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E-grāmata: Law of Rescission

Dominic O'Sullivan KC (Inns of Court), Rafal Zakrzewski (Partner, CMS), Steven Elliott KC (Barrister, One Essex Court)

Formāts: 736 pages
Izdošanas datums: 21-Jul-2023
Izdevniecība: Oxford University Press
Valoda: eng
ISBN-13: 9780192593382

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Formāts: 736 pages
Izdošanas datums: 21-Jul-2023
Izdevniecība: Oxford University Press
Valoda: eng
ISBN-13: 9780192593382

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The Law of Rescission is an extensive analysis of the law concerning the rescission of contracts and gifts in England and Wales, and also contains detailed reference to the law of other parts of the Commonwealth including Australia, New Zealand, Canada, British Virgin Islands, Cayman Islands, Isle of Man, Singapore, Hong Kong, Malaysia, and India. This is the leading work in the field.

The revised third edition builds on the established format of the previous edition, fully updating case law and considering how developments, such as the introduction of machine generated contracts, impacts on the law. The book also incorporates new legislation, such as The Insurance Act 2015.

Rescission is frequently sought in commercial, property, and insurance disputes, making this book an essential reference for all lawyers involved in civil litigation, as well as for civil judges. The Law of Recission has has been cited by courts in England and Wales, as well as Australia and Canada. Academics will also find this book of great interest when researching contracts, remedies, or restitution.

Recenzijas

A model example of doctrinal scholarship * [ 2015] Conv 465 * Excellent * J. D. Heydon, M. J. Leeming, P. G. Turner, editors of Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th edition, LexisNexis Australia 2014) * A remarkable work of practical scholarship... should find its way on to the shelves of every law library (including those of courts who do serious civil work) and of every office or set of chambers where property or mercantile law is practised. On any view it is work of high distinction. * [ 2008] Conv 350 *

Table of Cases

xxiii

Table of Legislation

lxxv

I INTRODUCTION

1 Core Distinctions

A Introduction

(5)

B Termination Ab Initio and De Futuro

(29)

(1) Nature and basis of the distinction

(7)

(2) Termination ab initio: effects on contractual rights and obligations

(6)

(3) Termination de futuro: effects on contractual rights and obligations

(3)

(4) Termination ab initio and de futuro: rights to restitution

(8)

(5) Terminology

(4)

C Void and Voidable Contracts

(22)

(1) Void and voidable contracts

(3)

(2) Contracts valid until rescinded and contracts ineffective until ratified

(6)

(3) Transfer of title

(4)

(4) Recovery of benefits

(8)

D Rescission and Transactions Ineffective in Equity

(1)

(1) Introduction

(10)

(2) Where the claimant is not a party to the impugned transaction

(3)

(3) Where the claimant is a party to the impugned transaction

(17)

(4) Bribes

(3)

(5) Apparent gifts made ineffective by resulting trust

(1)

(6) Other ineffective transactions

2 Rescission and Independent Claims

A Introduction

(2)

B Damages

(7)

C Equitable Compensation

(4)

D Disgorgement of Profits

(2)

(1) Distinction between profit-based remedies and rescission

(8)

(2) Proprietary relief absent rescission

(3)

(3) Personal accountability for profits absent rescission

3 Historical Foundations

A Introduction

(3)

B The Common Law

(30)

(1) The effect of fraud on contract

(1)

(2) The effect of fraud on title

(10)

(3) Rescission as a condition to restitution

(14)

(4) Termination de futuro and ab initio

(3)

(5) Role of the forms of action

(1)

C Equity

(21)

(1) Introduction

(3)

(2) Orders effecting rescission

(3)

(3) The effect of fraud on contract

(2)

(4) The effect of fraud on title

(11)

(5) Rescission by election

(2)

D The Special Case of Insurance

(1)

(1) Special relationship between common law and equity

(3)

(2) Chancery courts' policy of limited interference

(4)

(3) Change from `void' to `voidable'

II GROUNDS

4 Misrepresentation

A Introduction

(3)

B Types of Misrepresentation: Fraudulent, Negligent, Innocent

(13)

(1) Nature of fraudulent misrepresentation

(4)

