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Chapter 1 Introduction1

1.1 English Law System2

1.1.1 Historical Background of Modern English Legal System2

1.1.2 Categorisation of Law9

1.1.3 Legal Method11

1.2 Contract15

1.2.1 Definition of Contract15

1.2.2 The Classification of Contracts16

1.2.3 Contracts in Shipping17

1.2.4 Elements of the Law of Contract18

1.2.5 A Guide to the Law of Contract in this Book18

1.3 Tort Law22

1.3.1 Introduction22

1.3.2 Categories of Tort23

1.3.3 Introduction of Main Torts24

1.3.4 A Guide of Tort Law in this Book27

Chapter 2 Contract Law-Formation of a Contract：Offer and Acceptance29

2.1 Offer29

2.1.1 Definiteness of an Offer29

2.1.2 Offer Distinguished from Invitation to Treat30

2.2 Acceptance36

2.2.1 Unconditional Acceptance36

2.2.2 Subject to Contract38

2.2.3 Acceptance of Tenders42

2.2.4 Acceptance Communicated44

2.2.5 Specified Methods of Acceptance48

2.2.6 Acceptance Given in Exchange for the Offer49

2.2.7 Offer and Acceptance Implied by the Court50

2.2.8 Termination of Offer51

2.2.9 Anomalous Cases53

Chapter 3 Contract Law-Formation of a Contract：Intention to Be Legally Bound54

3.1 The Reasonable Man Test54

3.2 Two Presumptions55

3.3 Domestic Agreements55

3.3.1 Agreements between Husband and Wife55

3.3.2 Agreements between Parent and Child57

3.3.3 Other Domestic Arrangements58

3.4 Commercial Agreements58

3.5 Collective Agreements64

Chapter 4 Contract Law-Formation of a Contract：Consideration66

4.1 Definition66

4.2 Types of Consideration-Executory,Executed and Past67

4.3 Judicial Rules Relating to Consideration71

4.3.1 Consideration Moving from Promise71

4.3.2 Consideration Not Adequate75

4.3.3 Consideration Real76

4.3.4 Existing Public Duty78

4.3.5 Existing Contractual Duty80

4.3.6 Existing Contractual Duty to a Third Party82

4.4 Part-payment of Debts83

4.5 Promissory Estoppel85

Chapter 5 Contract Law-Privity of Contract89

5.1 Development of the Doctrine of Privity of Contract89

5.2 Established Exceptions91

5.2.1 Statutory Exceptions91

5.2.2 Agency94

5.2.3 Collateral Contract95

5.2.4 Covenants Which Run with the Land95

5.2.5 Restrictions on Price96

5.3 Attempts to Evade Privity96

5.3.1 Restrictions upon Use97

5.3.2 Restrictions upon Price101

5.3.3 The Trust Device102

5.3.4 Section 56 of the Law of Property Act 1925105

5.4 Right to Claim Damages106

5.5 Contracts（Rights of Third Parties）Act 1999111

5.5.1 Variation and Cancellation112

5.5.2 Defences113

5.5.3 Exceptions114

5.6 Himalaya Clause114

Chapter 6 Contract Law-Terms of the Contract117

6.1 Certainty117

6.2 Express Terms119

6.2.1 The Parol Evidence Rule119

6.2.2 Representations and Terms120

6.2.3 Collateral Contracts124

6.3 Conditions,Warranties and Innominate Terms126

6.3.1 Condition126

6.3.2 Warranty127

6.3.3 Innominate Term128

6.4 Implied Terms130

6.4.1 Terms Implied by Custom130

6.4.2 Terms Implied by Statute131

6.4.3 Terms Implied by the Court132

6.5 Interpretation of Terms in Contracts135

Chapter 7 Contract Law-Exclusion Clause140

7.1 Introduction140

7.2 Incorporation140

7.2.1 Document Signed140

7.2.2 Requirement of Notice141

7.2.3 Previous Dealings142

7.3 Construction143

7.3.1 Contra Proferentem Rule143

7.3.2 Repugnance to Main Purpose144

7.3.3 Fundamental Breach144

7.4 Further Limitations on Exclusion Clauses146

7.4.1 Position of Third Parties146

7.4.2 Inconsistent Oral Promise147

7.5 Legislation148

7.5.1 Unfair Contract Terms Act 1977148

7.5.2 Evaluation of the Act166

7.5.3 Unfair Terms in Consumer Contract Regulations 1999167

Chapter 8 Contract Law-Misrepresentation169

8.1 Introduction169

8.2 Actionable Misrepresentation170

8.2.1 False Statement of Fact170

8.2.2 Meaning of Inducement176

8.3 Types of Misrepresentation179

8.3.1 Fraudulent Misrepresentation179

8.3.2 Negligence Misrepresentation at Common Law181

8.3.3 Negligence Misrepresentation under the Misrepresentation Act 1967184

8.3.4 Wholly Innocent Misrepresentation187

8.4 Remedies for Misrepresentation187

8.4.1 Rescission188

8.4.2 Bars to Rescission189

8.4.3 Damages for Misrepresentation190

8.5 Relationship between Misrepresentation and Estoppel192

Chapter 9 Contract Law-Mistake194

9.1 Introduction194

9.2 Mistake Relating to Documents196

9.2.1 Non Est Factum197

9.2.2 Rectification201

9.3 Identical or Common Mistake202

9.3.1 Agreements Void Both at Common Law and Equity202

9.3.2 Agreements in Respect of Which Equity Will Give Relief204

