
- •1 The concept of promise
- •1. What is a promise?
- •(a) A definition of promise
- •(b) Promise: objectively existing phenomenon or human construction?
- •(c) Testing component elements of the definition of promise
- •(i) A promise is more than merely an internal mental process: promises as speech acts demonstrating commitment
- •(ii) A promise is a commitment to a performance of the promisor
- •(iv) A promise must relate to the future
- •(v) A promise must state a commitment in favour of another party
- •(vi) Things which are not components of the definition
- •2. Three crucial qualities of relevance to promises: gratuitousness, conditionality, unilaterality
- •(a) Gratuitousness
- •(b) Conditionality
- •(c) Unilaterality
- •3. Acts having some similarity to, but which are distinct from, promises
- •(a) Vows
- •(b) Oaths
- •(c) Threats
- •(d) Donation (gift)
- •(e) Warranties (guarantees)
- •(f) Agreement
- •4. Promise as a culturally universal and significant idea
- •5. Preliminary conclusions
- •2 Promises as obligations: morality and law
- •1. Introduction: promise as a type of obligation
- •2. Taxonomies of obligations in morality and law
- •3. Promises as moral obligations: the practice of promising
- •(a) Promising as moral, immoral, or amoral?
- •(b) Source of the morality of the practice of promising
- •(i) Promising as a virtuous act; the natural law tradition
- •Scripture
- •The canon law
- •Objections to the morality of promising as having a natural law/virtue basis
- •(ii) Promising as an act of the will: respect for personal autonomy
- •(iii) The ‘contract theory’ of promising
- •(iv) Consequentialism (utilitarianism)
- •(v) Reliance theory
- •A more limited role for reliance
- •(vi) Conclusion on the competing theories of the moral value of promises
- •4. Powers and sanctions relevant to breach of morally binding promises
- •3 The historical development of promissory ideas in the law
- •1. Roman law
- •(a) Formal contracts: the stipulatio
- •(b) Informal contracts
- •(c) Conclusion on Roman law
- •2. Medieval contract law
- •(a) Continental legal thought
- •(b) English law
- •(i) Debt
- •(ii) Covenant
- •(iii) Unilaterality and bilaterality in early English contract law
- •(iv) Assumpsit
- •(v) The doctrine of consideration
- •3. The Northern natural law school
- •(a) Hugo Grotius
- •(b) Samuel von Pufendorf
- •(c) James Dalrymple (Viscount Stair)
- •4. Eighteenth and nineteenth centuries
- •(a) English law
- •(b) Scots law
- •(c) Civilian systems
- •(i) German law
- •(ii) Robert Pothier
- •5. Contract theory and practice in the twentieth century
- •6. A revitalised will theory
- •4 Formation of contract
- •1. Wasted pre-contractual expenditure following termination of contract negotiations
- •(a) A Common law solution to the problem of pre-contractual expenditure: promissory and proprietary estoppel
- •(i) Promissory estoppel: promissory or reliance-based principle?
- •(ii) Promissory estoppel and failed contractual negotiations
- •(iii) Proprietary estoppel and failed contractual negotiations
- •(iv) Conclusion on estoppel and pre-contractual expenditure
- •(b) A civilian solution to wasted pre-contractual expenditure: culpa in contrahendo and bad faith termination of contractual negotiations
- •(c) A mixed legal system solution to wasted pre-contractual expenditure: liability from an implied assurance that a valid contract exists
- •(d) Other solutions to the problem of pre-contractual liability
- •(e) Conclusion on pre-contractual liability
- •2. Pre-contractual duties of disclosure
- •3. Offer and acceptance
- •(a) Offer and acceptance as conditional promise
- •(b) The traditional offer and acceptance model as a unilateral dictation of terms
- •(c) Distinguishing offer from conditional promise
- •(d) Problem cases for a promissory analysis of offer and acceptance
- •(e) Conceiving of offers as binding
- •4. Enforcement of auction/tender conditions
- •5. The firm or irrevocable offer
- •(a) Characterising the firm offer
- •(b) Promises of reward
- •6. Options
- •7. Letters of intent and preliminary contracts
- •(a) An intent to contract
- •(b) A preliminary contract, envisaging a further contract
- •(c) An expectation of a formal contract
- •(d) An expression of intention to do something other than contract
- •(e) A genuine unilateral promissory intention
- •8. Error in formation of contract
- •(a) Choosing the policies which inform the rules on error
- •(b) Constructing workable classifications which implement the policies chosen
- •(i) Roman Law
- •(ii) The Common law
- •(iii) The mixed legal systems
- •(iv) German law
- •(v) An ideal approach to promissory error?