(2) Importance of the distinction outside law of rescission

(1)

(3) Importance in relation to rescission

(3)

(4) Special vulnerability of contracts to rescission for fraud

(4)

C Representation

(57)

(1) Representations of existing fact and of law

(3)

(2) Representation may be a contractual term

(6)

(3) Representation may be express or implied

(2)

(4) Passing on information generally not a representation

(1)

(5) Silence generally not a representation

(3)

(6) Sources of implied representations

(7)

(7) Determining what was represented (expressly and impliedly)

(5)

(8) What are not representations

(18)

(9) Materiality of the representation

(12)

D Representation must be Made by the Representor to the Representee

(7)

(1) Those by whom the representation may be made

(2)

(2) Those to whom the representation must be made

(5)

E Representation must be False

(19)

(1) Substantial correctness sufficient

(5)

(2) Representation must be false at the time of reliance

(2)

(3) Continuing representations and changes of circumstances

(10)

F Representation must be Relied On

100

(1)

(1) Reliance and inducement: a question of causation

100

(3)

(2) Ambiguous statements or conduct

103

(1)

(3) Causation: fraudulent misrepresentation

104

(1)

(4) Causation: non-fraudulent misrepresentation

105

(5)

(5) Presumption of reliance and onus of proof

110

(4)

(6) Examples of non-reliance on a false representation

114

(5)

(7) Opportunity to discover truth does not disprove reliance

119

(2)

(8) Subsequent transactions

121

5 Non-Disclosure

A Introduction

(1)

B No General Duty of Disclosure

(8)

(1) Exceptional cases where non-disclosure permits rescission

(6)

C Course of Dealings where Disclosure is Required

(2)

(1) Misrepresentation by silence

(1)

(2) Unilateral mistake

(1)

D Relationships where Disclosure is Required

(12)

(1) Fiduciary relationships

(2)

(2) Family arrangements

(7)

(3) Relationships of trust and confidence

(3)

E Transactions where Disclosure is Required

(1)

(1) Insurance

(17)

(2) Guarantees and suretyship

(17)

(3) Prospective partnerships

(1)

(4) Compromises

(6)

(5) Sales of land

6 Duress and Undue Influence

A Introduction

(4)

B Duress

(70)

(1) Introduction

(4)

(2) First requirement: illegitimate pressure

(37)

(3) Second requirement: coercion in the sense of no practical choice or alternative

(15)

(4) Third requirement: causation

(14)

C Undue Influence

(1)

(1) Introduction

(1)

(2) Two ways of proving undue influence

(4)

(3) Actual undue influence: undue influence proved directly

(14)

(4) Presumed undue influence: undue influence proved with the assistance of a presumption

(26)

(5) Severable transactions

120

7 Mistake, Impaired Capacity, and Unconscionable Bargains

A Introduction

(1)

B Mistake

(39)

(1) Common mistake

(5)

(2) Unilateral mistake

(15)

(3) Special doctrines of rescission for mistake

(14)

C Impaired Capacity: Mental Infirmity and Intoxication

(28)

(1) Mental infirmity

(20)

(2) Drunkenness or intoxication

(4)

D Unconscionable Bargains: Exploitation

(6)

(1) First requirement: serious disadvantage relative to the counterparty

(5)

(2) Second requirement: weakness exploited in morally culpable manner

(9)

(3) Third requirement: transaction overreaching and oppressive

(4)

(4) Possible defence: counterparty shows that transaction was fair, just, and reasonable

(4)

(5) Role of independent advice

(6)

(6) Other Commonwealth jurisdictions

103

8 Conflict of Interest

A Introduction

(2)

B Transactions with Fiduciaries

(31)

(1) Nature and basis of the fair-dealing rule

(6)

(2) Scope of the fair-dealing rule

(6)

(3) Compliance with the fair-dealing rule

(17)

C Double Employment

(15)

(1) Consent to adverse duty or interest

(4)

(2) Disclosure and advice

(3)

(3) Substantive fairness

(1)

(4) Implication of counterparty

(3)

D Bribery

(23)

(1) Rescission at law and in equity

(1)