9.4 Non-identical Mistake207

9.4.1 Effect of Mutual and Unilateral Mistake at Common Law209

9.4.2 Effect of Mutual and Unilateral Mistake in Equity215

Chapter 10 Contract Law-Duress and Undue Influence218

10.1 Duress218

10.1.1 Unconscionable Bargains220

10.1.2 Economic Duress221

10.2 Undue Influence227

10.2.1 No Special Relationship between the Contracting Parties228

10.2.2 A Confidential Relationship between the Parties229

Chapter 11 Contract Law-Discharge of the Contract237

11.1 Introduction237

11.2 Frustration237

11.2.1 Nature and Rationale of the Doctrine237

11.2.2 Theories as to the Basis of the Doctrine242

11.2.3 Limits to Frustration244

11.2.4 Legal Effect of Frustration247

11.2.5 Law Reform（Frustrated Contracts）Act 1943248

11.3 Breach249

11.4 Agreement252

11.4.1 Consideration and Formalities253

11.4.2 Rescission,Variation and Waiver254

11.5 Performance255

11.5.1 Severable Contracts256

11.5.2 Substantial Performance257

11.5.3 Voluntary Acceptance of Partial Performance257

11.5.4 Prevention of Performance by Breach or Frustration258

11.6 Tender of Performance259

11.7 Stipulations as to Time259

Chapter 12 Contract Law-Remedies261

12.1 Introduction261

12.2 Damages261

12.2.1 Basis of the Award261

12.2.2 Contributory Negligence262

12.2.3 Damages for Mental Distress263

12.2.4 Remoteness of Damage266

12.2.5 Measure of Damages269

12.2.6 Mitigation271

12.2.7 Liquidated Damages and Penalties273

12.3 Action for an Agreed Sum274

12.4 Quantum Meruit277

12.5 Specific Performance and Injunction278

12.5.1 Specific Performance278

12.5.2 Injunction280

12.6 Other Remedies281

12.7 Limitation of Actions281

Chapter 13 Tort Law-Negligence：Duty of Care283

13.1 Introduction283

13.2 Establish a Duty283

13.2.1 Forseeability and Proximity and the“Just and Reasonable”Requirement284

13.2.2 Public Policy290

13.2.3 Present Position292

13.2.4 Conclusion293

13.3 Economic Loss：Negligent Misstatement294

13.3.1 Hedley Byrne294

13.3.2 Subsequent Developments295

13.3.3 Application of Hedley Byrne296

13.3.4 Disclaimers and Contributory Negligence297

13.3.5 Reliance by a Third Party298

13.4 Economic Loss：Negligent Acts298

13.4.1 Damage to Third Party Property299

13.4.2 Acquiring Defective Property299

13.5 Nervous Shock302

13.6 Omissions305

13.7 Legal Immunities306

Chapter 14 Tort Law-Breach of Duty308

14.1 Introduction308

14.2 Objective Standard311

14.2.1 Standard of the Reasonable Person311

14.2.2 Negligence Distinguished from“Mere Errors”312

14.2.3 General or Variable?314

14.3 Professional Standards316

14.4 Weighing the Risk and Gravity of Harm against the Cost of Prevention320

14.4.1 Risk and Foreseeability of Damage321

14.4.2 Assessing the Costs of Prevention323

14.5 Proof of Carelessness327

Chapter 15 Tort Law-Causation and Remoteness of Damage332

15.1 Cause of Damage332

15.1.1 Nature of Causal Inquiry332

15.1.2 But-for Causation335

15.2 Remoteness of Damages349

15.2.1 Intervening Acts of the Third Parties349

15.2.2 Act of the Claimant352

15.2.3 Foreseeability of the Extent of Damage355

15.2.4 Foreseeability of the Causal Sequence359

15.2.5 Remoteness and Damages to Property360

15.2.6 Remoteness and Pure Economic Loss362

15.2.7 Remoteness of Damage in Contract and Tort363

Chapter 16 Tort Law-Damages365

16.1 Preliminary Observations365

16.2 Notions of Damage and Damages365

16.3 Types of Damages366

16.3.1 General and Special Damages366

16.3.2 Nominal and Substantial Damages367

16.3.3 Contemptuous and Aggravated Damages367

16.3.4 Punitive（or Exemplary）Damages369

16.3.5 Compensatory Damages375

16.4 The Principle of Full Compensation375

16.5 The Interrelationship of Tort and Other Compensation Systems378

16.5.1 Benefits not Covered by the Statutory Regime380

16.5.2 Benefits Subject to the Statutory Regime381

16.6 Lump-sum Compensation383

16.7 Pecuniary Losses386

16.7.1 Medical and Other Expenses up to the Date of Trial386

16.7.2 Prospective Losses387

16.8 Injunctions388

16.8.1 Prohibitory Injunctions388

16.8.2 Mandatory Injunctions389

16.8.3 Quis Timet Injunctions389

16.8.4 Interlocutory（or Interim）Injunctions389

16.9 Damages in Lieu of Injunctions390

16.10 Joint and Concurrent Liability391

16.10.1 Joint and Concurrent Liability Distinguished391

16.10.2 Successive Actions391

16.10.3 Contribution and Apportionment392

16.10.4 Indemnity397

16.10.5 Secondary Civil Liability398

Conclusions and Look Forward400