Cavendish Publishing Limited London • Sydney • Portland, Oregon Q&A Series Commercial Law THIRD EDITION Cavendish Publishing Limited London • Sydney • Portland, Oregon Q&A Series Commercial Law THIRD EDITION Paul Dobson, LLB, Barrister Code Administrator for the Direct Selling Association and Jo Reddy, LLB, LLM, Barrister Third edition first published in Great Britain 2003 by Cavendish Publishing Limited, The Glass House, Wharton Street, London WC1X 9PX, United Kingdom Telephone: + 44 (0)20 7278 8000 Facsimile: + 44 (0)20 7278 8080 Email: info@cavendishpublishing.com Website: www.cavendishpublishing.com Published in the United States by Cavendish Publishing c/o International Specialized Book Services, 5804 NE Hassalo Street, Portland, Oregon 97213-3644, USA Published in Australia by Cavendish Publishing (Australia) Pty Ltd 3/303 Barrenjoey Road, Newport, NSW 2106, Australia © Dobson, P, Reddy, J 2003 First edition 1994 Second edition 2000 Third edition 2003 All rights reserved. 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British Library Cataloguing in Publication Data Dobson, AP (Alan Paul), 1945– Commercial law—3rd ed—(Q&A series) 1 Commercial law—England I Title II Reddy, KJ 346.4'2'07 Library of Congress Cataloguing in Publication Data Data available ISBN 1-85941-740-X 1 3 5 7 9 10 8 6 4 2 Printed and bound in Great Britain v CONTENTS Table of Cases vii Table of Statutes xvii Table of Statutory Instruments xx 1 General Questions 1 2 Description and Quality 15 3 Passing of Property and Risk 53 4 Nemo Dat Quod Non Habet 71 5 Performance and Remedies 85 6 Making and Cancelling a Credit Agreement 95 7 Default and Termination of Credit Agreements 111 8 Connected Lender Liability 131 9 General Principles of Agency 141 10 Relationship with Third Parties 169 11 Fob Contracts 201 12 Cif Contracts 233 Index 261 vii TABLE OF CASES NB: CCLR denotes Consumer Credit Law Reports which were published until 2000 in Consumer Credit Control by Bennion and Dobson, but are now published as part of Sweet & Maxwell’s Encyclopedia of Consumer Credit Law. Agricultores Federados Argentinos v Ampro SA [1965] 2 Lloyd’s Rep 757 215, 219, 229 Ailsa Craig Fishing v Malvern Fishing [1983] 1 All ER 449 30 Albermarle Supply Co v Hind [1928] 1 KB 307 128 Aldridge v Johnson (1857) 7 E & B 885 62 Aliakmon, The See Leigh and Sillavan v Aliakmon Shipping Co, The Aliakmon Allam & Co v Europa Poster Services [1968] 1 All ER 826 144 Alliance and Leicester Building Society v Babbs [1993] CCLR 77 109 Alpha Trading Ltd v Dunnshaw-Patten [1981] QB 290 165, 166 AMB Imballaggi Plastici SRL v Pacflex Ltd [1999] 2 All ER (Comm) 249 175 Andrews Bros Ltd v Singer & Co Ltd [1934] 1 KB 17 27 Andrews v Hopkinson [1957] 1 QB 229 23, 28, 150 Anglo-African Shipping Co of New York Inc v J Mortner Ltd [1962] 1 Lloyd’s Rep 610 176 Arcos Ltd v EA Ronaasen & Son [1933] AC 470 38, 230, 249 Armagas v Mundogas [1986] 2 All ER 385 174, 186, 187, 188, 189 Armour v Thyssen [1990] 3 All ER 481 55, 57 Ashington Piggeries v Hill [1972] AC 441 39, 237 Associated Distributors v Hall [1938] 2 KB 83 123 Aswan v Lupdine [1987] 1 WLR 1 34 Attorney General for Hong Kong v Reid [1994] 1 All ER 1 146 Attorney General v Leopold Walford (London) Ltd (1923) 14 Lloyd’s Rep 359 214 Automotive Financial Services v Henderson [1993] CCLR 55 104 B & P Wholesale Distributors v Marko (1953) unreported 241 Bankers Trust v State Bank of India [1991] 1 Lloyd’s Rep 587 204, 207 Barclays Bank v Quincecare Ltd [1988] FTLR 507 198 Bartlett v Sydney Marcus [1965] 1 WLR 1013 23 Beale v Taylor [1967] 1 WLR 1193 33 Bence Graphics v Fasson UK [1997] 3 WLR 205 211 Bentinck v Cromwell Engineering [1971] 1 QB 324 128 viii Table of Cases Bernstein v Pamson Motors (Golders Green) Ltd [1987] 2 All ER 22 25, 36, 91, 210 Biddell Bros v Clemens Horst & Co [1912] AC 18 252, 256 Boardman v Phipps [1966] 3 All ER 721 145, 147, 167, 