Business Law pot

BUSINESS LAW
Fifth Edition

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BUSINESS LAW
Fifth Edition
David Kelly, PhD
Principal Lecturer in Law
Staffordshire University
Ann Holmes, M Phil, PGD
Dean of the Law School
Staffordshire University
Ruth Hayward, LLB, LLM
Senior Lecturer in Law
Staffordshire University

Fifth edition first published in Great Britain 2005 by
Cavendish Publishing Limited, The Glass House,
Wharton Street, London WC1X 9PX, United Kingdom

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© Kelly, D, Holmes, A and Hayward, R 2005
First edition 1995
Second edition 1997
Third edition 2000
Fourth edition 2002
Fifth edition 2005
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retrieval system, or transmitted, in any form or by any means, electronic, mechanical,
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reproduction outside the scope of the above should be sent to the
Rights Department, Cavendish Publishing Limited, at the address above.
You must not circulate this book in any other binding or cover
and you must impose the same condition on any acquirer.
British Library Cataloguing in Publication Data
Kelly, David, 1950–
Business law – 5th ed
1 Business law – England

2 Business law – Wales
I Title II Holmes, Ann E
III Hayward, Ruth, LLB
346.4'207
Library of Congress Cataloguing in Publication Data
Data available
ISBN 1-85941-962-3
ISBN 978-1-859-41962-5
1 3 5 7 9 10 8 6 4 2
Printed and bound in Great Britain

PREFACE
Business and commercial enterprise takes place within a legal context and, in the final
analysis, is governed and regulated by law. One of the problems facing the person
studying business activity, and the one that is specifically addressed in this book, is
the fact that business enterprise takes place within a general and wide-ranging legal
environment, but the student is required to have more than a passing knowledge of
the legal rules and procedures which impact on business activity. The difficulty lies in
acquiring an adequate knowledge of the many areas that govern such business activity.
Law students legitimately may be expected to focus their attention on the minutiae of
the law, but those studying law within, and as merely a component part of, a wider
sphere of study cannot be expected to have the same detailed level of knowledge as
law students. Nonetheless, they are expected to have a more than superficial
knowledge of various legal topics.
For the author of a business law textbook, the difficulty lies in pitching the
material considered at the appropriate level so that those studying the subject acquire
a sufficient grasp to understand law as it relates generally to business enterprise, and of
course to equip the student to pass the requisite exams. To achieve this goal, the text
must not be too specialised and focus on too small a part of what is contained in most
business law syllabuses. For example, although contract law is central to any business

law course, to study it on its own, or with a few ancillary topics, is not sufficient. Nor,
however, should the text be so wide-ranging as to provide the student with no more
than a superficial general knowledge of most of the possible interfaces between law
and business enterprise. A selection has to be made and it is hoped that this text has
made the correct one. No attempt has been made to cover all the areas within the
potential scope of business law, but it is hoped that attention has been focused on the
most important of these, without excluding any area of major importance.
Additionally, it is hoped that the material provided deals with the topics selected in as
thorough a way as is necessary.
In this fifth edition we have taken the opportunity to expand the treatment of the
company law and employment law sections. We have also been able to provide a
more considered treatment of the Human Rights Act 1998 in the light of the most
significant cases to have come before the courts since the previous edition. As usual,
we have made every effort to ensure that the text is as up to date as we can make it.
David Kelly
Ann Holmes
Ruth Hayward
February 2005


CONTENTS
Preface v
Table of Cases xix
Table of Statutes xlv
Table of Statutory Instruments lv
Conventions, Treaties and EC Legislation lix
Table of Abbreviations lxi
1 LAW AND LEGAL SOURCES 1
1.1 The nature of law 1
1.2 Categories of law 2

1.2.1 Common law and civil law 2
1.2.2 Common law and equity 2
1.2.3 Common law and statute law 6
1.2.4 Private law and public law 6
1.2.5 Civil law and criminal law 7
1.3 The Human Rights Act 1998 8
1.3.1 The structure of the Human Rights Act 1998 10
1.3.2 Cases decided under the Human Rights Act 1998 12
1.4 Sources of law 15
1.4.1 European Community 15
1.4.2 Sources of EC law 17
1.4.3 The institutions of the EU 19
1.5 Legislation 23
1.5.1 The legislative process 23
1.5.2 Types of legislation 25
1.5.3 Delegated legislation 26
1.5.4 Advantages of the use of delegated legislation 27
1.5.5 Disadvantages in the prevalence of
delegated legislation 28
1.5.6 Control over delegated legislation 28
1.6 Case law 29
1.6.1 The meaning of precedent 29
1.6.2 The hierarchy of the courts and the setting
of precedent 31
1.6.3 The nature of precedent 33
1.6.4 Evaluation 34
1.6.5 Advantages of case law 34
1.6.6 Disadvantages of case law 35
1.6.7 Case study 36
1.7 Statutory interpretation 37

1.7.1 Problems in interpreting legislation 37
1.7.2 Rules of interpretation 38
1.7.3 Aids to construction 39
1.7.4 Presumptions 40
1.8 Custom 41
1.8.1 Books of authority 42
1.9 Law reform 42
Summary of Chapter 1 45

viii Business Law
2 THE CRIMINAL AND CIVIL COURTS 49
2.1 Introduction 49
2.2 The criminal court structure 49
2.3 Magistrates’ courts 51
2.3.1 Powers of magistrates’ courts 51
2.4 The Crown Court 52
2.4.1 Jurisdiction 52
2.5 Criminal appeals 52
2.5.1 Appeals from magistrates’ courts 53
2.5.2 Appeals from the Crown Court 53
2.5.3 The Criminal Justice Act 2003 54
2.6 House of Lords 55
2.7 Judicial Committee of the Privy Council 56
2.8 The civil court structure 56
2.9 Magistrates’ courts 56
2.10 The Woolf Reforms to the civil justice system 56
2.10.1 Judicial case management 57
2.10.2 Pre-action protocols 57
2.10.3 Alternatives to going to court 58
2.10.4 Allocation to track (Pt 26 of the CPR 1998) 58

