Contract Law in Hong Kong

Contents

Contents Preface ix Table of Cases xi Table of Legislation xxvii Chapter 1 The Nature of Contract Law 1 OVERVIEW 1 1.1 What Contract Is 2 1.2 The Function of Contract Law 8 Chapter 2 Sources of Hong Kong Contract Law 21 OVERVIEW 21 2.1 Hong Kong Contract Law before 1997 22 2.2 The Effect of the “Handover” and the Basic Law: Hong Kong’s Present System 26 2.3 The Declaratory Theory of Judicial Precedent 32 2.4 The Continuing Inuence of English Law in Practice 34 Chapter 3 Agreement 37 OVERVIEW 37 3.1 The Signicance of Agreement 38 3.2 The Requirement of Offer and Acceptance 38 3.3 Offer Distinguished from Invitation to Treat 40 3.4 The Nature of Acceptance 47 3.5 Communication of Acceptance 52 3.6 Acceptance in Ignorance of the Offer 58 3.7 Termination of Offer 60 3.8 Certainty of Agreement 64 vi Contents Chapter 4 Consideration 73 OVERVIEW 73 4.1 The Nature of Consideration 76 4.2 Past Consideration 79 4.3 Consideration Must Move from the Promisee 80 4.4 Sufciency of Consideration 81 4.5 Performance of Existing Duty 86 4.6 Part-payment of a Debt 95 4.7 Promissory Estoppel 99 4.8 The Need for the Doctrine 106 Chapter 5 Intention to Create Legal Relations 109 OVERVIEW 109 5.1 Is Intention Necessary? 110 5.2 Domestic and Social Arrangements 112 5.3 Commercial Arrangements 115 Chapter 6 Contractual Capacity 119 OVERVIEW 119 6.1 Drunkenness and Mental Incapacity 121 6.2 Corporations 121 6.3 Minors (Infants) 122 Chapter 7 Formality 133 OVERVIEW 133 7.1 The General Rule 134 7.2 Contracts under Seal 135 7.3 Contracts in Writing or Evidenced in Writing 136 Chapter 8 Contractual Terms 145 OVERVIEW 145 8.1 Representations and Terms 146 8.2 Written Contracts: The Parol Evidence Rule 150 8.3 Implied Terms 153 8.4 Classication of Terms: Conditions, Warranties and 160 Innominate Terms 8.5 Exemption Clauses 168 Contents vii Chapter 9 Misrepresentation 191 OVERVIEW 191 9.1 The Scope of Misrepresentation 193 9.2 Rescission for Misrepresentation 203 9.3 Damages for Misrepresentation 208 9.4 Contributory Negligence 217 9.5 Exemption of Liability for Misrepresentation 218 Chapter 10 Mistake 221 OVERVIEW 221 10.1 Is a Doctrine of Mistake Necessary? 223 10.2 Types of Mistake 224 10.3 Common Mistake 225 10.4 Mutual Mistake 233 10.5 Unilateral Mistake 235 10.6 Rectication of Written Documents 242 10.7 Non Est Factum 244 10.8 Proposals for Reform 245 Chapter 11 Duress and Undue Inuence 249 OVERVIEW 249 11.1 Duress 251 11.2 Undue Inuence 262 Chapter 12 Unconscionability 283 OVERVIEW 283 12.1 Statutory Unconscionability in Hong Kong 284 12.2 Unconscionability at Common Law 287 Chapter 13 Illegal Contracts 291 OVERVIEW 291 13.1 Types of Illegal Contracts 292 13.2 Gambling Contracts 295 13.3 The Effects of Illegality 296 13.4 Contracts in Restraint of Trade 308 viii Contents Chapter 14 Termination of contracts 323 OVERVIEW 323 14.1 Termination by Agreement 324 14.2 Termination by Performance 326 14.3 Termination by Breach 330 14.4 Termination by Frustration 340 Chapter 15 Remedies for Breach of Contract 357 OVERVIEW 357 15.1 Damages 358 15.2 Equitable Remedies 383 15.3 Limitation of Actions 390 Chapter 16 Privity of Contract 393 OVERVIEW 393 16.1 The Doctrine of Privity of Contract 394 16.2 Third Party Benets 394 16.3 Third Party Burdens 401 16.4 The Relationship with Consideration 404 16.5 Proposals for Reform 404 Appendix 1 Glossary of Terms 411 Appendix 2 Important Contract Legislation: English and Hong Kong Equivalents 416 Appendix 3 Limitation Periods: English and Hong Kong Equivalents 418 Bibliography 419 Index 421 ...