182 Bolton Partners v Lambert (1889) 41 Ch D 295 170, 173 Bondina Ltd v Rollaway Shower Blinds Ltd [1986] 1 WLR 517 153 Borden v Scottish Timber Products Ltd [1981] Ch 25 58 Boston Deep Sea Fishing and Ice Co v Ansell (1888) 39 Ch D 339 250, 255, 257 Bowes v Shand (1877) 2 App Cas 455 215, 232, 249, 252, 254, 256, 258 Bowmakers v Barnet Instruments [1945] KB 65 114, 118 Bowmakers v Wycombe Motors [1946] KB 505 129 Brandt & Co v Morris & Co [1917] 2 KB 784 217 Branwhite v Worcester Works Finance [1969] 1 AC 532 98 British Airways Board v Taylor [1976] 1 WLR 13 45 British Imex Industries Ltd v Midland Bank Ltd [1958] 1 QB 542 244 Bunge & Co Ltd v Tradax England Ltd [1975] 2 Lloyd’s Rep 235 214, 239 Burrell v Jones (1819) 3 B & Ald 47 148 Burstall v Grimsdale (1906) 11 Com Cas 280 253, 256 Butterworth v Kingsway Motors [1954] 1 WLR 1286 74, 116 Cammell Laird v Manganese Bronze and Brass [1934] AC 402 23 Caparo v Dickman [1990] 2 WLR 358 189, 190 Car and Universal Finance v Caldwell [1965] 1 QB 525 80 Cehave v Bremer, The Hansa Nord [1976] 1 QB 44 25, 39 Central Newbury Car Auctions v Unity Finance [1957] 1 QB 371 76 Chartered Trust v Pitcher [1987] CCLR 71 114 Chaudry v Prabhakar [1988] 3 All ER 718 144, 197 Chubb Cash Ltd v John Crilley & Son [1983] 1 WLR 599 74 City Trust v Levy [1988] 1 WLR 1051 185 Clarkson Booker Ltd v Andjel [1964] 2 QB 775 151 Clough Mill v Martin [1985] 1 WLR 111 55, 57 Coles v Enoch [1939] 3 All ER 327 164 Collen v Wright [1857] 8 E & B 647 150, 154, 190, 191, 199 Colley v Overseas Exporters [1921] 3 KB 302 217 Collins v Associated Greyhound Racecourses Ltd [1930] 1 Ch 1 149 Cunningham, J and J v Robert A Monroe [1922] 28 Com Cas 42 221 Daun v Simmins (1879) 41 LT 783 184, 195 Davies v Sumner [1984] 1 WLR 130 28 Dawson v Dutfield [1936] 2 All ER 232 50 Table of Cases ix De Bussche v Alt [1878] 8 Ch D 286 144, 170, 172 Diamond Alkali Export Corp v Fl Bourgeois [1921] 3 KB 443 254, 256 Dimond v Lovell [2000] 2 WLR 1121 106 Director General of Fair Trading v First National Bank [2000] 2 All ER 759 11 Discount Records Ltd v Barclays Bank [1975] 1 WLR 315 207 Donald H Scott Ltd v Barclays Bank Ltd [1923] 2 KB 1 254 Donoghue v Stevenson [1932] AC 562 17 Dyster v Randall & Sons [1926] Ch 932 176 Ealing LBC v Taylor [1995] Crim LR 156 44 East v Maurer [1991] 2 All ER 733 35 Edgington v Fitzmaurice (1885) 24 Ch D 459 35 El Amria and the El Minia [1982] 2 Lloyd’s Rep 28 214 Elafi, The See Karlshamns Olje Fabriker v Eastport Navigation Corp, The Elafi Equitable Trust Co of New York v Dawson Partners Ltd (1927) 27 L1L Rep 49 203, 230, 239 Esso Petroleum v Commissioners for Customs and Excise [1976] 1 WLR 1 49 European Asian Bank v Punjab & Sind Bank (No 2) [1983] 1 WLR 642 179 Farrand v Lazarus [2002] 3 All ER 175 (DC) 44 Financings v Baldock [1963] 1 All ER 443 113, 119, 120, 127 Financings v Stimson [1962] 1 WLR 1184 97 First Energy (UK) Ltd v Hungarian International Bank [1993] 2 Lloyd’s Rep 194 186, 187, 189 Fraser v Furman [1967] 1 WLR 898 171 Frebold and Sturznickel (Trading as Panda OGH) v Circle Products Ltd (1970) 1 Lloyd’s Rep 499 211 Freeman and Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 1 All ER 680 171, 179, 182, 183, 184, 185, 187, 188, 194, 196, 197, 205 Galatia, The See Golodetz, M & Co Inc v Czarnikow Rionda Line, The Galatia Gian Singh v Banque de L’Indochine [1974] 1 WLR 1234 206 Gill and Duffus v Berger & Co [1984] AC 382 87, 244, 252 [...]