, 306–308 and see Duty to disclose

effect, of, 311

fraudulent misrepresentation, 306 further reading, 302

mistake, and, 285 and see Mistake

negligent misrepresentation, 312, 313 pacta sunt servanda, and, 310, 311 recission, and, 302, 303, 305, 307, 311

and see Recission reliance interest, 302 term of contract, and, 314 wilful conduct, 311

Mistake

abstraction principle, 286 business relevance, 299

calculation mistake, 283, 285, 294, 295 categories, of, 278

comparative approach, 279 contracts of transfer, 286

culpa in contrahendo, and, 277, 279, 285, 289 and see Culpa in contrahendo

declaration mistakes calculation errors, 294, 295

casuality, 292, 293 contracts of transfer, 286

declarations of will, 293, 294, 297 effect, of, 283, 287

electronic declarations, 297 expression mistakes, 291 meaning mistakes, 291, 292 mistake of law, 295–297 non est factum, 292 relevance, of, 284, 287 transmission mistake, 292

defective declarations, 284 effect, of, 278, 283, 287 English law

acceptance of risk, 280 caveat emptor, 280 common mistake, 324 contractual intention, 280 effect, of, 279

equitable jurisdiction, 281, 282, 287 fundamental nature, 279, 280, 281, 287 identity, as to, 281, 299, 300 inducement, 281

mistake of fact, 279 mistake of law, 296

negligent misrepresentation, 285 non est factum, 292

recission, 282

rectification, 281, 282, 288, 324 remedies, 287

specific performance, 281 subject matter, 279, 280, 281 terms, as to, 281 warranties, 280

and see English law error

common error, 301–302

declaration mistakes, 283, 284, 286, 289 declaration of will, 278, 282, 293, 294, 297,

302

defective declarations, 284 error in substantia, 297 excusable, 283

expression mistakes, 278, 289 irrelevant errors, 296

mistaken motive, 278, 282, 284, 285, 286, 302 relevant error, 278

self-induced, 298

subjective intention, and, 282 unilateral, 291

fair dealing, and, 283, 284 fraud, and, 285

further reading, 276 good faith, and, 283, 284

and see Good faith imputed knowledge, 283 misrepresentation, and, 285 mistake of law

commercial certainty, and, 296 difficulties, associated with, 295 effect of, 296

immediate consequences, 296 irrelevant errors, 296 meaning of words, 296 reasonableness test, 296 reflex consequences, 296 type of agreement, 296

person, as to, 297 price, involving, 298

Principles of European Contract Law, 283, 285

INDEX 971

provisions, governing, 277, 282 quality, as to, 297, 298, 299

recission, and, 278, 282, 283, 285, 286, 288, 289, 294

and see Recission relevant mistake

determination, of, 278 misrepresentation, 278 self-induced mistake, 278 unilateral mistake, 278, 284

reliance interest, 278 repetition, of, 283 restitution, and, 290 risk, assumption of, 283

Roman law, and, 278, 279 self-induced, 283 separation principle, 286

theoretical influences, 277, 278, 279 third parties, 286, 290

unjust enrichment, 298

Mitigation of damages see also Damages compensation, and, 475 contributory fault, 475

contributory negligence, 476, 477, 478 duty to mitigate, 475, 476

fault, and, 476 and see Fault

protective duty, 476, 477 rules, governing, 475, 476

Mixed contracts

freedom of contract, 162

and see Freedom of contract nature, of, 162, 163

rules, governing, 162, 163

Negligence coercion, and, 316

contributory negligence, 472, 476, 477, 478 economic loss

liability, for, 208

negligent certifications, 209–211, 213 negligent misstatement, 211, 212 negligent performance, 212

and see Economic loss fault, and, 94, 447

and see Fault liability, for, 95, 99

negligent misstatement, 91, 103, 116, 126, 211, 212, 313

professional negligence, 159

Obligations

collateral obligations contract for sale, 147 good faith, and, 125–130

third party protection, 204, 205, 215, 216 contracting out, 46, 47

contractual relationships, 25, 28, 29 culpa in contrahendo, 56, 58

and see Culpa in contrahendo default rules, 131

disclosure of information, 129, 130 equitable obligations, 129

good faith, and, 125–130 and see Good faith

meaning, of, 25 non-material interests, 9

obligational relationships, 25, 28, 29 performance obligations, 127, 128, 129

972 INDEX

Obligations (cont.): performance, of, 9 personal interests, 9 prejudicial behaviour, 127 pre-trial discovery, 129 promise, and, 55

