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Extra resources for Cavendish: Business Lawcards
Implied terms can be divided into three types: 28 CAVENDISH L AWCARDS Parol evidence rule If all the terms of a contract are in writing, then there is a strong presumption that no evidence supporting a different oral agreement will be permitted to vary those terms (Button v Watling (1948)). The presumption may be rebutted where the document was not intended to set out all the terms agreed on by the parties (Re SS Ardennes (1951)). Exemption and exclusion clauses An exemption clause is a term in a contract which tries to exempt, or limit, the liability of a party in breach of the agreement.
42 CAVENDISH L AWCARDS Exclusive service contracts are structured to exploit one of the parties, by controlling and limiting their output, rather than assisting them. The most famous cases involve musicians (eg, Schroeder Music Publishing Co v Macauley (1974)). 7 Discharge of contracts Discharge of contract means that the parties to an agreement are freed from their contractual obligations. A contract is discharged in one of four ways: (a) agreement; (b) (c) performance; frustration; (d) breach.
Undue influence Transactions, either contract or gifts, may be avoided where they have been entered into as a consequence of the undue influence of the person benefiting from them. The effect of undue influence is to make a contract voidable, but delay may bar the right to avoid the agreement. There are two possible situations relating to undue influence, shown in the following diagram. 40 CAVENDISH L AWCARDS BUSINESS L AW 41 Contracts in restraint of trade A contract in restraint of trade is an agreement whereby one party restricts its future freedom to engage in their trade, business, or profession.