... effect of the doctrine Thus, a third party can now enforce a contract where the third party is able to rely on the Contracts (Rights of Third Parties) Act 1999 This enables a third party to enforce a term of a contract if either: (a) the contract expressly provides that he may; or (b) the term purports to confer a benefit upon the third party To be able to enjoy this right, the third party must be expressly... with one concept at a time Answer Freedom of contract The law of sale of goods was originally developed by judges in deciding cases In the first Sale of Goods Act of 1893, Parliament set out to incorporate this common law into statute form and the 1893 Act, in its 10 Q & A on Commercial Law preamble, described itself as an Act to codify the law Most of the provisions of the 1893 Act are now contained,... whole area of sale of goods and related law Checklist FOURTH EDITION For the particular questions here, you will need to know: • • • • the common law and legislation relating to exclusion clauses and contracts generally; the law of sale of goods, including recent developments; recent developments in consumer law; proposed or pending changes in the law, particularly European initiatives Question 1 In recent... proposals relating to consumer law has been emanating from the organs of the European Community The result is that businesses dealing with consumers will incur considerable compliance and other costs, and they need to keep under review their trading practices to ensure compliance with a branch of the law that is changing quickly Explain and discuss 1 2 Q & A on Commercial Law Answer plan This question... developments in consumer law It is not quite a ‘write all you know about the topic’ type of question It clearly requires you to concentrate on laws which are created by the European Community, and needs an examination of recent laws and also proposed ones which have yet to be enacted One way to deal with the question is as follows First, deal with European Directives on consumer law which have recently... of Third Parties) Act 1999 has created an exception for the third party upon whom the contract purports to confer a benefit The principle of freedom of contract is still intact, but is subject to some exceptions (see the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999) The common theme is that these three notions, each derived from a body of commercial law. .. of conduct contrary to the law and, even then, could not apply to the court for an order without first using its best endeavours to secure from the trader an undertaking of future good conduct Better enforcement of the law in favour of consumers under these provisions is welcomed and does not impose costs on business other than on those who are not complying with existing law Product Liability Directive... over the internet) is also caught 6 Q & A on Commercial Law The requirements of the Regulations cover such things as: • • • • • • giving the customer specific information which is directly and permanently accessible, such as the trader’s name, geographic address, electronic address, whether prices include delivery and tax, etc; identifying the sender of any commercial communication (for example, an email... & A on Commercial Law Timeshares, Broadcasting, etc The Commission therefore is proposing that there should be one main over-arching Directive requiring traders to trade fairly (or not to trade unfairly) with consumers This Directive would be supported by codes giving guidance as to good/bad practice which would help in applying it This is, of course, all part of the drive to harmonise the law within... example, by the CBI) is against any such development in the law, but that small to medium sized businesses find the legal differences between the different Member States to be a barrier to cross-border trade General contract law In another consultation paper in 2001, the European Commission enquired about the extent to which differences in the basic law of contract of the Member States are barriers to cross-border . Oregon Q&A Series Commercial Law THIRD EDITION Cavendish Publishing Limited London • Sydney • Portland, Oregon Q&A Series Commercial Law THIRD. in Publication Data Dobson, AP (Alan Paul), 1945– Commercial law 3rd ed—(Q&A series) 1 Commercial law England I Title II Reddy, KJ 346.4'2'07