(2) Elements of bribery

(9)

(3) Implication of counterparty

(11)

E Causation Irrelevant

9 Third Party Wrongdoing

A Introduction

(2)

B Contracts

(4)

(1) The basic rule precluding rescission

(1)

(2) Agency

(1)

(3) Knowledge of misconduct

(1)

(4) Relationship with unilateral mistake

(1)

C Surety Contracts

(14)

(1) Constructive notice

(6)

(2) Circumstances in which special measures must be taken

(4)

(3) Special measures that immunize the security

(3)

D Gratuitous Dispositions

III RESCISSION BY ELECTION AND BY COURT ORDER

10 Common Law, Equity, and Fusion

A Introduction

(2)

B Persistence of the Distinction between Rescission at Law and in Equity

(17)

(1) Absence of fusion

(7)

(2) The principle that rules of equity prevail

(5)

(3) Reform

(5)

C Overview of the Distinctions between Rescission at Law and in Equity

(1)

(1) Introduction

(3)

(2) Grounds for rescission

(7)

(3) Bars to rescission

(4)

(4) Differences between rescinding at law and in equity

(5)

(5) Interaction between the common law and equitable doctrines

11 Electing to Rescind

A Introduction

(2)

B How an Election to Rescind is Made

(50)

(1) Communicating an unequivocal intention to disaffirm

(12)

(2) Conduct must be unequivocal

(4)

(3) Disaffirming by pleading

(11)

(4) The need for communication

(11)

(5) Rescission as a defence

(7)

(6) Need for a tender or return of benefits at the time of electing

(2)

(7) Special requirements when defending a call on shares

(3)

C Transactions Voidable at Law

(6)

(1) Election effects rescission

(4)

(2) Election to rescind irrevocable

(2)

D Transactions Voidable only in Equity

(1)

(1) Summary

(3)

(2) Historical context

(5)

(3) The rescission by election line of authority

(18)

(4) The `rescission by court order' line of authority

(12)

(5) Other common law jurisdictions

(10)

(6) Conclusions

107

(6)

(7) Whether election to rescind is irrevocable

113

12 Extinction of the Contract

A Introduction

(3)

B Rescission at Common Law

(3)

C Rescission in Equity

(1)

(1) Contract set aside by court order

(4)

(2) Contract set aside by election?

(11)

(3) Discretion to grant rescission

IV RESTITUTIO IN INTEGRUM

13 General Principles of Restitutio in Integrum

A Objective

(6)

B Judicial Discretion

(7)

C Heretical Approaches

(12)

D Retrospective Effects

(9)

(1) Introduction

(1)

(2) Contractual rights

(2)

(3) Property rights

(3)

(4) Fiscal consequences

(1)

(5) Contribution under the Marine Insurance Act 1906

(1)

(6) Interest and income

(1)

E Other Cases

(1)

(1) Replacement contracts

(1)

(2) Contract terminated by agreement

14 Mutual Restitution: Rescission at Law

A Introduction

(1)

B Restitution of Benefits Transferred

(43)

(1) Nature of the right to restitution

(1)

(2) Restitution of property transferred

(26)

(3) Substitutive restitution of property transferred

(7)

(4) Restitution for money paid

(5)

(5) Restitution for services provided

(4)

C Counter-restitution of Benefits Received

(1)

(1) Nature of the obligation to make counter-restitution

(7)

(2) The need for a return or tender of benefits received

(14)

(3) Security for counter-restitution

(3)

(4) Counter-restitution of property received

(7)

(5) Counter-restitution for money received

(10)

(6) Counter-restitution for services received

15 Mutual Restitution: Rescission in Equity

A Introduction

(2)

B Restitution of Benefits Transferred

(41)

(1) Nature of the right to restitution

(1)

(2) Restitution of property transferred

(10)

(3) Substitutive restitution of property transferred

(19)

(4) Restitution for money paid

(6)

(5) Restitution for services provided

(5)

C Counter-restitution of Benefits Received

(25)

(1) Nature of the obligation to make counter-restitution

(18)

(2) Counter-restitution of property received

(2)

(3) Counter-restitution for money received

(2)

(4) Counter-restitution for services received

(2)

D Equitable Rescission by Election

(1)

(1) Restitution

(4)

(2) Counter-restitution

16 Proprietary Claims

A Introduction

(1)

B Proprietary Claims upon Rescission at Law

(10)

(1) Property

(3)

(2) Money

(5)

(3) Tracing into substitutes

(2)

C Proprietary Claims upon Equitable Rescission

(1)

(1) Title passes pending rescission

(7)

(2) Recovering title

(6)

(3) When does disaffirmation confer an equitable interest?