2.11 County courts 59
2.12 The High Court of Justice 59
2.12.1 The Queen’s Bench Division 60
2.12.2 The Queen’s Bench Divisional Court 60
2.12.3 The Chancery Division 60
2.12.4 The Chancery Divisional Court 60
2.12.5 The Family Division 60
2.12.6 The Family Divisional Court 61
2.12.7 Specialist courts 61
2.13 The Court of Appeal (Civil Division) 61
2.13.1 The Civil Procedure Rules 61
2.14 House of Lords 62
2.15 Judicial Committee of the Privy Council 62
2.16 The European Court of Justice 62
2.17 The European Court of Human Rights 63
Summary of Chapter 2 67
3 ALTERNATIVE DISPUTE RESOLUTION 69
3.1 Introduction 69
3.2 Arbitration 71
3.2.1 Arbitration procedure 71
3.2.2 Relationship to ordinary courts 75
3.2.3 Advantages 75
3.2.4 The small claims track (Pt 27 of the CPR 1998) 76
3.2.5 Small claims procedure 77
3.2.6 Evaluation 78
3.2.7 Arbitration under codes of conduct 79

Contents ix
3.3 Administrative tribunals 80
3.3.1 Tribunals and courts 81

3.3.2 Composition of tribunals 82
3.3.3 Statutory tribunals 82
3.3.4 Domestic tribunals 84
3.3.5 Advantages of tribunals 84
3.3.6 Disadvantages of tribunals 85
3.3.7 The Leggatt Review of Tribunals 87
3.4 Ombudsman 89
3.4.1 Procedure 90
3.4.2 Evaluation 94
3.5 Mediation and conciliation 95
3.5.1 Mediation 95
3.5.2 Mediation in divorce 96
3.5.3 Conciliation 98
Summary of Chapter 3 101
4 THE NATURE AND FUNCTION OF CONTRACT LAW 103
4.1 Introduction 103
4.2 Definition 104
4.3 Formalities 104
4.4 The legal effect of agreement 105
Summary of Chapter 4 107
5 THE FORMATION OF A CONTRACT 109
5.1 Introduction 109
5.2 Offer 109
5.2.1 Identifying an offer 109
5.2.2 Offers to particular people 112
5.2.3 Knowledge of the offer 112
5.2.4 Rejection of offers 112
5.2.5 Revocation of offers 113
5.2.6 Lapse of offers 114
5.3 Acceptance 115

5.3.1 Form of acceptance 115
5.3.2 Communication of acceptance 116
5.3.3 Tenders 117
5.4 Offer, acceptance and the classical model of contract 118
5.5 Consideration 119
5.5.1 Forbearance 119
5.5.2 Types of consideration 120
5.5.3 Rules relating to consideration 121
5.5.4 Performance of existing duties 122
5.5.5 Consideration in relation to the waiver of existing rights 124
5.5.6 Promissory estoppel 125
5.5.7 Promissory estoppel after Williams v Roffey Bros (1990) 127
5.6 Privity of contract 127
5.6.1 Contracts (Rights of Third Parties) Act 1999 129

x Business Law
5.7 Capacity 130
5.7.1 Minors 130
5.7.2 Mental incapacity and intoxication 132
5.8 Intention to create legal relations 132
5.8.1 Domestic and social agreements 133
5.8.2 Commercial agreements 133
5.8.3 Collective agreements 134
5.8.4 Letters of comfort 134
Summary of Chapter 5 137
6 CONTENTS OF A CONTRACT 139
6.1 Contract terms and mere representations 139
6.2 Conditions, warranties and innominate terms 140
6.2.1 Conditions 140
6.2.2 Warranties 140

6.2.3 Distinction between conditions and warranties 140
6.2.4 Innominate terms 141
6.3 Implied terms 141
6.3.1 Terms implied by statute 141
6.3.2 Terms implied by custom 142
6.3.3 Terms implied by the courts 142
6.4 The parol evidence rule 142
6.5 Exemption or exclusion clauses 143
6.5.1 Has the exclusion clause been incorporated
into the contract? 143
6.5.2 Does the exclusion clause effectively cover
the breach? 145
6.5.3 What effect does the Unfair Contract Terms Act 1977
have on the exclusion clause? 146
6.5.4 The Unfair Terms in Consumer Contracts Regulations 149
Summary of Chapter 6 151
7 VITIATING FACTORS 153
7.1 Introduction 153
7.2 Mistake 153
7.2.1 Common mistake 154
7.2.2 Mutual mistake 155
7.2.3 Unilateral mistake 156
7.2.4 Mistake in respect of documents 157
7.3 Misrepresentation 158
7.3.1 There must be a false statement of fact 158
7.3.2 The statement must actually induce the contract 160
7.3.3 Types of misrepresentation 160
7.3.4 Remedies for misrepresentation 162
7.4 Duress 165
7.5 Undue influence 166

7.5.1 Special relationships 166
7.5.2 No special relationship 167
7.5.3 Inequality of bargaining power 168

Contents xi
7.6 Contracts and public policy 168
7.6.1 Illegal contracts 168
7.6.2 Void contracts 168
7.6.3 Contracts in restraint of trade 169
Summary of Chapter 7 173
8 DISCHARGE OF A CONTRACT 175
8.1 Introduction 175
8.2 Discharge by agreement 175
8.3 Discharge by performance 175
8.3.1 Tender of performance 176
8.4 Discharge by frustration 177
8.4.1 Situations in which the doctrine of frustration
does not apply 178
8.4.2 The effect of frustration 179
8.4.3 Law Reform (Frustrated Contracts) Act 1943 179
8.5 Discharge by breach 180
8.5.1 Effect of breach 180
8.5.2 Anticipatory breach 180
8.6 Remedies for breach of contract 182
8.7 Damages 182
8.7.1 Remoteness of damage 183
8.7.2 Measure of damages 184
8.7.3 Liquidated damages and penalties 186
8.7.4 Quantum meruit 187
8.8 Specific performance 188

8.9 Injunction 188
8.10 Action for the agreed contract price 189
8.11 Repudiation 189
8.12 Quasi-contractual remedies 189
Summary of Chapter 8 191
9 SALE AND SUPPLY OF GOODS 193
9.1 Introduction 193
9.2 The Sale of Goods Act 1979 193
9.2.1 Definition 194
9.2.2 Form of the agreement 194
9.2.3 The price of the goods 194
9.2.4 Seller’s implied obligations 195
9.2.5 Delivery and payment obligations 203
9.2.6 Seller’s personal remedies 204
9.2.7 Seller’s real remedies 204
9.2.8 Buyer’s remedies 206
9.2.9 Acceptance 208
9.2.10 Exclusion and limitation of liability 209
9.2.11 Guarantees 211
9.2.12 Transfer of property and risk 212
9.2.13 Sale by a person who is not the owner 216

xii Business Law
9.3 The Supply of Goods and Services Act 1982 219
9.3.1 Implied terms 219
9.3.2 Exclusion clauses 220
9.4 The Consumer Protection (Distance
Selling) Regulations 2000 220
9.4.1 Application 220
9.4.2 Main provisions 220