- •9. Extortion in the formation of contract
- •(a) English law
- •(b) The mixed legal systems
- •(c) German law
- •(d) Conclusion on extortion
- •10. Implied terms
- •11. Consideration
- •(a) The Common law
- •(b) The mixed legal systems
- •(c) German law
- •(d) Model law
- •12. Requirements of form: unwarranted restrictions on promising?
- •5 Third party rights
- •1. The challenge to third party rights in contract
- •2. The historical legal background
- •3. Third party rights in modern contract law
- •(a) The Common law
- •(b) The mixed legal systems
- •(c) German law
- •(d) Model law
- •(e) Conclusion on third party rights under contract
- •4. Assignment
- •(a) English law
- •(b) The mixed legal systems
- •(c) German law
- •(d) Model law
- •5. The problem of transferred loss
- •(a) English law
- •(b) The mixed legal systems
- •(c) German law
- •6. Conclusion on third parties
- •6 Contractual remedies
- •1. The ‘interests’ protected by remedies
- •2. Mutuality of promises and withholding of performance
- •(a) The Common law
- •(b) Mixed legal systems
- •(c) German law
- •(d) Model law
- •3. Specific performance
- •(a) English law
- •(b) Mixed legal systems
- •(c) German law
- •(d) Model law
- •4. Perfect or substantial performance of contractual promises
- •(a) Contracts for services
- •(b) Sales of goods
- •5. Injunction (interdict)
- •6. Damages
- •(a) Contractual damages and interests other than the performance interest
- •(b) Damages for mere breach of contract, or for fault?
- •(c) English law
- •(d) Mixed legal systems
- •(e) German law
- •(f) Model law
- •7. Liquidated damages: penalty clauses
- •(a) English law
- •(b) Mixed legal systems
- •(c) German law
- •(d) Model law
- •8. Termination of contract for non-performance
- •(a) Historical origins of the right to terminate
- •(b) English law
- •(c) Mixed legal systems
- •(d) German law
- •(e) Model law
- •9. Restitution following termination for non-performance
- •(a) English law
- •(b) Mixed legal systems
- •(c) German law
- •(d) Model law
- •10. Good faith and contractual remedies
- •7 The renunciation of contractual rights
- •1. Terminology
- •2. Bilateral or unilateral renunciations
- •3. Characterising undertakings not to enforce contractual rights
- •4. Express contractual or promissory renunciation of rights
- •(a) The Common law
- •(b) Mixed legal systems
- •(c) German law
- •5. Forbearance, promissory estoppel and personal bar
- •(a) The Common law
- •(i) Forbearance at common law
- •(ii) Forbearance in equity: promissory estoppel in English law
- •(iii) Promissory estoppel in American Common law
- •(iv) Conclusion on promissory estoppel in the Common law
- •(b) Mixed legal systems
- •(i) South Africa
- •(ii) Louisiana
- •(iii) Scotland
- •(c) German law
- •6. Model Law and renunciations of rights
- •8 The future of promise in contract law
- •1. The restricted role of promise in the modern law
- •2. Future possible development of the law
- •(a) General remarks
- •(b) The Common law
- •(c) The mixed legal systems
- •(d) German law
- •(e) The development of supranational model law
- •3. Conclusion on the future of promise
Promises as Obligations: Morality and Law |
83 |
simply being taken over by the civil courts at the Reformation. By contrast with England, the Scottish experience resulted in a ‘very significant fusion of canon law and Scots common law’.81 This may still be seen today in the continued existence of a discrete obligation of promise in Scots law.
These differing jurisdictional experiences of the canon law’s relationship with secular law and courts make it difficult to state a concise view on the overall effect of canonical principles, rules, and maxims relating to promise (and to contract in general) on the civil law of Europe as a whole. Helmholz has expressed the view that the canonical interest in promises was somewhat restrictive for developing contract law, given the form of promises as unilateral acts in contrast to the bilateral nature of contract.82 This though states too narrow a conclusion for the present field of study, given that promise has been defined widely in the introductory chapter so as to include contractual as well as unilateral promises. Quite apart from this definitional point, however, it is virtually certain, as will be seen in the next chapter, that the canonical enforcement of promises was largely responsible for the rise of assumpsit in English law, a promissory action which was to provide one of the principal strands of modern English contract law. In addition, the canonical enforcement of unilateral promises was unequivocally incorporated into Scots law, albeit with an added requirement of form that had not been present in the canon law. The canonical position on certain remedies as well as on error was also certainly to influence secular contract law, as again will be seen in the next chapter. Helmholz’s conservative view seems to underestimate the influence of the canon law on the development of the secular law of contract.