(16)

(4) Retrospective equitable title

(4)

(5) Proprietary claims in respect of money paid

(14)

(6) Nature of the proprietary interest arising upon equitable rescission

17 Financial Adjustments

A Introduction

(1)

B Restitution and Counter-restitution

(30)

(1) Benefits derived from land and chattels

(11)

(2) Joint acquisitions

(1)

(3) Interest

(8)

(4) Indemnity

(7)

(5) Offsetting equivalent benefits

(2)

C Compensation

(3)

(1) Improvements and repairs

(20)

(2) Deterioration and depreciation

(6)

(3) Irrelevant detriments

18 Restitutio in Integrum Impossible

A Basic Principles

(16)

(1) Purpose of the bar

(6)

(2) The role of fault

(3)

(3) The role of delay

(5)

B The Bar at Law and in Equity

(16)

(1) The bar at law

(9)

(2) The bar in equity

(3)

(3) Persistence of the distinction

(3)

C Where Counter-restitution Not Required

(15)

(1) Benefits obtained other than under the contract

(2)

(2) Defendants fault

(1)

(3) Asset lost following tender

(2)

(4) Costless benefits

(1)

(5) Insurance fraud

(3)

(6) Benefits the defendant was bound to confer

(3)

(7) Worthless assets and services

(1)

(8) Set-off

(1)

D Counter-restitution and Unavailable Assets

(29)

(1) Counter-restitution impossible

(4)

(2) Substitutive counter-restitution

(10)

(3) The future of substitutive counter-restitution

(15)

E Counter-restitution: Miscellaneous Issues

(29)

(1) Possession, occupation, and use of asset

(8)

(2) Asset changed

(8)

(3) Asset depreciated owing to market decline

(6)

(4) Services

(3)

(5) Other intangible benefits

102

(1)

(6) Money

103

(3)

F Prejudicial Change of Circumstances

106

(15)

(1) Unjustified prejudice

107

(11)

(2) Money committed to joint purposes

118

(1)

(3) Reversible change of circumstances

119

(2)

G Miscellaneous Issues

121

(1)

(1) Date of assessment

121

(3)

(2) Onus of proof

124

19 Partial Rescission

A Introduction

(1)

B Partial Rescission

(7)

(1) Rationale

(2)

(2) Rule applies to bargains

(3)

(3) Unilateral dispositions

(1)

C Adjustment of Insurance Contracts

(1)

D Rescission Against Third Party Wrongdoers

(7)

E Rescission on Terms

(9)

(1) TSB Bank Pic v Camfield

(4)

(2) Former exception in cases of mistaken dispositions of real property

(4)

F Rescission on Terms Elsewhere in the Commonwealth

(8)

(1) Australia: Vadasz v Pioneer Concrete

(5)

(2) New Zealand

(1)

(3) Canada

(1)

(4) Hong Kong

(1)

G Comment

V THIRD PARTIES

20 Intervention of Third Party Rights

A Introduction

(5)

B Protection of Third Party Property Rights

(22)

(1) The bar at law

(14)

(2) The bar in equity

(5)

C Protection of Other Third Party Rights

(3)

(1) Multilateral contracts

(2)

(2) Contracts relating to the subject matter of the voidable transaction

(3)

(3) The winding-up bar

21 Remote Recipients

A Introduction

(2)

B Remote Recipients Vulnerable to Rescission

(26)

(1) Volunteers

(4)

(2) Those taking with notice

(14)

(3) Assignee of a chose in action

(5)

(4) Crossed cheques

(2)

C Nature of the Claim

(11)

