Caveat subscriptor CASES
In English contract law, caveat subscriptor is the principle that a person who signs a contractual document is bound by its terms, regardless of whether they have read or understood them. The rule reflects the importance of certainty and reliance in signed agreements.
Definition and Principles
The maxim places responsibility on signatories to familiarise themselves with contract terms before signing. It underpins the enforceability of written contracts and discourages attempts to avoid obligations by claiming ignorance.
Requirements for Establishing
- Signature: A party must have signed the document, indicating assent to its terms.
- Contractual document: The document must reasonably appear to contain contractual obligations.
- Exceptions: Relief may be available in cases of fraud, misrepresentation, or non est factum.
- Effect: The signing party is taken to have agreed to all contained terms.
Practical Applications
The rule was affirmed in L’Estrange v Graucob (1934), where a party was bound by exclusion clauses in a signed contract despite not having read them. Exceptions apply in cases of misrepresentation or where the document is radically different from what was intended.
Importance
Caveat subscriptor promotes certainty and reliability in contractual dealings by ensuring signatures carry legal weight. At the same time, its exceptions prevent unfair exploitation where consent is vitiated.
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The claimant purchased a faulty cigarette machine, signing an agreement without reading it. The contract contained a clause in small print excluding all warranties. The court held that by signing the document, she was bound by its terms, establishing the principle of incorporation by signature. Facts The claimant, Miss L’Estrange, a proprietor of a café in Llandudno, purchased an automatic slot machine for cigarettes from the defendants, F Graucob Ltd. She signed a ‘Sales Agreement’ printed on brown paper which was filled in by the defendants’ agent. The agreement contained, in small print, a clause stating: ‘This agreement contains all
