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Incorporation by Custom

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Incorporation by Signature
Last updated: 06-Oct-2014

In L'Estrange v Graucob [1934] 2 KB 394, Scrutton LJ said:

When a document containing contractual terms is signed, then, in the absence of fraud, or, I will add, misrepresentation, the party signing it is bound, and it is wholly immaterial whether he has read the document or not.

… In this case the plaintiff has signed a document headed ‘Sales Agreement’, which she admits had to do with an intended purchase, and which contained a clause excluding all conditions and warranties. That being so, the plaintiff, having put her signature to the document and not having been induced to do so by any fraud or misrepresentation, cannot be heard to say that she is not bound by the terms of the document because she has not read them.


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