9.5 The Consumer Protection Act 1987 221
9.5.1 Introduction 221
9.5.2 Meaning of ‘producer’ 222
9.5.3 ‘Defective’ product 222
9.5.4 Extent of liability 223
9.5.5 Exclusion of liability 223
9.5.6 Defences 223
9.5.7 Limitations on claims 224
9.6 Criminal liability 224
9.6.1 Introduction 224
9.6.2 Part II of the Consumer Protection Act 1987 224
9.6.3 The General Product Safety Regulations 1994 224
9.6.4 Misleading price indications 225
9.6.5 The Trade Descriptions Act 1968 226
Summary of Chapter 9 229
10 NEGLIGENCE 233
10.1 Introduction 233
10.2 Elements of the tort 234
10.3 Duty of care 234
10.4 Nervous shock 237
10.5 Economic loss 241
10.6 Negligent misstatements 242
10.7 Professional negligence 243
10.7.1 Accountants and auditors 244
10.7.2 Lawyers 245
10.7.3 Surveyors 246
10.8 Breach of the duty of care 247
10.9 Res ipsa loquitur 249
10.10 Causation 250
10.10.1 The ‘but for’ test 250

10.10.2 Novus actus interveniens 252
10.11 Remoteness of damage 254
10.12 Defences 255
10.12.1 Contributory negligence 255
10.12.2 Volenti non fit injuria 256
10.13 Limitation of claims 256
Summary of Chapter 10 257
11 AGENCY 261
11.1 Introduction 261
11.2 Definition of ‘agency’ 261

Contents xiii
11.3 Creation of agency 262
11.3.1 Express appointment 263
11.3.2 Ratification 263
11.3.3 Implication 264
11.3.4 Necessity 264
11.3.5 Estoppel 265
11.4 The authority of an agent 265
11.4.1 Actual authority 265
11.4.2 Apparent authority 266
11.4.3 Warrant of authority 266
11.5 The relationship of principal and agent 267
11.5.1 The duties of agent to principal 267
11.5.2 The rights of an agent 269
11.5.3 Commercial Agents (Council Directive)
Regulations 1993 269
11.6 Relations with third parties 271
11.6.1 Where the principal’s existence is disclosed 271
11.6.2 Where the principal’s existence is not disclosed 272

11.6.3 Payment by means of an agent 272
11.6.4 Breach of warrant of authority 273
11.6.5 Liability in tort 273
11.7 Termination of agency 273
11.7.1 Termination by the parties 273
11.7.2 Termination by operation of law 274
Summary of Chapter 11 275
12 PARTNERSHIP LAW 279
12.1 Introduction 279
12.2 The Partnership Acts 279
12.2.1 Standard partnerships 279
12.2.2 Limited partnerships 279
12.2.3 Limited liability partnerships 280
12.3 Definition of ‘partnership’ 280
12.3.1 Types of partners 282
12.4 The legal status of a partnership 283
12.4.1 Legal personality 283
12.4.2 Illegal partnerships 284
12.4.3 Capacity 284
12.5 Formation of a partnership 285
12.5.1 The partnership agreement 285
12.5.2 Alteration of the partnership agreement 285
12.5.3 The firm’s name 286
12.5.4 The Business Names Act 1985 286
12.5.5 Passing off 286
12.5.6 Arbitration clauses 287
12.6 The relationship between partners 287
12.6.1 Duties of partners 287
12.6.2 Rights of partners 288
12.6.3 Partnership property 290

12.6.4 Assignment of a share in a partnership 291

xiv Business Law
12.7 The relationship between partners and outsiders 291
12.7.1 The authority of partners to bind the firm 292
12.7.2 The nature of partners’ liability 292
12.7.3 The liability of incoming and outgoing partners 293
12.7.4 Partnership by estoppel 294
12.8 Dissolution and winding up of the partnership 294
12.8.1 Grounds for dissolution 295
12.8.2 Dissolution and winding up 296
12.8.3 Treatment of assets on dissolution 296
12.8.4 Bankruptcy of partners 297
12.9 Limited liability partnerships 298
12.9.1 Legal personality and limited liability 299
12.9.2 Creation 299
12.9.3 Membership 300
12.9.4 Disclosure requirements 300
12.9.5 Relationship between members and the
limited liability partnership 301
12.9.6 Relationship between members 301
12.9.7 Relationship between members and third parties 301
12.9.8 Creditor protection 301
12.9.9 Taxation 302
12.9.10 Insolvency and winding up 302
12.9.11 The future of the limited liability partnership 303
Summary of Chapter 12 305
13 COMPANY LAW 309
13.1 Introduction 309
13.2 Corporations and their legal characteristics 309

13.2.1 Types of corporation 309
13.2.2 The doctrine of separate personality 310
13.2.3 The effects of incorporation 311
13.2.4 Lifting the veil of incorporation 313
13.3 Types of companies 314
13.3.1 Limited and unlimited companies 314
13.3.2 Public and private companies 315
13.3.3 Parent and subsidiary companies 317
13.3.4 Small, medium and large companies 317
13.3.5 Overseas companies 318
13.4 Formation of companies 318
13.4.1 Registration 318
13.4.2 Commencement of business 319
13.4.3 Re-registration 319
13.5 The constitution of the company 320
13.5.1 The memorandum of association 320
13.5.2 The articles of association 322
13.5.3 Effect of memorandum and articles 323
13.5.4 Class rights 324

Contents xv
13.6 Capital 325
13.6.1 Share capital 325
13.6.2 Types of share capital 326
13.6.3 Types of shares 327
13.6.4 Issue of shares 328
13.6.5 Payment for shares 328
13.6.6 Capital maintenance 330
13.6.7 Loan capital 333
13.7 Directors 337

13.7.1 The position of directors 337
13.7.2 Appointment of directors 338
13.7.3 Removal of directors 339
13.7.4 Company Directors Disqualification Act 1986 339
13.7.5 Directors’ powers 343
13.7.6 Directors’ duties 344
13.8 Company secretary 347
13.8.1 Duties of company secretaries 348
13.8.2 Powers of company secretaries 348
13.9 Company auditor 348
13.10 Company meetings 350
13.10.1 Types of meetings 351
13.10.2 Calling meetings 351
13.10.3 Notice of meetings 352
13.10.4 Agenda 352
13.10.5 Types of resolutions 352
13.10.6 Quorum 354
13.10.7 Votes 355
13.10.8 Proxies 355
13.10.9 Chairman 355
13.10.10Minutes 355
13.11 Majority rule and minority protection 355
13.11.1 Common law – fraud on the minority 356
13.11.2 Statutory protection 358
13.11.3 Investigations 361
13.12 Winding up and administration orders 365
13.12.1 Winding up 365
13.12.2 Order of payment of company debts 367
12.12.3 Administration orders 368
13.13 Insider dealing 371