protective obligations, 127, 128 secondary obligations, 124, 128 specific performance, and, 127 and see Specific performance

unilateral obligations, 9 voluntary obligations, 25 voluntary undertaking, 28

Offer acceptance

method, of, 63 notice, of, 63 separate, from, 58

binding nature, 26, 58, 66 communication

addressees, 67–70 notification, 69 receipt of offer, 69

requirements, for, 67, 69 transmission of offer, 69

declaration of intention, 26, 27, 57, 58, 59, 67 and see Declaration of intention

duration

immediate acceptance, 63 lapsed offers, 64

method of acceptance, 63 reasonable period, 63

further reading, 56–57 in absentes, 69

invitation to treat, distinguished, 58, 62–63 irrevocability

commercial considerations, 66 comparative approach, 65, 66 contractual clauses, 64 intention, and, 65

non-offers, 64 qualified offers, 64

negotiations, 58

obligational relationship, and, 28 offer of reward, 68 pre-contractual obligations, 58, 59 promissory estoppel, 65 revocable offers, 64, 66 unaccepted offers

binding effect, 64, 65, 66 commercial considerations, 66 damages claims, 65, 66 performance, and, 65 qualified offers, 64, 65 revocation, 65, 66

Pacta sunt servanda application, 265 binding force, 263

doctrine, of, 26, 53, 263–265, 298, 310, 311 misrepresentation, and, 310, 311

and see Misrepresentation qualifications, on, 264

will theory, and, 263

Parties

agreement, between, 4 equality, and, 2, 3

intention, 56, 57, 135–138, 139, 141 and see Intention

promise, by, 55

relative strengths, 2, 3, 39, 40, 42, 53 third parties

see Third parties

Performance

advance performance, 353, 354, 356

breach of contract, and, 9, 379, 380, 386–388, 390

and see Breach of contract

Brussels Convention, 361 compensation for value, 434, 435 concurrent, 352 contemporaneous, 351, 352 continuing contracts, 436–437 contract for work, 524–527

and see Contract for work countervailing rights, 352

damages in lieu, 441, 442, 451, 454, 455, 459, 467, 470, 503, 511

and see Damages

debt payments, 366, 367, 370 and see Debt payments

default, 351, 352, 354 defences, 352

delay, in, 9

duties of performance

breach of contract, and, 421, 422, 455 impossibility, 429, 430

late performance, 426, 451–455, 464 non-conforming performance, 422, 427, 428,

454, 493, 494

partial performance, 421, 422, 428, 429, 454 period of grace, 422

period of performance, 421, 502, 503, 505 protective duties, 459–460

refusal, 431

enforced performance, 329, 502–508 and see Enforced performance

exceptio non adimpleti contractus, 351 failure to perform

breach of contract, 421 damages, 442

fault principle, 421 impossibility, and, 421 termination, and, 421

ultimate failure, 452–453, 470, 527 wasted expenditure, 464

impossibility

contract for services, 530 contract for work, 522, 525 damages, and, 455–459, 470 duty to perform, 9, 429, 430 sale of goods, 509

and see Impossibility

late performance, 426, 451–455, 464 non-conforming performance, 422, 427, 428,

454, 493, 494, 502, 508

partial performance, 421, 422, 428, 429, 454 performance/counter-performance

interaction, 352–354 refusal to perform, 352, 354 relationship, between, 349

place

consumer sales, 357, 360 distance selling, 360 generic goods, 358 goods in transit, 357 jurisdictional issues, 361

ownership of goods, 357, 358, 360 place of business, 360, 361

place of residence, 359, 361

risk allocation, 358–361 rules, governing, 349, 357 sale of goods, 357–360

provisions, governing, 349 recission, 354

and see Recission refusal, 431 repudiation, 354

retention, right of, 354–355 sale of goods

comparative approach, 504 damages in lieu, 503 disproportionate outlay, 506 enforced performance, 502–508 generic goods, 505 impossibility, 506

later performance, 506 legal defects, 505

non-conforming performance, 502, 508 period of performance, 502, 503, 505 physical defects, 504, 505