Objections to the morality of promising as having a natural law/virtue basis Thus far, the case for recognising the morality of promises based upon the idea of their contribution to the virtuous life, upon natural law, and upon scripture and canon law, has been put largely without any criticism of these various foundations. There are, unsurprisingly, a number of objections to this view; some of these will be developed in the recitation of alternative theories concerning promise later in the chapter, given that such later theories were often reactions against the earlier natural
expressed the view that, excluding appeals, 24 to 27 per cent of judgments concerned ‘the rendering of money or goods by one party to another for the fulfilment of contracts’ (Donaldson, ‘The Church Courts’, p. 366).
81Ibid., p. 266. See also Cairns, ‘Ius Civile in Scotland’.
82Helmholz, Contracts and Canon Law, p. 52.
84 |
Promises and Contract Law |
law tradition. Such objections will not, however, be considered in detail, as the purpose of this work is not primarily to promote a specific view of the foundation of promise, but rather to explain its historic role in the development of contract law. Such an historic role can be explained without necessarily expressing a view in favour or against the beliefs which supported it. Some brief consideration of the principal objections to the virtue/natural law theory of the morality of promises described above will, however, now be undertaken.
The first common line of attack focuses on the characteristically Aristotelian component of the tradition: the virtues, and the alleged ‘ultimate end’ of man. It might be argued that Aristotle’s identification of man’s ultimate end, and of the means to achieve that end (the virtues), is entirely arbitrary; other societies, at other times, might conceive of a different ‘ultimate end’ for humanity, and might thus identify quite different virtues appropriate to that end. One response to such an argument is to accept its truth, whilst not agreeing with its conclusion that virtue ethics is worthless. One could agree that virtue ethics must inevitably develop out of particular societies with particular values, and that the virtues identified in Aristotle’s Greece may not necessarily be those of the twenty-first century Western world. Such an agreement would mean only an admission that virtue ethics is societally contextual, a quality which might be thought to be a positive one in its ability to make such ethics adaptable to the needs of the modern world.83 Other defenders of virtue ethics may baulk at such a concession, however, concerned that it contains within it the danger of subjectivism and relativism. They might rather point out that the virtues identified by Aristotle – such as truthtelling, and justice – are timeless and valid everywhere: it is inconceivable that a virtuous life would not be one lived in accordance with such timeless virtuous practices.
A related objection to the virtue strand of the tradition is the argument that the Aristotelian-Thomist view of the nature of man and the universe, including the theory of the ultimate end of man and the virtues attendant upon a good life, has been decisively falsified by subsequent scientific and philosophical developments. It is certainly true that modern science disputes the theory adopted by Aristotle and Aquinas about the nature of being, including, for instance, the view that one can distinguish the fundamental essence of a thing (its substance) from its external features (its accidents). That theory of substance and accidents supported various
83 See further, on the changing nature of virtues, MacIntyre, After Virtue.
Promises as Obligations: Morality and Law |
85 |
contractual principles, including a distinction between types of contract terms (those being the essential, natural and accidental). Rationalists are sceptical about the idea that certain types of contract can have specific ends, from which one may deduce the appropriate causae or reasons for which such contracts are properly undertaken. The scepticism of rationalist science and philosophy was largely accepted by subsequent thinkers,84 an acceptance which Gordley has argued has robbed modern contract theory of an underlying philosophy sufficient to explain its principles and rules.85
There are certainly few in the present age who would subscribe to an Aristotelian-Thomist view of the physical world. However, not only has virtue ethics undergone a revival which is not dependent upon an acceptance of the Aristotelian view of the nature of matter and the physical world, but, by its own standards of scientific proof, the rationalist, scientific theory of human nature has not been able to demonstrate the falsity of the concept of virtue or of a virtuous life, such ideas lying beyond the field of scientific proof. Moreover, even if one does not accept the ideas espoused by new virtue ethicists, concepts such as liberality and commutative justice and the attribution of specific ends to types of contract have to some extent found new form and substance in currently popular ideas such as good faith. That concept has come to supplement and regulate the idea of the autonomy of the will in a not wholly dissimilar way to that in which the Aristotelian virtues once did. Whether, however, the idea of free will tempered by good faith can be considered a coherent basis upon which to build a modern contract philosophy is explored later.
The second line of attack on the virtue/natural law theory of the moral force of promises focuses on the natural law element of the tradition. The criticism, simply put, is that the assertion that there is a natural law is false. Such criticism holds that there are no moral laws evident from the nature of the world around us, and that it is therefore not self-evidently the case that promising is morally virtuous. This was the position adopted by the positivists who flourished in the period from the Enlightenment onwards. Their contrary views are discussed below, so it suffices to say at this point that these alternative theories rest largely upon the view that there is no moral quality to actions (including promising) apart from the
84Though, for instance, much theology continues to be based upon Aristotelian ideas, such as the distinction drawn between substance and accidents which is used to explain the Eucharistic doctrine of transubstantiation.
85See Gordley, Philosophical Origins, pp. 230–1.