13.13.1 The Criminal Justice Act 1993 372
13.13.2 The reality of insider dealing 374
13.14 Electronic communications 375
13.15 The Companies (Audit, Investigations and Community
Enterprise) Act 2004 375
13.15.1 Independence of auditors 375
13.15.2 Powers of auditors 376
13.15.3 Powers of investigation 376
13.15.4 Directors’ indemnity 377
13.15.5 Community interest companies 377
Summary of Chapter 13 379

xvi Business Law
14 INDIVIDUAL EMPLOYMENT RIGHTS (1):
THE CONTRACT OF EMPLOYMENT 385
14.1 Introduction 385
14.2 Contract of employment 386
14.2.1 Control test 387
14.2.2 Integration test 387
14.2.3 Multiple test 388
14.2.4 Part time workers 393
14.3 Loaning or hiring out employees 394
14.4 Continuity: periods away from work 395
14.5 Industrial disputes 396
14.6 Formation of the contract of employment 397
14.6.1 Written statement of terms 397
14.6.2 Terms 400
14.6.3 National minimum wage 401
14.6.4 Implied terms 404
14.6.5 Duties imposed on the employer 405

14.6.6 Duties imposed on the employee 409
Summary of Chapter 14 413
15 INDIVIDUAL EMPLOYMENT RIGHTS (2):
EQUAL PAY AND DISCRIMINATION 415
15.1 Introduction 415
15.2 European Community law 415
15.3 Equality clause 417
15.3.1 Claiming equality 417
15.3.2 Comparator 419
15.3.3 Grounds of claim 419
15.3.4 Equal value procedure 421
15.3.5 Remedies 423
15.4 Sex and race discrimination 424
15.4.1 EC law 424
15.4.2 Who is protected? 427
15.5 Types of unlawful discrimination 428
15.5.1 Direct discrimination 429
15.5.2 Sexual and racial harassment 431
15.5.3 Discrimination and pregnancy 432
15.5.4 Sexual orientation 434
15.5.5 Indirect discrimination 435
15.5.6 Victimisation 438
15.6 Scope of protection 439
15.6.1 Genuine occupational qualifications 439
15.7 Bringing a claim 440
15.8 Remedies 440
15.9 The Equal Opportunities Commission and the
Commission for Racial Equality 441
15.10 Disability discrimination 442
Summary of Chapter 15 447

Contents xvii
16 INDIVIDUAL EMPLOYMENT RIGHTS (3): TERMINATION 451
16.1 Introduction 451
16.2 Dismissal for fundamental breach or
wrongful dismissal 452
16.2.1 Notice 452
16.2.2 Summary dismissal for fundamental breach 452
16.3 Wrongful dismissal 453
16.4 Unfair dismissal 454
16.4.1 Who qualifies under the Employment Rights Act 1996? 455
16.5 Claims 456
16.6 Effective date of termination 457
16.7 What is meant by dismissal? 457
16.7.1 Constructive dismissal 459
16.8 Reasons for the dismissal 461
16.9 Fair dismissals 462
16.9.1 Capability or qualifications 464
16.9.2 Conduct 465
16.9.3 Redundancy 466
16.9.4 Statutory restrictions (s 98(2)(d) of the
Employment Rights Act 1996) 467
16.9.5 Some other substantial reason 467
16.10 Special situations 468
16.11 Remedies 470
16.11.1 Reinstatement 470
16.11.2 Re-engagement 470
16.11.3 Compensation 470
16.12 Redundancy 473
16.12.1 Qualifications 473

16.12.2 Dismissal 473
16.12.3 Dismissals for reasons of redundancy 475
16.12.4 Lay-off and short time (ss 147–49 of the
Employment Rights Act 1996) 478
16.12.5 Change in ownership and transfer of undertakings 478
16.12.6 Offer of alternative employment 481
16.12.7 Calculation of redundancy payment 482
16.12.8 Procedure for handling redundancies 483
16.12.9 Notification of redundancies to the Secretary of State 484
Summary of Chapter 16 485
17 EMPLOYERS’ LIABILITY 489
17.1 Introduction 489
17.2 Duty of care 489
17.2.1 Scope of the employer’s duty 490
17.2.2 Competent fellow employees 491
17.2.3 Safe plant and appliances 492
17.2.4 Safe place of work 493
17.2.5 Safe system of work 494
17.3 Breach of duty 496
17.4 Causation and resultant damage 497
17.5 Remedies and defences 498

xviii Business Law
17.6 Vicarious liability 498
17.6.1 Meaning of vicarious liability 498
17.6.2 Employer/employee relationship 499
17.6.3 Scope of vicarious liability 499
17.6.4 Course of employment 499
17.6.5 Outside the course of employment 503
17.7 Principal and agent 504

17.8 Employer and independent contractor 504
Summary of Chapter 17 507
18 CONSUMER CREDIT 509
18.1 Introduction 509
18.1.1 Examples of credit agreements 509
18.1.2 The terminology of the Consumer Credit Act 1974 510
18.1.3 Agreements within the scope of the Consumer Credit Act 1974 510
18.1.4 Types of regulated consumer credit agreements 513
18.1.5 Exempt and partially exempt agreements 515
18.2 Licensing 516
18.3 Promotion of credit agreements 518
18.3.1 Introduction 518
18.3.2 Canvassing offences 518
18.3.3 Advertising of credit 518
18.3.4 Adequacy of protection 519
18.4 Pre-contract protection of the consumer 520
18.4.1 Introduction 520
18.4.2 The Consumer Credit (Agreements)
Regulations 1983 520
18.4.3 Copies of regulated agreements (ss 62 and 63
of the Consumer Credit Act 1974) 521
18.5 Protecting the debtor after the contract is made 522
18.5.1 Extortionate credit bargains (ss 137–40 of the
Consumer Credit Act 1974) 522
18.5.2 Disclosure of information 523
18.5.3 The debtor’s right to cancel the agreement 523
18.5.4 The debtor’s right to terminate the agreement 525
18.5.5 The creditor’s right of termination 525
18.5.6 Protected goods 527
18.5.7 Action to recover possession of protected goods 527