qualitative late performance, 506, 507 subsequent performance, 502, 506, 507,

513

substituted goods, 505, 506, 507 and see Sale of goods

set-off, 349, 373–378 and see Set-off specific performance

see Specific performance subsequent performance

consumer sales, 515, 516 contract for work, 524–527 damages, 511

enforced performance, 502, 506, 507, 513, 514

primary rights, 513–515 sale of goods, 511, 513–516 secondary rights, 513–515 self-help, and, 514

time period, 514 termination, and, 508, 514

substitutes deposit, 349 release, 349

set-off, 349, 374, 376, 377 termination, and, 421

and see Termination

third parties, and, 349, 362–366 and see Third parties

time

advance performance, 356 debtor’s default, 357 delay, 357

impossibility of performance, 357 loan repayments, 356

notice requirements, 356 no time fixed, 356 obligation due, 356

provisions, governing, 349, 355, 356, 357 rent payments, 355, 356

tender of performance, 356, 357 unperformed contract

bilateral contract, 350, 355 brokerage contracts, 350 credit mandates, 351 further reading, 349 mandate, 350, 355

synallagmatic contracts, 349, 350, 351 unilateral contract, 350

INDEX 973

Prescription

breach of contract, and, 487 and see Breach of contract comparative approach, 488

consumer sales, and, 489 differing periods, 487, 488 effect, of, 490, 491 further reading, 486–487

limitation periods, 489, 490 non-conforming performance, 489 proprietary interests, 490 provisions, governing, 487, 489 reform proposals, 488

restart, 491

simple damages, 489 suspension, 490 unitary approach, 488

Price

payment, of, 496

reduction, in, 509–510, 514, 525, 526 refusal to pay, 9

Private law

breach of confidence, 42 constitutionalisation

see Constitutionalisation consumer protection, 52 privacy rights, 37, 42 remedies, 37

and see Remedies self-determination, 42

Privity of contract economic loss, and, 209

and see Economic loss insurance contracts

see Insurance contracts relaxations to privity

comparative approach, 181 consideration, and, 181, 182 contractual examples, 187 insurance contracts, 185, 194–196 ius quaesitum tertio, 181 relativity of contract, 183

third parties, and, 181, 182, 183 third parties

see Third parties

Public policy

constitutional values, 248, 249 contracts of transfer, 250 extra-contractual justice, 249 further reading, 247–248 human rights, and, 249

and see Human rights

judicial intervention, 248, 250, 253 justice

contractual conceptions, 249 standards of justice, 249

provisions, covering, 248

Recission

breach of contract, and, 125 and see Breach of contract

coercion, and, 315 and see Coercion

contractual reliance, and, 290 damages, right to, 288, 289

and see Damages

deception, and, 302, 303, 305, 307 and see Deception

declaration defects, 287 declaration mistakes, 287, 289

974 INDEX

Recission (cont.):

declaration of intention, 27

and see Declaration of intention declaration of will, as, 287, 288 effect, of, 287–290

false statements, and, 308 fault, and, 288, 294 fraud, for, 285

liability, and, 278, 288, 289, 294 limits, on, 290

meaning, of, 286, 287 misrepresentation, and, 302, 303, 311

and see Misrepresentation motivation, and, 282 provisions, governing, 287 reliance interest, 278, 288, 294 retroactive effect, 290, 298, 303 right, of, 286, 287, 289

status relationships, 290 subjective intentions, 288 technical mistakes, 283

third party protection, 286, 290 time limits, 289, 294, 302 voidable contracts, 287, 288

void contracts, and, 287, 290, 298

Remedies

breach of contract, 455, 494 and see Breach of contract

Bürgerliches Gesetzbuch) (BGB), and, 385 and see Bürgerliches Gesetzbuch) (BGB)

damages, 389, 390 and see Damages

enforced performance

see Enforced performance limitation periods, 390–392 performance in specie, 387, 388 prescription, and, 391 reformed system

codification, and, 383 damages, and, 386

EC law, influence of, 382–384 enhanced performance, 386 further reading, 381–382 historical background, 382–385 objections, to, 385, 386 objectives, 382, 383

outline, of, 386–392 prescription, and, 391 termination, and, 386, 389

reinstatement cost, 525, 526 restitution, 389

sale of goods, 495

and see Sale of goods specific performance, 388

and see Specific performance statutory termination, 389 termination, 386, 388, 389, 390

