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Additional resources for Contract Law, Fourth Edition (Law Cards)
Example text
Statute Parliament, as a matter of public policy, has in various instances seen fit to imply terms into contracts, for example: The Sale of Goods Act 1979 which implies the following terms into contracts for the sale of goods Terms implied into all sales: Ü that the seller has the right to sell the goods; Ü that goods sold by description correspond with the description. Terms implied only into sales by way of business: Ü that the goods are of satisfactory quality. Goods are of a satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price, if relevant, and all other relevant circumstances.
Held—where a party to an existing contract later agrees to pay an ‘extra bonus’ in order that the other party performs his obligations under the original contract, then the new agreement is binding if the party agreeing to pay the bonus has thereby obtained some new practical advantage or avoided a disadvantage. In this particular case, the advantage was the avoidance of a penalty clause and the expense of finding new carpenters. Ü Note—Stilk v Myrick (above) recognises as consideration Ü only those acts which the promisee was not under a legal obligation to perform.
They heard nothing further, but paid some instalments and then received a threat of being wound up if the full arrears were not paid immediately. The court was not prepared to allow Williams v Roffey Bros to overturn a rule laid down by the House of Lords in Foakes v Beer. Promissory estoppel If a promise, intended to be binding, and intended to be acted upon, is acted upon, then the court will not allow the promisor to go back on his promise There are problems with regard to: Origins Ü It was introduced (obiter) by Lord Denning in the Central London Property Trust Ltd v High Trees House Ltd (1947) where owners of a block of flats had promised to accept reduced rents in 1939.