18.5.8 Early settlement of debts 528
18.6 Defective goods acquired on credit terms 528
18.7 The dealer/supplier as agent of the
creditor – a summary 529
Summary of Chapter 18 531
Further Reading 533
Index 539

TABLE OF CASES
A Company, Re (003843 of 1986) (1987) BCLC 562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .361
A v Chief Constable of West Yorkshire Police [2002] IRLR 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .435
A & Others v National Blood Authority [2001] 3 All ER 298 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222
Abadeh v British Telecommunications plc [2001] IRLR 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .444
Aberdeen Railway Co v Blaikie (1854) 1 Macq 461 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345
Abler & Others v Sodexho MM Catering Gesellschaft mbH [2004] IRLR 168 . . . . . . . . . . . . . . .480, 488
Abouzaid v Mothercare (UK) Ltd [2000] All ER (D) 2436 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223
Adams v Cape Industries plc [1990] 2 WLR 657 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .313
Adams v GKN Sankey [1980] IRLR 416, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .457
Adams v Lindsell (1818) 1 B & Ald 681; (1818) 106 ER 250 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
Adamson v B and L Cleaning Services Ltd [1995] IRLR 193 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .410
Addie & Sons (Collieries) v Dumbreck [1929] AC 358 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Adler v George [1964] 2 QB 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Ailsa Craig Fishing Co Ltd v Malvern Fishing Co Ltd [1983] 1 WLR 964 . . . . . . . . . . . . . . . . . . . . . . .149
Ainsworth v Glass Tubes & Components Ltd
[1977] IRC 347; [1977] IRLR 74, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .419
Alan (WJ) & Co v El Nasr Export and Import Co [1972] 2 All ER 127 . . . . . . . . . . . . . . . . . . . . . . . . . .126
Albert v Motor Insurers’ Bureau [1971] 2 All ER 1345; [1971] 3 WLR 291, HL . . . . . . . . . . . . . . . . . . .133
Alcock & Others v Chief Constable of
South Yorkshire [1991] 4 All ER 907 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .239, 241, 258, 490
Aldred v Nacanco [1987] IRLR 292 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .501, 502, 508

Alec Lobb (Garages) Ltd
v Total Oil (Great Britain) Ltd [1985] 1 All ER 303 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171
Alexander v Midland Bank plc [1999] IRLR 724 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .494
Alexander v Standard Telephone and Cables Ltd (No 2) [1991] IRLR 286 . . . . . . . . . . . . . . . . . . . . . .400
Alexandrou v Oxford [1993] 4 All ER 328 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .237
Alfred McAlpine Construction Ltd v Panatown Ltd [2002] 4 All ER 97 . . . . . . . . . . . . . . . . . . . . . . . .128
Allonby v Accrington & Rossendale College [2004] IRLR 224 . . . . . . . . . . . . . . . . . . . . . . . . . . . .418, 447
Allwood v William Hill Ltd [1974] IRLR 258, IT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .466, 486
Aluminium Industrie Vassen BV v Romalpa Aluminium Ltd
[1976] 1 WLR 676; [1976] 2 All ER 552 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .206
Amalgamated Investment & Property Co Ltd
v John Walker & Sons Ltd [1977] 1 WLR 164, CA; [1976] 3 All ER 509 . . . . . . . . . . . . . . . . . . . . . .153
Anchor Line (Henderson Bros) Ltd, Re [1937] Ch 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
Andrews v Singer [1934] 1 KB 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Angestelltenbetriebstrat der Wiener Gebietskrankenkasse
v Wiener Gebietskrankenkasse [1999] IRLR 804 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .416
Anns v Merton LBC [1978] AC 728 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235, 236, 237, 242, 257
Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 . . . . . . . . . . . . . . . . . . . . . . . . . .74
Anya v University of Oxford [2001] IRLR 377 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .430
Arbuckle v Taylor (1815) 3 Dow 160 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293
Archer v Stone [1898] 78 LT 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272
Archibald v Fife Council [2004] UKHL 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .443, 450
Arcos Ltd v Ronaasen & Son [1933] AC 470 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197
Ardennes, SS, Re [1951] 1 KB 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
Armhouse Lee Ltd v Chappell (1996) The Times, 7 August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
Arnold v Beecham Group Ltd [1982] ICR 744; [1982] IRLR 307, EAT . . . . . . . . . . . . . . . . . . . . . . . . . .420
Arsenal Football Club plc v Reed [2003] 1 CMLR 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Arthur JS Hall & Co v Simons [2000] 3 All ER 673 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Ashbury Railway Carriage and Iron Co Ltd v Riche [1875] LR 7 HL 653 . . . . . . . . . . . . . . . . . . . . . . .321

xx Business Law
Ashington Piggeries v Christopher Hill Ltd [1972] AC 441 . . . . . . . . . . . . . . . . . . . . . . . . . . .197, 201, 202
Associated Japanese Bank (International)
v Credit du Nord SA [1988] 3 All ER 902; (1988) 138 NLJ 109 . . . . . . . . . . . . . . . . . . . . . . . . .154, 155
Astec (BSR) plc, Re [1998] 2 BCLC 556 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .358, 361
Astley v Celtic Ltd [2002] IRLR 629 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .479
Aswan Engineering Establishment v Lupdine [1987] 1 WLR 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199
Atlantic Baron, The (1979)
See North Ocean Shipping Co v Hyundai Construction Co (The Atlantic Baron)—
Atlantic Lines and Navigation Co Inc v Hallam (1992) unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . .162
Atlas Express v Kafco [1990] 9 Tr LR 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165
Attia v British Gas [1987] 3 All ER 455 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .241
Attorney General’s Reference (No 1 of 1988) [1989] AC 971 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Attwood v Small (1838) 6 Cl & Fin 232; [1835–42] All ER Rep 258, HL . . . . . . . . . . . . . . . . . . . . .160, 168
Avery v Bowden (1856) 5 E & B 714 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181
Avon Finance Co Ltd v Bridger [1985] 2 All ER 281, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158
Aziz v Trinity Street Taxis Ltd [1988] IRLR 204 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .439
Badamoody v UK Central Council for Nursing, Midwifery
and Health Visiting [2002] IRLR 288 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .429
Badeck & Others [2000] IRLR 432 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .426
Bailey v HSS Alarms Ltd (2000) The Times, 20 June, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183
Bain v Bowles [1991] IRLR 356; (1991) The Times, 24 April, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .428
Baker v Willoughby [1970] AC 467 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Balfour v Balfour [1919] 2 KB 571 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133
Balfour v Barty-King [1957] 1 All ER 156 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .505, 508
Balfron Trustees Ltd v Peterson [2001] IRLR 758 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .503
Bamford v Bamford [1970] Ch 212 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .328, 345
Bannerman v White (1861) 10 CBNS 844; (1861) 142 ER 685 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Banque Financière de la Cité v Westgate Insurance Co Ltd [1990] 2 All ER 947 . . . . . . . . . . . . . . . . . .243
Barber v Guardian Royal Exchange

