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s of chancery which derived their ultimate authority from the king via the lord chancellor took precedence over the common law courts so does its body of equitable principles since the systems were merged in 1875 118 the doctrine of promissory estoppel holds that when one person gives an assurance to another the other relies on it and it would be inequitable to go back on the assurance that person will be estopped from doing so an analogue of the maxim that nobody should profit from their own wrong nemo auditur propriam turpitudinem allegans so in hughes v metropolitan railway co 119 the house of lords held that a tenant could not be ejected by the landlord for failing to keep up with his contractual repair duties because starting negotiations to sell the property gave the tacit assurance that the repair duties were suspended and in central london properties ltd v high trees house ltd 120 denning j held that a landlord would be estopped from claiming normal rent during the years of world war ii because he had given an assurance that half rent could be paid till the war was done the court of appeal went even further in a recent debt repayment case collier v p m j wright holdings ltd 121 arden lj argued that a partner who had been assured he was only liable to repay one third of the partnership s debts rather than be jointly and severally liable for the whole had relied on the assurance by making repayments and it was inequitable for the finance company to later demand full repayment of the debt hence promissory estoppel could circumvent the common law rule of foakes promissory estoppel however has been thought to be incapable of raising an independent cause of action so that one may only plead another party is estopped from enforcing their strict legal rights as a shield but cannot bring a cause of action out of estoppel as a sword 122 in australia this rule was relaxed in walton stores interstate ltd v maher where mr maher was encouraged to believe he would have a contract to sell his land and began knocking down his existing building before walton stores finally told him they did not wish to complete mr maher got generous damages covering his loss i e reliance damages but seemingly damages for loss of expectations as if there were a contract 123 yet where an assurance concerns rights over property a variant proprietary estoppel does allow a claimant to plead estoppel as a cause of action so in crabb v arun district council mr crabbe was assured he would have the right to an access point to his land by arun district council and relying on that he sold off half the property where the only existing access point was the council was estopped from not doing what they said they would 124 given the complex route of legal reasoning to reach simple solutions it is unsurprising that a number of commentators 125 as well as the principles of european contract law have called for simple abandonment of the doctrine of consideration leaving the basic requirements of agreement and an intention to create legal relations such a move would also dispense with the need for the common law doctrine of privity privity edit v t e privity of contract cases dutton v poole 1678 tomlinson v gill 1756 ambler 330 tweddle v atkinson 1861 ewhc j57 qb dunlop pneumatic tyre v selfridge co ltd 1915 ac 847 de cicco v schweizer 117 n e 807 1917 smith and snipes hall farm ltd 1949 2 kb 500 scruttons ltd v midland silicones ltd 1961 ukhl 4 beswick v beswick 1967 ukhl 2 dutton v bognor regis udc 1972 1 qb 373 jackson v horizon holidays ltd 1974 ewca civ 12 the eurymedon 1974 1 woodar investment development ltd v wimpey construction uk ltd 1980 ukhl 11 linden gardens trust v lenesta sludge 1993 ukhl 4 contracts rights of third parties act 1999 nisshin shipping co ltd v cleaves co ltd 2003 ewhc 2602 comm see privity in english law see also privity in english law and privity of contract the common law of privity of contract is a sub rule of consideration because it restricts who can enforce an agreement to those who have brought consideration to the bargain in an early case tweddle v atkinson it was held that because a son had not given any consideration for his father in law s promise to his father to pay the son 200 he could not enforce the promise 126 given the principle that standing to enforce an obligation should reflect whoever has a legitimate interest in its performance a 1996 report by the law commission entitled privity of contract contracts for the benefit of third parties recommended that while courts should be left free to develop the common law some of the more glaring injustices should be removed 127 this led to the contracts rights of third parties act 1999 under section 1 a third party may enforce an agreement if it purports to confer a benefit on the third party either individually or a member as a class and there is no expressed stipulation that the person was not intended to be able to enforce it 128 in this respect there is a strong burden on the party claiming enforcement was not intended by a third party 129 a third party has the same remedies available as a person privy to an agreement and can enforce both positive benefits or limits on liability such as an exclusion clause 130 the rights of a third party can then only be terminated or withdrawn without her consent if it is reasonably foreseeable that she would rely upon them 131 in the river douglas catchment board case 132 denning lj delivered the first of many critiques of the privity rule before crtpa 1999 the 1999 act s reforms mean a number of old cases would be decided differently today in beswick v beswick 133 while the house of lords held that mrs beswick could specifically enforce a promise of her nephew to her deceased husband to pay her 5 weekly in her capacity as administratrix of the will the 1999 act would also allow her to claim as a third party in scruttons ltd v midland silicones ltd 134 it would have been possible for a stevedore firm to claim the benefit of a limitation clause in a contract between a carrier and the owner of a damaged drum of chemicals lord denning dissented arguing for abolition of the rule and lord reid gave an opinion that if a bill of lading expressly conferred the benefit of a limitation on the stevedores the stevedores give authority to the carrier to do that and difficulties about consideration moving from the stevedore were overcome then the stevedores could benefit in the eurymedon 135 lord reid s inventive solution was applied where some stevedores similarly wanted the benefit of an exclusion clause after dropping a drilling machine the consideration being found as the stevedores performing their pre existing contractual duty for the benefit of the third party the drilling machine owner now none of this considerably technical analysis is required 136 given that any contract purporting to confer a benefit on a third party may in principle be enforced by the third party 137 given that the 1999 act preserves the promisee s right to enforce the contract as it stood at common law 138 an outstanding issue is to what extent a promisee can claim damages for a benefit on behalf of a third party if he has suffered no personal loss in jackson v horizon holidays ltd 139 lord denning mr held that a father could claim damages for disappointment beyond the financial cost of a terrible holiday experience on behalf of his family however a majority of the house of lords in