First Principles of Business Law

Question 2.

Assume that Astrid wants to prove that what Ben said about his jars containing recycled glass became an express term of a contract for the purchase and sale of the glass jars. Does it matter that no such promise was included in the written contract?

(a) It does not matter, because the terms of a contract can be partly oral and partly written, and in such cases the courts will admit evidence of both written and orally agreed terms. Van den Esschert v Chapell will likely be followed in the present circumstances.

(b) It does matter, because if the written terms of a contract appear to be all those needed for a workable transaction, the court will not allow evidence of additional orally agreed terms. LG Thorne v Thomas Borthwick will most likely be followed in the present circumstances.

(c) It does not matter as long as the orally expressed terms in question are reasonable and fair, and provided that they do not contradict any expressly agreed terms. BP Refinery (Westernport) Pty Ltd v Shire of Hastings will most likely be followed in the present circumstances.

Quit the case study