Rent contracts

breach of covenant, 539 conformity, definition of, 537 contractual duties, 149 contractual nature, 149 contractual principles

breach of contract, 534, 535, 536 frustration of contract, 537

late performance, 534 termination, 534

damages

breach of covenant, 539 consequential loss, 539

defects, for, 539, 540 non-conforming performance, 539 right to, 535, 536, 539, 540

defects, liability for, 537, 539, 540 duty of care, 535

further reading, 533 leases

see Leases lessee’s rights, 536 movables, 150 performance

duties, relating to, 535 enforced performance, 538 failure, of, 537

fault principle, 536 impossibility, 536, 537 late performance, 535

non-conforming performance, 537, 539 period for performance, 535

and see Performance premises, 150

private accommodation freedom of contract, 150 shortages, 150

special regime, 150 quiet enjoyment, 536 rent reduction, 539

repair covenants, 535, 540 rules, governing, 149, 533–535 sale of premises, 150 termination, 149, 150, 539

Restitution

consumer rights, 270, 272, 273 damages, and, 443, 479

and see Damages

debt payments, and, 366, 367, 368, 371 and see Debt payments

English law, and, 33, 236, 237 frustration of contract, 333 grounds, for, 33

mental incapacity, 238 minors, 235, 236, 237 mistake, and, 290

and see Mistake remedy, as, 389

sale of goods, and, 509 and see Sale of goods

termination, and, 432, 433, 435, 509 and see Termination

Rights

see Sale of rights

Risk

see also Transferred loss allocation

foundation of the transaction, 324–325

frustration of purpose, 343–346 performance, and, 358–361

carriage by sea

bills of lading, 221–223 contractual remedies, 221, 223 contractual rights, 223 damages, recovery of, 220, 221 statutory provisions, 223 third party loss, 222

tort claims, 222 goods

damage in transit, 220 ownership, of, 220

transfer, of, 220

restitutionary, 420, 432, 433, 435 consumer transactions, 420

see also Consumer rights continuing contracts, 436–437 counter-performance, and, 419, 421 declaration of intention, 27 declaration of will, 420

duties of protection, 432 exclusion, of, 431–432 fault principle, 420

and see Fault principle further reading, 419 justification, 419 notice, by, 437

pacta sunt servanda, and, 419 performance

duties, of, 421, 432

partial performance, 421, 422, 428, 429

and see Performance provisions, governing, 420, 421 purpose, of, 419, 432

reason, for, 420

reciprocal contracts, involving, 419, 420 recission, distinguished, 419 restitution, and, 432, 433, 435, 509

and see Restitution

sale of goods, and, 508, 509 and see Sale of goods

statutory right, 433

subject matter destroyed, 434, 435

Terms

auxiliary terms, 60 certainty, 134

comparative approach, 138 completive interpretation actual intention, 141

contractual framework, 141 good faith, 141 hypothetical intention, 141 purpose, of, 141 reasonable intention, 141

conflicting terms, 80, 81 default rules

departure, from, 142 effect, of, 141, 142 extent, of, 142

judicial intervention, 142, 143 exclusion clauses, 47

express terms, 130, 131, 138 freedom of contract

see Freedom of contract further reading, 133

good faith, and, 130, 131, 134, 135 and see Good faith

implied terms

default rules, 140, 141 implied in fact, 138, 139 implied in law, 138, 140 importance, of, 139

judicial intervention, 142, 143 tacit agreement, 139, 140

intention

declaration of intention, 134, 135 parties, of, 133–138, 139, 141 true intention, 134, 135

and see Intention interpretation

burden of proof, 137 comparative approach, 135–138

INDEX 977

completive interpretation, 139, 141 contract process, 139

contract wording, 137, 138 judicial intervention, 138, 139 literal meaning, 134, 135 objective approach, 133, 134, 135,

138

parties’ intentions, 139 parties’ interests, 139 peripheral circumstances, 139 purpose, of, 133

subjective approach, 133, 134, 135, 138

judicial intervention, 138 negotiation, of, 171 standard terms, 46, 131 unfair terms, 47