woodar investment development ltd v wimpey construction uk ltd 140 disapproved any broad ability of a party to a contract to claim damages on behalf of a third party except perhaps in a limited set of consumer contracts there is disagreement about whether this will remain the case 141 difficulties also remain in cases involving houses built with defects which are sold to a buyer who subsequently sells to a third party it appears that neither the initial buyer can claim on behalf of the third party and nor will the third party be able to claim under the 1999 act as they will typically not be identified by the original contract or known in advance 142 apart from this instance relating to tort in practice the doctrine of privity is entirely ignored in numerous situations throughout the law of trusts and agency construction edit main article contractual terms in english law as the great exhibition 1851 saw the height of industrial commerce in the british empire and the depths of dickensian poverty english contract law fashioned a theory of freedom of contract or laissez faire 143 today the law aims for fairness where one contracting party e g a consumer employee or tenant is much less free due unequal bargaining power 144 if an enforceable agreement a contract exists the details of the contract s terms matter if one party has allegedly broken the agreement a contract s terms are what was promised yet it is up to the courts to construe evidence of what the parties said before a contract s conclusion and construe the terms agreed construction of the contract starts with the express promises people make to one another but also with terms found in other documents or notices that were intended to be incorporated the general rule is that reasonable notice of the term is needed and more notice is needed for an onerous term the meaning of those terms must then be interpreted and the modern approach is to construe the meaning of an agreement from the perspective of a reasonable person with knowledge of the whole context the courts as well as legislation may also imply terms into contracts generally to fill gaps as necessary to fulfil the reasonable expectations of the parties or as necessary incidents to specific contracts english law had particularly in the late 19th century adhered to the laissez faire principle of freedom of contract so that in the general law of contract people can agree to whatever terms or conditions they choose by contrast specific contracts particularly for consumers employees or tenants were built to carry a minimum core of rights mostly deriving from statute that aim to secure the fairness of contractual terms the evolution of case law in the 20th century generally shows an ever clearer distinction between general contracts among commercial parties and those between parties of unequal bargaining power 145 since in these groups of transaction true choice is thought to be hampered by lack of real competition in the market hence some terms can be found to be unfair under statutes such as the unfair contract terms act 1977 or part 2 of the consumer rights act 2015 and can be removed by the courts with the administrative assistance of the competition and markets authority incorporation of terms edit main article incorporation of terms in english law v t e incorporating contract terms oscar chess ltd v williams 1956 ewca civ 5 parker v south eastern railway company 1877 2 cpd 416 l estrange v f graucob ltd 1934 2 kb 394 chapelton v barry udc 1940 1 kb 532 j spurling ltd v bradshaw 1956 ewca civ 3 olley v marlborough court 1949 1 kb 532 mccutcheon v david macbrayne ltd 1964 ukhl 4 henry kendall ltd v william lillico ltd 1969 2 ac 31 thornton v shoe lane parking 1970 ewca civ 2 hollier v rambler motors ltd 1971 ewca civ 12 interfoto v stiletto 1987 ewca civ 6 o brien v mgn ltd 2001 ewca civ 1279 incorporation of terms in english law the promises offered by one person to another are the terms of a contract but not every representation before an acceptance will always count as a term the basic rule of construction is that a representation is a term if it looked like it was intended to be from the viewpoint of a reasonable person 146 it matters how much importance is attached to the term by the parties themselves but also as a way to protect parties of lesser means the courts added that someone who is in a more knowledgeable position will be more likely to be taken to have made a promise rather than a mere representation in oscar chess ltd v williams 147 mr williams sold a morris car to a second hand dealer and wrongly but in good faith relying on a forged log book said it was a 1948 model when it was really from 1937 the court of appeal held that the car dealer could not later claim breach of contract because they were in a better position to know the model by contrast in dick bentley productions ltd v harold smith motors ltd 148 the court of appeal held that when a car dealer sold a bentley to a customer mistakenly stating it had done 20 000 miles when the true figure was 100 000 miles this was intended to become a term because the car dealer was in a better position to know a misrepresentation may also generate the right to cancel or rescind the contract and claim damages for reliance losses as if the statement had not been made and so to get one s money back but if the representation is also a contract term a claimant may also get damages reflecting expected profits as if the contract were performed as promised though often the two measures coincide parker v south eastern rly co 149 a case from charing cross station held to incorporate terms people need to give reasonable notice of them before a contract when a contract is written down there is a basic presumption that the written document will contain terms of an agreement 150 and when commercial parties sign documents every term referred to in the document binds them 151 unless the term is found to be unfair the signed document is merely an administrative paper or under the very limited defence of non est factum 152 the rules differ in principle for employment contracts 153 and consumer contracts 154 or wherever a statutory right is engaged 155 and so the signature rule matters most in commercial dealings where businesses place a high value on certainty if a statement is a term and the contracting party has not signed a document then terms may be incorporated by reference to other sources or through a course of dealing the basic rule set out in parker v south eastern railway company 149 is that reasonable notice of a term is required to bind someone here mr parker left his coat in the charing cross railway station cloakroom and was given a ticket that on the back said liability for loss was limited to 10 the court of appeal sent this back to trial for a jury as existed at the time to determine the modern approach is to add that if a term is particularly onerous greater notice with greater clarity ought to be given denning lj in j spurling ltd v bradshaw 156 famously remarked that some clauses which i have seen would need to be printed in red ink on the face of the document with a red hand pointing to it before the notice could be held to be sufficient in thornton v shoe lane parking ltd 157 a car park ticket referring to a notice inside the car park was insufficient to exclude the parking lot s liability for personal injury of customers on its premises in interfoto picture library ltd v stiletto ltd 158 bingham lj held that...