Assurance Group [1990] ICR 616; [1990] IRLR 240 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .416, 447
Barclays Bank plc v Coleman [2000] 3 WLR 405; [2001] 4 All ER 449, HL . . . . . . . . . . . . . . . . . . . . . . .167
Barclays Bank plc v O’Brien [1993] 4 All ER 417 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
Barker v Saint Gobain Pipelines plc [2004] EWCA Civ 545 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .497, 507
Barnett v Chelsea and Kensington HMC [1969] 1 QB 4282 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Barrett McKenzie & Co Ltd v Escada (UK) Ltd (2001) The Times, 15 May . . . . . . . . . . . . . . . . . .270, 271
Barton v Armstrong [1975] AC 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165
Barton v County Natwest Bank [1999] Lloyd’s Rep Banking 408, CA . . . . . . . . . . . . . . . . . . . . . . . . . .160
Barton v Investec Henderson, Crosthwaite Securities Ltd [2003] IRLR 33 . . . . . . . . . . . . . . . . . .436, 448
Baynton v Sauras General Engineers Ltd [1999] IRLR 604 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .442
BBC v Ioannou [1975] QB 781; [1975] ICR 267 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .459
Beale v Taylor [1967] 1 WLR 1193; [1967] 3 All ER 253 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196
Bell v Lever Bros Ltd [1932] AC 161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154
Bellinger v Bellinger [2003] 2 All ER 593 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
Bentinck Ltd v Cromwell Engineering [1971] 1 QB 324 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .527
Bentley v Craven (1853) 18 Beav 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .288
Benveniste v University of Southampton [1989] ICR 617; [1989] IRLR 122, CA . . . . . . . . . . . . . . . . . .423
Bernstein v Pamsons Motors (Golders Green) Ltd [1987] 2 All ER 22 . . . . . . . . . . . . . . . . . . . . . .199, 209
Berriman v Delabole Slate Ltd [1985] ICR 564; [1985] IRLR 305, CA . . . . . . . . . . . . . . . . . . . . . . . . . . .480
Beswick v Beswick [1967] 2 All ER 1197 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

Table of Cases xxi
Bettany v Royal Doulton (UK) Ltd (1993) 213 HSIB 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .494, 507
Bettini v Gye (1876) 1 QBD 183; [1874–80] All ER Rep 242 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140
Betts v Brintel Helicopters and KLM [1996] IRLR 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .480
Bilka-Kaufhaus GmbH v Karin Weber von Hartz
[1986] 2 CMLR 701; [1986] 5 ECR 1607 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .422
Birch and Humber v University of Liverpool [1985] IRLR 165 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .451
Bird Precision Bellows Ltd, Re [1984] Ch 419; [1984] 2 WLR 869 . . . . . . . . . . . . . . . . . . . . . . . . . .339, 360
Bisset v Wilkinson [1927] AC 177; [1926] All ER Rep 343 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159

Blackman v Post Office [1974] ICR 151; [1974] ITR 122 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .464
Blaik v Post Office [1994] IRLR 280 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .425
Bland v Stockport CC (1992) unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491
BLCT Ltd v J Sainsbury plc [2003] EWCA Civ 884 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Blisset v Daniel (1853) 10 Hare 493 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289
Blyth v Birmingham Waterworks Co (1856) 11 Ex 781 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247
Boardman v Phipps [1967] 2 AC 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .268
Bolam v Friern HMC [1957] 2 All ER 118 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Bolitho v City and Hackney HA [1998] AC 232 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Bolton v Mahadeva [1972] 2 All ER 1322; [1972] 1 WLR 1009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Bolton v Stone [1951] AC 850 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247, 258
Bonser v RJW Mining (UK) Ltd [2003] EWCA Civ 1296 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .495, 507
Booth v United States of America [1999] IRLR 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .395
Borlands Trustees v Steel [1901] 1 Ch 278 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .325, 380
Boston Deep Sea Fishing & Ice Co Ltd v Ansell (1957) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .268
Boulton v Jones (1857) 2 H & N 564; (1857) 157 ER 232; (1857) 27 LJ Ex 117 . . . . . . . . . . . . . . . . . . . . .112
Boulton and Paul Ltd v Arnold [1994] IRLR 532, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .466
Bourhill v Young [1943] AC 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236, 238, 257
Bovis Construction (Scotland) Ltd v Whatlings Construction Ltd
[1995] NPC 153 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Boyo v London Borough of Lambeth [1995] IRLR 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .452
Bracebridge Engineering Ltd v Darby [1990] IRLR 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .408, 461
Bradbury v Morgan (1862) 1 H & C 249 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114
Bradford v Robinson Rentals Ltd [1967] All ER 267 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .492, 507
Brady v Brady [1989] AC 755 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333
Bramhill and Bramhill v Edwards and Edwards [2004] EWCA Civ 403 . . . . . . . . . . . . . . . . . . . . . . . .200
Briggs v North Eastern Education and Library Board [1990] IRLR 181, NICA . . . . . . . . . . . . . . . . . .437
Brimnes, The [1975] QB 929; [1974] 3 WLR 613; [1974] 3 All ER 88, CA . . . . . . . . . . . . . . . . . . . . . . . . .117
Brinkibon Ltd v Stahag Stahl und Stahlwarenhandelsgesellschaft mbH
[1983] 2 AC 34; [1982] 2 WLR 264; [1982] 1 All ER 293, HL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117

