The publication of a new edition of Chitty is always a landmark in the field of contract law. Like its predecessors over the past 164 years, this 26th edition provides the most comprehensive coverage of all aspects of contract law, both general and specific, and is indispensable for all practitioners in this field. The traditional two-volume format is retained, and there are no significant changes in the structure of the work as a whole. However, the substantial developments which have occurred during the seven years which have elapsed since the publication of the last edition have led to several parts being extensively re-written, and to the inclusion of some entirely new material. I shall not attempt to cover all these in a short review, but rather to highlight some of them which seem to me to be of special interest.

In the opening pages, describing the general principles of the formation of a contract, and in particular the nature of the offer, there is an illuminating discussion of the effect on this somewhat elementary area of the law of the recent line of arbitration cases concerning dismissal for want of prosecution, and in particular Bremer Vulcan [1981] A.C. 909 and The Hannah Blumenthal [1983] 1 A.C. 854. This has led to new problems, first, as to the application of the objective test (in circumstances, for example, where the offeree did not believe that the offeror was making an offer, although a reasonable person would have so interpreted the offeror’s conduct) and, secondly, as to the effect of silence or inactivity on the part of the offeree. This is a graphic illustration of the profound (and perhaps unexpected) impact of very specialized cases on the general law and, although the Courts and Legal Services Bill is destined to confer power on arbitrators to dismiss arbitrations for want of prosecution, the general consequences of these cases will remain.

Earlier editions have traced the decline of the supposed doctrine of fundamental breach in relation to exemption clauses, marked by Suisse Atlantique [1967] 1 A.C. 361 and Photo Production v. Securicor [1980] A.C. 827. The present edition records the final demise of this doctrine, and roundly declares that: “It is clear that there is now no longer any rule of law by which exemption clauses are rendered ineffective in the face of ‘fundamental breach’ or breach of a ‘fundamental term’.” The whole chapter on Exemption Clauses has been extensively amplified, and there is an excellent new section of force majeure clauses, with an interesting discussion of the debatable question whether and to what extent prior knowledge of the existence of facts likely to fall within such a clause debars reliance upon it.

The recent decisions interpreting and applying the Unfair Contract Terms Act 1977 are fully documented, with the noteworthy observation that there is as yet no substantial body of authority on one of the most difficult areas, namely the test of reasonableness. This is only one of many aspects of contract law where statutory consumer protection in its many diverse forms requires fresh consideration, in particular as a result of the recent enactment of a very large number of regulations under the Consumer Credit Act 1974. In this context I was particularly impressed by the expanded section devoted to the law of Credit Cards and Voucher Trading, which gives a very valuable analysis of the various legal obligations. This demonstrates that there are many aspects of this branch of the law which may be affected by the 1974 Act, the application of which, the editors state, is “a matter of some complexity and not free from doubt”; one important area of uncertainty is which are the types of agreement which are properly to be treated as exempt under the terms of the Consumer Credit (Exempt