Third parties agency, and, 112

and see Agency beneficiaries

defences, against, 201–202 insurance policies, 201 irrevocable rights, 201 unjust enrichment, 203

contracts in favour

carriage of goods, 196–197 examples, of, 187

further reading, 186–187 insurance contracts, 194–196, 201 medical contracts, 189–190 partnership agreements, 201 retirement benefits, 188, 189 savings accounts, 190–193, 201 travel contracts, 193–194 widows’ pensions, 188

defences

promisee, against, 201, 202 promisor, against, 201, 202, 215,

216

third party, against, 201, 202 enforcement, by, 184

gifts, involving, 190, 191 mistake, and, 286, 290

and see Mistake performance

assignment of contract, 363 construction contracts, 364–365 contracts for services, 362

debt payments, 366–373 employment contracts, 362 further reading, 361–362 interest, in, 184, 349 liability, 363, 364 mandatories, 363, 364 rules, governing, 362, 366 sub-contracts, 362–365 substitution, 363, 364 vicarious liability, 364

vicarious performance, 362–364 and see Performance

privity of contract, 181–183 and see Privity of contract

protection, of, 183, 184, 187, 199 see also Third party protection

rights

acquisition, 197–199 comparative approach, 184–186,

199

enforcement, of, 184, 199

978 INDEX

Third parties (cont.): rights (cont.):

express provision, 197, 198 French law, 193–194

judicial position, on, 183, 198, 201 legislation, involving, 183, 184 modification, 199, 200, 201 presumptions, use of, 198 promisor/promisee’s intention, 197, 198,

199 remedies, 184

revocation, 199, 200

UK developments, 183, 184, 197–200 vesting, of, 199–201

Third party protection

collateral obligations, 204, 205, 215, 216 comparative approach, 215

contractual provisions, 204 damage, likelihood of, 207

duty of care, 209, 211, 213, 214, 216 economic loss, and, 204, 208, 209 further reading, 204

good faith, and, 206 health and safety, 206 implied intention, 206

judicial attitude, towards, 206, 207 mistake, and, 286, 290

and see Mistake

personal injury, and, 204, 205 personal responsibility, 207 physical damage, and, 204, 208 primary obligations, 204, 205, 216 protective duties, 204–207, 215 proximity of performance, 207, 208 recission, and, 286, 290

and see Recission

relevant interest, 207, 209, 210, 213 rules, governing, 204, 205, 208 statutory duties, 206

vicarious liability, 204, 215

Transaction

see Legal transaction

Transferred loss see also Loss

assignment rights, 220 contractual creditors, 217 contractual debtors, 217 creditors’ interests, 217, 220 doctrine, of, 217, 219 economic loss, and, 217

and see Economic loss faulty execution, 217 further reading, 216–217 goods

bailment, 225

belonging to others, 224–225 liability, for, 224, 225 taking care, of, 224–225 third party loss, 225

implied term test, 218 indirect representation

commission agents, 223 construction cases, 224 financial loss, and, 224 freight forwarders, 223 nature, of, 223 proprietary interests, 224 undisclosed agency, 223

judicial approach, 218

non-execution, 217 parties’ intentions, 219 product liability, 219 risk, and, 220–223

and see Risk

rules, governing, 217, 219 theoretical basis, 218–220 third parties

contractual remedies, 220 damages, involving, 218, 220 loss suffered, by, 217–220, 225 rights, of, 220

risk, and, 220 tort claims, 220

Travel contracts compensation, 157

EC legislation, 157, 194 insurance, and, 157 obligations, under, 157 third party rights, 193–194

Usury

contra bonos mores, 251 disadvantage, requirement for, 250 inexperience, 251

leases, and, 250 and see Leases

legal consequences, 251 loans, 250, 252 predicament

financial need, 251 temporary nature, 251

provisions, governing, 250, 254 recovery, 252

standard of justice, 250 statutory intervention, 252 substantive justice, and, 250 unconscionable bargains, 252 undue influence, 252

unfair advantage, 250, 252, 253

Validity

capacity, and, 228 and see Capacity

consumer protection, and, 228 contractual justice

procedural, 227, 228 substantive, 227, 228

deficiency, and, 228 fairness, and, 228 formalities, and, 84, 85

and see Formalities formation process, and, 227 illegality, and, 228

and see Illegality judicial intervention, 227 labour contracts, 244

misrepresentation, and, 228 mistake, and, 227

and see Mistake

moral values, and, 227, 228 public policy, 228

and see Public policy statutory prohibitions, 228 unjust enrichment, 228 voidable contracts, 228 void contracts, 228

Vitiating factors see Setting aside

Wasted expenditure see also Damages

expectation interest, 462 failure of performance, 464 reasonably incurred, 463 recovery, of, 460, 461, 463, 464

reliance interest, and, 461, 462 remoteness of damage, 464 sale of goods, and, 511

and see Sale of goods

Work

see Contract for work