British Aerospace plc v Green [1995] ICR 1006; [1995] IRLR 433 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .484
British Aircraft Corp v Austin [1978] IRLR 322, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .460
British Coal Corp v Smith [1996] ICR 515; [1996] 3 All ER 97, HL . . . . . . . . . . . . . . . . . . . . . . . . .418, 447
British Home Stores Ltd v Burchell [1978] IRLR 379 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .408
British Nursing Association v Inland Revenue [2001] IRLR 659 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .403
British Reinforced Concrete Engineering Co Ltd v Schleff [1921] 2 Ch 563 . . . . . . . . . . . . . . . . . . . . . .170
British Syphon Co Ltd v Homewood [1956] 1 WLR 1190 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .412, 414
Britton v Commissioners of Customs & Excise (1986) VATTR 209 . . . . . . . . . . . . . . . . . . . . . . . . .281, 282
Brogan v United Kingdom (1989) 11 EHRR 117 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Brogden v Metropolitan Railway Co (1877) 2 App Cas 666 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115, 119
Bromley v H and J Quick Ltd [1988] ICR 623; [1988] IRLR 249, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . .420
Brown v Advocate General for Scotland [2001] 2 WLR 817 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

xxii Business Law
Brown v British Abrasive Wheel Co [1919] 1 Ch 290 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .323
Brown v Knowsley BC [1986] IRLR 102, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .459
Brown v Rentokil Ltd [1998] IRLR 445 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .433
Brown v Stuart Scott and Co [1981] ICR 166, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .462
Brown and Royal v Cearn and Brown Ltd (1985) unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .422
Brown & Sons Ltd v Craiks Ltd [1970] 1 All ER 823 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200
Brunnhofer v Bank der Österreichischen Postsparkasse [2001] IRLR 571 . . . . . . . . . . . . . . . . . . .417, 422
Bull v Pitney-Bowes [1966] 3 All ER 384 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .411
Bunge Corp v Tradax Export SA
[1981] 2 All ER 513; [1980] 1 Lloyd’s Rep 294, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
Burdis v Livsey [2002] EWCA Civ 510 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .512
Burton v De Vere Hotels Ltd [1996] IRLR 351 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .432
Busch v Klinikum Neustadt GmbH & Co Betriebs – KG [2003] IRLR 625 . . . . . . . . . . . . . . . . . . . . . . .434
Bushell v Faith [1969] 2 Ch 438; [1969] 2 WLR 1067 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .339, 355
Business Appliances Specialists Ltd
v Nationwide Credit Corp Ltd [1988] RTR 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199

Butler Machine Tool Co Ltd v Ex-Cell-O Corp
(England) Ltd [1979] 1 All ER 965 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119
Bux v Slough Metals Ltd [1974] 1 All ER 262 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .495
Byrne v Van Tienhoven (1880) 5 CPD 344 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113, 116
Cadoux v Central Regional Council [1986] IRLR 131 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .400
Cahn v Pockett’s Bristol Channel Co [1899] 1 QB 643 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218
Calder and Cizakowsky v Rowntree Macintosh
Confectionery Ltd [1993] ICR 811 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .420
Callagan v Glasgow City Council [2001] IRLR 724 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .443
Cambridge and District Co-operative Society Ltd
v Ruse [1993] IRLR 156, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .482
Canniffe v East Riding of Yorkshire Council [2000] IRLR 555 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .432
Cantor Fitzgerald International v Horkulak [2004] IRLR 942 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .414
Caparo Industries plc v Dickman [1990] 2 WLR 358 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .236, 244, 257, 258
Capital Finance Co Ltd v Bray [1964] 1 All ER 603 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .527
Capper Pass Ltd v Lawton [1977] QB 852; [1977] ICR 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .419, 447
Car & Universal Finance Co v Caldwell
[1965] 1 QB 525; [1964] 1 All ER 290 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .218, 219
Cardiff Savings Bank, Re (Marquis of Bute’s case) [1892] 2 Ch 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . .346
Cargo Agency Ltd, Re [1992] BCC 388 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .342
Carlill v Carbolic Smoke Ball Co Ltd [1893] 1 QB 256 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36, 37, 111, 112,
114, 116, 119, 201
Carlos Federspiel & Co v Charles Twigg & Co Ltd [1957] 1 Lloyd’s Rep 240 . . . . . . . . . . . . . . . . . . . .214
Carmichael v National Power plc
[2000] IRLR 43, HL; [1999] IRLR 43; [1998] IRLR 301 . . . . . . . . . . . . . . . . . . . . . . . . . . . .392, 394, 413
Carslogie Steamship Co Ltd
v Royal Norwegian Government [1952] AC 292 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
Caruana v Manchester Airport plc [1996] IRLR 378, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .433
Casey’s Patents, Re [1892] 1 Ch 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120
Cassidy v Ministry of Health [1951] 2 KB 343 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .388

Cehave v Bremer (The Hansa Nord) [1976] QB 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
Cellulose Acetate Silk Co Ltd v Widnes Foundry (1925) Ltd [1933] AC 20 . . . . . . . . . . . . . . . . . . . . . .186
Central London Pty Trust Ltd v High Trees House Ltd [1947] KB 130 . . . . . . . . . . . . . . . . . . . . . . . . . .125
Central Newbury Car Auctions v Unity Finance [1957] 1 QB 371 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216

Table of Cases xxiii
Centrovincial Estates plc v Merchant Assurance Co Ltd [1983] Com LR 158, CA . . . . . . . . . . . . . . . .156
Century Insurance Co Ltd v Northern Ireland Road Transport Board [1942] AC 509 . . . . . . . . .499, 508
Chadwick v British Railways Board [1967] 1 WLR 912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .240, 258
Chamberlins Solicitors & Another v Emokpae [2004] IRLR 592 . . . . . . . . . . . . . . . . . . . . . . . . . . .436, 448
Chandler v Webster [1904] 1 KB 493 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
Chapelton v Barry UDC [1940] 1 KB 532; [1940] 1 All ER 356 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144
Chappell & Co v Nestlé Co [1959] 2 All ER 701 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
Charlton v Forrest Printing Ink Co Ltd [1980] IRLR 331 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .494, 507
Charter v Sullivan [1957] 2 QB 117 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204
Chaudry v Prabhakar [1988] 3 All ER 718 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243, 258
Chessington World of Adventure Ltd v Reed [1997] IRLR 556 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .435
Chester v Afshar [2002] 3 All ER 552 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250, 258
Chief Constable of West Yorkshire Police v Khan [2001] IRLR 830 . . . . . . . . . . . . . . . . . . . . .408, 439, 449
Chilton v Saga Holidays plc [1986] 1 All ER 841, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78
CIBC Mortgages plc v Pitt [1993] 4 All ER 433 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
City of Bradford v Arora [1991] 2 QB 507 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .441
City Equitable Fire Assurance Co, Re [1925] 1 Ch 407 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .345
City and Westminster Properties (1934) Ltd v Mudd
[1959] Ch 129; [1958] 2 All ER 733 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
Civil Service Union v United Kingdom (1987) 50 DR 228, EComHR . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
Clarion Ltd v National Provident Institution [2000] 2 All ER 265 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Clark v TDG Ltd (t/a Novacold) [1999] IRLR 318 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .442, 449
Clegg v Andersson (t/a Nordic Marine)
[2003] EWCA Civ 320; [2003] Lloyd’s Rep 32, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209