(1) Basis of the claim against volunteers and those taking with notice

(2)

(2) Basis of the claim against assignees of a chose in action

(4)

(3) No new claim to rescind upon disposition to remote recipient

(1)

(4) Need to rescind original transaction

(1)

(5) Remote recipient in no better position than original transferee

(3)

D Consequences of Recovery

(15)

(1) Avoidance of original contract

(1)

(2) No avoidance of contract with the remote recipient

(1)

(3) Restitution from the original transferee

(2)

(4) Counter-restitution to the original transferee

(3)

(5) Restitution from the remote recipient

(2)

(6) No counter-restitution to the remote recipient

(4)

(7) Remote recipient's rights against his transferor

(1)

E Protection of Bona Fide Purchasers

(1)

(1) Common law and equitable doctrines of bona fide purchase

(8)

(2) Protection of purchaser of legal title

(1)

(3) Protection of purchaser of equitable title

(7)

(4) Onus of proof

22 Succeeding to Rights to Rescind

A Introduction

(4)

B Devolution on Death

(3)

(1) Heirs at law

(1)

(2) Beneficiary under a will

(1)

(3) Executors

(1)

C Settlements

(1)

D Assignment and Conveyance

(1)

(1) Assignment

(2)

(2) Second conveyance of same property

VI OTHER BARS

23 Affirmation

A Introduction

(3)

B Nature and Justification

(10)

(1) Juristic nature

(6)

(2) Justification

(4)

C Affirming Party must be Free from the Vitiating Factor

(21)

(1) Pressure and exploitation

(4)

(2) Misrepresentation, mistake, and non-disclosure

(17)

D Need for Awareness of Right to Rescind

(22)

(1) Uncertainty as to whether electing party must know rights

(5)

(2) Awareness of rights required in England

(2)

(3) Awareness of rights not required in other parts of the Commonwealth

(9)

(4) Whether knowledge of right to rescind should be required

(2)

(5) What must be known

(1)

(6) Deliberately failing to inquire into rights

(1)

(7) Proving knowledge of rights

(2)

E Communication

(4)

F Unequivocal Words or Conduct

(37)

(1) General principle

(3)

(2) Application of the general principle

(27)

(3) Effect of reservation of rights

(6)

(4) Possibility of affirming after an election to rescind

(1)

G Intention to Affirm is not Required

(5)

(1) General rule

(3)

(2) Where affirming conduct is not known to other party

101

(1)

(3) Relation to awareness of rights

102

(1)

H Affirmation is Generally Irrevocable

103

(7)

(1) General rule

103

(1)

(2) Exception where subsequent discovery of new ground for rescission

104

(6)

I Onus of Proof and Pleading

110

(1)

(1) Onus of proof

110

(1)

(2) Pleading

111

24 Delay and Estoppel

A Introduction

(2)

B The Different Doctrines Engaged by Delay

(35)

(1) Waiver by affirmation and by acquiescence

(11)

(2) Laches

(8)

(3) Statute of limitations applied directly

(3)

(4) Statute of limitations applied by analogy

(12)

(5) Mere lapse of time

(1)

C When Delay Bars Rescission

(78)

(1) Freedom from the vitiating factor

(19)

(2) Need for awareness of rights

(7)

(3) Unreasonable delay after emancipation from the vitiating factor

(7)

(4) What amounts to unreasonable delay

(38)

(5) The significance of prejudice

109

(7)

D Estoppel

116

25 Bankruptcy and Winding Up

A Introduction

(1)

B Bankruptcy and Winding Up Generally

(19)

(1) No general bar to rescission

(2)

(2) Supervening bankruptcy: rescinding to assert a proprietary claim

(4)

(3) Supervening bankruptcy: rescinding to assert a personal claim

(3)

(4) Rescission as a defence against the trustee in bankruptcy

(1)

(5) Contracting with an undischarged bankrupt

(5)

(6) Whether right to rescind survives discharge from bankruptcy

(1)

(7) Winding up

(3)

C Winding Up as a Bar to Shareholder's Rescission

(1)

(1) Introduction

(3)

(2) The bar

(7)

(3) Rationale

(11)

(4) Scope

(20)

