Construction of Terms - Law of Contract - Lecture Slides, Slides of Contract Law

Download Construction of Terms - Law of Contract - Lecture Slides and more Slides Contract Law in PDF only on Docsity! Interpretation and construction of terms Parol evidence No extrinsic evidence, oral or written, relating to matters outside the contract can be given to contradict, vary or add to the written terms of the contract. Docsity.com Interpretation and construction of terms Exceptions to the Parol evidence rule: 1. Only parts of the contract are in writing: Lam Tun Ming v Hu Chun Leung [1991] HKLY 552 – purchase of shares – bought and sold notes produced – acceptable. 2. Where it is necessary to allow extrinsic evidence to prove that the contract had not come into operation: Pym v Campbell (1856) 6 E & B 370 – condition not satisfied – no contract 3. Where there are causes affecting the validity of the contract (I.e. no consideration, identity of the subject matter (Raffles v Wichelhaus (1864) 2 H & C 906 – id of the ship) Docsity.com Exemption/Exclusion clauses To be effective, such clauses must pass a 3 stage test: 1. Incorporation into contract ? 2. Clear and wide enough to protect the relying party ? 3. No contravention of the CECO Docsity.com Exemption/Exclusion clauses Incorporation By: (1) Signature: L’Estrange v F Graucob Ltd [1934] – Signature without looking – bound – NB: comm (2) Reasonable notice: Olley v Marlborough Court [1949] followed by Seapower Resources v Assure Co Ltd [2001] HKEC 1517 (3) Consistent cause of dealings: J Spurling Ltd v Bradshaw [1956] 2 All ER 121 – similar documents read into the current contract Docsity.com