- •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
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(2)Informally, it was the basis of the pollicitatio, a unilateral promise in favour of a municipality. This was a somewhat restricted role for the informal promise, such a promise being otherwise generally unenforceable.
Promise thus had an established role in Roman contract law. It was not the only idea animating the law, but it was a powerful one, albeit one which came to have a somewhat restricted practical importance given the later development of the stipulatio as a purely written arrangement.
The stipulatio was the locus for an idea that was to be influential in later European contract law: causa. The notion of causa, taken from Roman law and mixed with Aristotelian ideas, became a generalised contractual requirement in the medieval period through the developmental scholarship of the glossators.25 The fact also that, while the stipulatio was a contract, it was based on an essentially unilateral act, a promise, set a pattern for analysing contract as an exchange of promises which proved to be an enduring analysis. It persists not only in descriptions of the basis of liability in contract in promissory terms, but also in the way in which offer and acceptance are traditionally conceived.26
The Roman stipulatio was also one of the sources used by the canonists to develop the canonical action for the enforcement of bare promises, a development discussed below. This borrowing by the canonists further ensured that promissory ideas continued to be influential in later contract law.
2. Medieval contract law
(a) Continental legal thought
Following the collapse of the Roman Empire in the West, the study of Roman law was largely abandoned for 600 years or so, before being rediscovered and taught again in the Continental universities. The greatest of the teachers of Roman law in this period of its rediscovery added their own opinions on the classical texts in the form of glosses, hence the name given to them of glossators. The founder of the glossators’ school is generally considered to be Irnerius, who taught Roman law at Bologna and died some time after 1125. The school effectively ended with the last, and
25See discussion below at pp. 116–17.
26This latter point is discussed further in Ch. 4, at pp. 212–13.
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greatest, of its members, Azo, and his pupil Accursius (who wrote in the early thirteenth century).
It is important to note that none of the glossators seems to have been familiar with the ethical writings of Aristotle, which had also been lost in the West and were not to be generally available again until their translation in to Latin in the mid-thirteenth century. This means that, while the glossators developed the doctrine of causa, teaching that the absence of causa did not simply give rise to a defence (the exceptio doli) as in classical Roman law, but meant that the contract was seen as invalid ex nunc,27 they did not put causa to the same Aristotelian uses as later scholars were to. Nonetheless, what the glossators did teach tended to the exclusion of undertakings given without any underlying causa or reason for the transaction.
The glossators’ great achievement was in discovering and enunciating general principles in the Digest, which, as was discussed earlier, was not one of the great strengths of the classical Roman law. Accursius, for instance, noted the passage at D. 2.14.1.3, stating that all contracts require consent, an observation which was clearly of use in developing the law’s later stress upon the idea of consent and agreement in contract. The glossators’ interest in general principles bore fruit in a tendency to coin general maxims or brocards expressing legal rules, though it was not until the sixteenth century that the most important maxim, pacta sunt servanda, was to be coined by the canonist Hostiensis.28
The glossators were followed by the so-called ‘post-glossators’, or ‘commentators’, writing from the mid-thirteenth century onwards, of whom the two greatest were Bartolus de Saxoferrato (who died in 1357) and his pupil Baldus de Ubaldis (who died in 1400). These scholars had the benefit both of the Roman texts, as well as the ethical writings of Aristotle. Bartolus, for instance, knew that, under the Roman law, a stipulatio might be binding even if made gratuitously, but also that it required a causa. Bartolus therefore, applying an Aristotelian approach to the idea of causa, explained that causa must mean either the receipt of something in return for what was promised or the undertaking of the promise out of liberality.29 In similar Aristotelian vein, Baldus discussed when a contract might be presumed to have been made foolishly rather than out of liberality.30 He also used
27See further Zimmermann, Law of Obligations, p. 551.
28See earlier discussion in Ch. 2, at p. 82.
29Bartolus, Commentaria to D.44.4.2.3.
30Baldus, Commentaria to C. 4.30.13, no. 14.
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his understanding of causa to explain the canonist rule that an informal executory agreement was binding. This was so, as long as the agreement had a causa (in the sense described by Baldus).31 This approach of the post-glossators was clearly in keeping with the view of Thomas Aquinas expressed in the previous century, but the significance for legal development lay in the fact that the post-glossators were first and foremost legal scholars rather than theologians with an interest in law.
The apogee of medieval legal scholarship is found, however, neither in the scholastic writings of the glossators nor of the post-glossators, but in that of the late scholastics, or Spanish natural law school. It was this school which combined most fully Roman law with Aristotelian ideas to produce a systematic theory of law, and one in which promise found a prominent place. The Spanish scholastics were heavily influenced by the Aristotelian-Thomist stress upon the virtues of promise-keeping, commutative justice and liberality,32 and used the concept of the promise to explain both the unilateral promise as well as the pact or agreement, the latter being a promise accepted by another and made either for reasons of commutative justice or liberality.33 They debated questions such as whether it was unjust to break a promise made for reasons of liberality if the promisee would merely be disappointed but not worse off as a result of the breach, Connanus (a French contemporary of the Spanish schoolmen) and Cajetan holding it was not, Lessius and Molina disagreeing.34 Lessius was concerned that Cajetan’s view would lead to the conclusion that merely executory contracts were not binding. The view of Molina, that the intention to undertake a gratuitous promise was sufficient to create a valid and binding obligation was to become especially influential in the enforcement in Scots law of unilateral gratuitous promises.35 Such debates were to continue in to the twentieth century, where, as discussed in the last chapter, reliance theorists would argue for a position similar to that advocated by Connanus and Cajetan.
Those scholastics who held that all promises were binding, regardless of the effect upon the promisee, had to answer the question of whether a promise had to be communicated and whether it had to be accepted before it was binding. Soto and Molina were of the view that, while the
31Baldus Commentaria to C. 3.36.15, no. 3.
32Gordley, ‘Philosophical Origins’, p. 71.
33See for instance Lessius, De iustitia et jure, 2.17.1; Molina, De iustitia et jure, disp. 252.
34See Cajetan, Commentaria to Summa Theologica, II-II, Q. 88, Art.1; Q. 113, Art. 1; Connanus, Commentariorum, 1.6.1; Lessius, De iustitia et iure, 2.18.2; Molina, De iustitia et iure, disp. 262.
35See later discussion of the views of Stair, at pp. 134ff.