(5) When winding up commences

(1)

(6) Operation of the bar before winding up

(6)

(7) Steps to be taken to prevent the bar operating

(8)

(8) Statutory exceptions

26 Contracting Out

A Introduction

(1)

B General Law

(10)

(1) Introduction

(1)

(2) Types of clauses

(1)

(3) Entire agreement clauses

(2)

(4) No representation clauses

(3)

(5) Non-reliance clauses

(3)

C Misrepresentation Act 1967

(22)

(1) Section 3 of the Misrepresentation Act 1967

(1)

(2) Scope of section 3 of the Misrepresentation Act 1967

(9)

(3) Requirement of reasonableness

(11)

D Consumer Protection Legislation

27 Bars for Non-Fraudulent Misrepresentation

A Introduction

(4)

B Transfer of Title to Real Property

(13)

(1) Nature of the bar

(5)

(2) Abolition of the bar in England and Wales

(2)

(3) Partial abolition of the bar in Australia

(1)

(4) Abolition of the bar in New Zealand

(1)

(5) Canada

(2)

(6) Hong Kong and Singapore

(2)

C Transfer of Title to Personal Property

(18)

(1) Nature of the bar

(10)

(2) Abolition of the bar in England and Wales

(1)

(3) Australia

(2)

(4) New Zealand

(1)

(5) Canada

(2)

(6) Hong Kong and Singapore

(2)

D Incorporation as a Contractual Term

(12)

(1) Nature of the bar

(3)

(2) Abolition of the bar in England and Wales

(1)

(3) Australia

(4)

(4) New Zealand

(1)

(5) Canada

(1)

(6) Hong Kong and Singapore

(2)

E Contracts for the Sale of Goods

(1) Bar on rescinding all sales of goods

(6)

(2) Rescission barred when contractual right to reject is lost

28 Disproportionate Effect: Section 2(2) of the Misrepresentation Act 1967

A Introduction

(5)

B Conditions to the Exercise of the Power

(4)

C Grounds on which the Power may be Exercised

(5)

D Measure of Damages

(21)

(1) Consequential loss

(3)

(2) Two mistaken theories

(11)

E Disproportionate Effect and the Fair-dealing Rule

VII GIFTS AND DEEDS

29 Gifts and Deeds

A Introduction

(1)

B Gifts

(61)

(1) How gifts are made

(6)

(2) Void gifts

(5)

(3) Discretion to reject and to reclaim a gift

(2)

(4) Special vulnerability of gifts to rescission

(9)

(5) Significance of how the gift is made and what is given

(3)

(6) Gifts made by conduct

(13)

(7) Gifts made by deed

(12)

(8) Dispositions of another's assets: powers of appointment

(3)

(9) Gifts and theft

(1)

(10) Assimilation of gifts to disadvantageous contracts

(7)

C Deeds

(570)

(1) Introduction

(4)

(2) Duress

(4)

(3) Fraud

(11)

(4) Cancellation of deeds

(550)

Index

633

Dominic O'Sullivan KC is a barrister specialising in commercial law. He wrote a thesis on the law of rescission under the supervision of the late Peter Birks, at Exeter College, Oxford (1997-2000), as a Commonwealth scholar. He was called to the bar at Lincoln's Inn (2001) and after practising in London at Essex Court Chambers, returned to Australia in 2006. He was appointed Queen's Counsel by the Supreme Court of Queensland in 2014.

Steven Elliott KC is a barrister specialising in commercial law. He wrote a doctoral thesis on equitable remedies at Merton College, Oxford (1997-2001) as a Commonwealth scholar. He was called to the Bar at Lincoln's Inn (2001) and practices out of the Chambers of Lord Grabiner KC, One Essex Court. Steven Elliott was appointed Queen's Counsel in 2018.

Rafal Zakrzweski specializes in corporate finance with an emphasis on debt, particularly in relation to syndicated lending, acquisition finance, real estate finance, and project finance. He advises lenders and borrowers on cross-border and domestic transactions, and has extensive experience relating to joint ventures. Rafal is a partner at CMS Poland. He is a fellow of St Hugh's College, Oxford.

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