LAWS 4209 Lecture Notes - Lecture 4: Fredericton International Airport, Nav Canada, Rescission
Document Summary
Known as the mystery doctrines of contract law (inadequate in terms of its function and explanation civil law systems do not use a consideration doctrine: practical benefit. Gilbert steel ltd. v. university construction ltd. (1976) Contract under which gilbert was to supply steel to university at an agreed upon price. The price of steel increased and gilbert met with university at which point. University verbally agreed to pay a higher price than what was originally agreed upon. Once the steel was delivered, university refused to pay the additional amount. Reasoning: a verbal agreement was a modification, not a rescission of contract as no changed other than the price was discussed. This modification was not supported by fresh consideration. Must be explicit about rescinding the contract and show the court it was their intention. The plaintiffs cannot found their claim in estoppel because it can only be used as a shield, not a sword.