UNIVERSIT
Y OF NEW
SOUTH
WALES
LAWS1072
–
CONTRACTS
1
, II
SEME
STER
II
2012
2
, Table of Contents
What is a contract?........................................................................................................................9
What are the terms of a contract?................................................................................................9
Consent to incorporation of terms in a contract.................................................................................10
Signature.........................................................................................................................................10
Exceptions to the Signature Rule.................................................................................................12
Incorporating terms by notice (ticket cases – conduct without signature)......................................14
Timing..........................................................................................................................................14
Knowledge or Notice...................................................................................................................16
Incorporation of express terms by a course of dealings..................................................................19
Statements made during negotiations................................................................................................22
When is a statement a term of a contract?.....................................................................................22
Determining whether a statement is promissory and thus a term of contract............................22
The Parol Evidence Rule..................................................................................................................25
The first leg of the rule in identifying the terms..........................................................................26
Exceptions to the parol evidence rule..........................................................................................28
Estoppel.......................................................................................................................................29
Terms implied in fact...........................................................................................................................31
Formal Contracts.............................................................................................................................31
Reasonable and equitable...........................................................................................................31
Implied to give the contract ‘business efficacy’...........................................................................32
Obviousness.................................................................................................................................33
Capable of clear expression and certain in operation..................................................................34
Must not contradict any express term.........................................................................................34
Informal Contracts...........................................................................................................................34
Terms implied in law............................................................................................................................34
Terms of a definable class............................................................................................................34
The test of ‘necessity’..................................................................................................................34
Terms implied by custom....................................................................................................................36
The Primary Rule – Objective Intention of the Parties.....................................................................37
Second Leg of the Parol Evidence Rule............................................................................................38
What constitutes “ambiguity”?....................................................................................................39
Construing Exclusion Clauses...............................................................................................................41
What is an exclusion clause?.......................................................................................................41
3
Y OF NEW
SOUTH
WALES
LAWS1072
–
CONTRACTS
1
, II
SEME
STER
II
2012
2
, Table of Contents
What is a contract?........................................................................................................................9
What are the terms of a contract?................................................................................................9
Consent to incorporation of terms in a contract.................................................................................10
Signature.........................................................................................................................................10
Exceptions to the Signature Rule.................................................................................................12
Incorporating terms by notice (ticket cases – conduct without signature)......................................14
Timing..........................................................................................................................................14
Knowledge or Notice...................................................................................................................16
Incorporation of express terms by a course of dealings..................................................................19
Statements made during negotiations................................................................................................22
When is a statement a term of a contract?.....................................................................................22
Determining whether a statement is promissory and thus a term of contract............................22
The Parol Evidence Rule..................................................................................................................25
The first leg of the rule in identifying the terms..........................................................................26
Exceptions to the parol evidence rule..........................................................................................28
Estoppel.......................................................................................................................................29
Terms implied in fact...........................................................................................................................31
Formal Contracts.............................................................................................................................31
Reasonable and equitable...........................................................................................................31
Implied to give the contract ‘business efficacy’...........................................................................32
Obviousness.................................................................................................................................33
Capable of clear expression and certain in operation..................................................................34
Must not contradict any express term.........................................................................................34
Informal Contracts...........................................................................................................................34
Terms implied in law............................................................................................................................34
Terms of a definable class............................................................................................................34
The test of ‘necessity’..................................................................................................................34
Terms implied by custom....................................................................................................................36
The Primary Rule – Objective Intention of the Parties.....................................................................37
Second Leg of the Parol Evidence Rule............................................................................................38
What constitutes “ambiguity”?....................................................................................................39
Construing Exclusion Clauses...............................................................................................................41
What is an exclusion clause?.......................................................................................................41
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