Clemens v Clemens Bros Ltd [1976] 1 All ER 268 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .316, 358, 359
CMA CGM SA v Beteiligungs KG (2002) unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Co-operative Insurance Society Ltd
v Argyll Stores (Holdings) Ltd [1997] 2 WLR 898 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188
College of Ripon & York St John v Hoggs [2002] IRLR 185 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .445
Collier v Sunday Referee Publishing Co Ltd [1940] 2 KB 647 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .405, 414
Collins v Godefroy (1831) 1 B & Ald 950; (1831) 120 ER 241 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
Coltman v Bibby Tankers Ltd [1988] AC 276; [1988] ICR 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .492, 507
Combe v Combe [1951] 2 KB 215; [1951] 1 All ER 767 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
Commission v United Kingdom [1982] IRLR 333 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .416, 420
Commission v United Kingdom, Case 165/82 [1983] ECR 3431; [1984] ICR 192 . . . . . . . . . . . . . . . . .425
Commission for Racial Equality v Dutton [1989] QB 783 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .428
Commission of the European Communities v France (2001) unreported . . . . . . . . . . . . . . . . . . . . . . . .22
Condor v Barron Knights [1966] 1 WLR 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .178
Connell Estate Agents v Begej [1993] EG 123 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194
Const v Harris (1824) Tur & Rus 496 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .287
Conway v Rimmer [1968] 2 WLR 998; [1968] 1 All ER 874 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Cook v Deeks [1916] 1 AC 554 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .357
Coomes (E) (Holdings) Ltd v Shields (1978) unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .420
Cooper v Phibbs (1867) LR 2 HL 149 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154, 155
Coote v Granada Hospitality Ltd [1998] IRLR 656 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .408, 425
Corkery v Carpenter [1951] 1 KB 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Cosgrove v Caesar and Howie [2001] IRLR 653 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .443
Couturier v Hastie (1856) 5 HLC 673 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154
Cowl v Plymouth CC [2001] EWCA Civ 1935 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Cox v Coulson [1916] 2 KB 177 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281

xxiv Business Law
Cox v Sun Alliance Life Ltd [2001] IRLR 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .408, 414
Cox Toner (WE) (International) Ltd v Crook

[1981] ICR 823; [1981] IRLR 443, EAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .460
Craig, Re [1971] Ch 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .166
Cranleigh Precision Engineering Co Ltd v Bryant [1965] 1 WLR 1293 . . . . . . . . . . . . . . . . . . . . . .411, 414
Craven-Ellis v Canons Ltd [1936] 2 KB 403 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187
Creasey v Breachwood Motors [1993] BCC 638 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .314
Cresswell v Board of Inland Revenue [1984] ICR 508 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .409
Croft v Consignia plc [2003] IRLR 592 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .435
Crowther v Shannon Motor Co [1975] 1 WLR 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202
Cruickshank v Vaw Motor Cast Ltd [2002] IRLR 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .444
Cumbrian Newspapers Group Ltd v Cumberland and Westmoreland
Herald Newspapers and Printing Co Ltd [1986] 3 WLR 26; (1986) 130 SJ 446 . . . . . . . . . . . . . . . .324
Cundy v Lindsay (1878) 3 App Cas 459 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156, 157
Curr v Marks & Spencer plc [2003] IRLR 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .395
Curtis v Chemical Cleaning and Dyeing Co [1951] 1 KB 805 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144
Cutler v Vauxhall Motors Ltd [1971] 1 QB 418 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250, 259
Cutter v Powell (1795) 6 Term Rep 320; [1775–1802] All ER Rep 159 . . . . . . . . . . . . . . . . . . . . . . .175, 176
Czarnikow v Koufos (The Heron II) [1969] 3 All ER 686 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183
D & C Builders Ltd v Rees [1966] 2 QB 617 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4, 125, 126, 165
D and F Estates Ltd v Church Commissioners for England
[1988] 3 WLR 368; [1988] 2 All ER 992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242
Daimler Co Ltd v Continental Tyre and Rubber Co (GB) Ltd [1916] 2 AC 307 . . . . . . . . . . . . . . . . . . . .33
Daly v Liverpool Corp [1939] 2 All ER 142 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248
Daniels v Daniels (1977) 121 SJ 605 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .357
Dann v Hamilton [1939] 1 KB 509 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256, 259
Davidson v Handley-Page Ltd [1945] 1 All ER 235 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .490, 507
Davie v New Merton Board Mills Ltd [1959] 1 All ER 346 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .492
Davies v Direct Loans Ltd [1986] 2 All ER 783 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .523
Davies v Sumner [1984] 1 WLR 1301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147
Davis Contractors v Fareham UDC [1956] AC 696; [1956] 2 All ER 145 . . . . . . . . . . . . . . . . . . . . . . . . .179
Davison v Kent Meters Ltd [1975] IRLR 145 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .464, 486

Dawkins v Department of the Environment [1993] IRC 517 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .428
De Souza v Automobile Association [1986] ICR 514; [1986] IRLR 103 . . . . . . . . . . . . . . . . . . . . . . . . . .431
Deane v London Borough of Ealing [1993] ICR 329 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .441
Defrenne v Sabena [1976] ICR 547, ECJ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .418
Dekker v Stichting Vormingscentrum voor Jong Volvassen
(VJW Centrum) Plus [1991] IRLR 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .433
Denco Ltd v Joinson [1991] IRLR 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .452
Dennant v Skinner & Collam [1948] 2 KB 164 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .213
Department of Economic Policy and Development of the City of Moscow
v Bankers Trust [2004] 4 All ER 746 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Derry v Peek (1889) 14 App Cas 337 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161, 242
Devonald v Rosser & Sons [1906] 1 KB 728 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .405
DHN Food Distributors Ltd v Borough of Tower Hamlets [1976] 1 WLR 852 . . . . . . . . . . . . . . . . . . .313
Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd [1965] 2 All ER 65 . . . . . . . . . . . . . . . . . .139
Dickinson v Dodds (1876) 2 Ch D 463 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113
Dimmock v Hallett [1866] 2 Ch App 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Dimond v Lovell [2001] 1 AC 384; [2000] 2 WLR 1121; [2000] 2 All ER 897 . . . . . . . . . .511, 513, 515, 516