An Introduction to the Law of Contract

This new edition updates the law taking into account changes to, and clarification in, the case law and statute law that have occurred since the previous edition.

Since the last edition was completed at the end of 2004 most of the changes that have occurred in the law of contract have been clarifications of how existing principles apply in particular instances. There have also been some important cases and they, together with statutory amendments that have been made, are covered in this edition.

The most important cases include the High Court, Federal Court and State court decisions, starting with Pacific Carriers Ltd v BNP Paribas, that confirmed the importance of the parties’ objectively determined contractual intention when deciding whether particular matters have become terms of the contract. Other significant decisions included in this edition are Khoury v Khouri and Faraday v Rappaport (confirming payment of money is not a sufficient act of part performance to circumvent the Statute of Frauds’ writing requirements); Mitchell v Valherie (an expanded view on when statements in advertising will be regarded as mere puff); and Koompahtoo Local Aboriginal Council v Sanpine Pty Limited (the first time the High Court has expressly accepted that the concept of intermediate terms is part of the law of Australia). Also noted in the Appendix is the first decision concerning the effect of the Spam Act 2003 (Cth) – Australian Communications and Media Authority v Clarity1 Pty Ltd, highlighting the seriousness with which the obligations imposed by that Act are regarded.

New to the sixth edition is a section on “disgorgement damages”, which, while not yet awarded in Australia, have been awarded in the United States and have been raised as a possible remedy for appropriate breaches of contract in the United Kingdom.

Statutory changes include the amendments to the monetary jurisdictions of the various State and Territory courts (noted in Chapter 1). Also noted are the changes to the unconscionable conduct provisions in the Trade Practices Act 1974 (Cth) and the relevant effects of the Civil Law (Property) Act 2006 (ACT).

As with previous editions, this edition continues to be an overview of the relevant principles and of how they have applied (and continue to apply), in practice. For that reason, considerable emphasis continues to be placed on readily understandable explanations supported by short summaries of the cases (seminal, pivotal or just quirky), that established, clarified or illustrate the principles that form what we know as the law of contract. An Introduction to the Law of Contract remains the ideal contract text for students of business, accounting and commerce.