Defendants chartered a ship believing it was 35 miles from a vessel in distress, when it was actually 410 miles away. They cancelled, claiming common mistake. The court held the contract was not void, as the mistake was not fundamental enough to make performance impossible. Facts The vessel ‘Cape Providence’ suffered serious structural damage in the South Indian Ocean and was in danger of sinking. The defendants, Tsavliris, a professional salvage company, offered a salvage service. To assist, they urgently needed to charter a nearby vessel. They were informed by Ocean Routes, a reputable maritime location organisation, that the claimants’
A company accepted a tender to supply goods at fixed prices for a year. The tenderer later refused to fulfil a specific order. The court held the tender was a standing offer which was converted into a binding contract by each specific order. Facts The Great Northern Railway Co (the plaintiffs) advertised for tenders for the supply of various stores, including iron, for a period of twelve months from 1 November 1871. Mr Witham (the defendant) submitted a tender in which he offered to supply the company with specified articles, at specified prices, for the twelve-month period in “such quantities
The Government of Zanzibar sued British Aerospace for misrepresentation regarding a defective jet. BAe relied on a contractual exclusion clause. The court held that as a matter of public policy, a party cannot contractually exclude liability for its own fraudulent misrepresentation. Facts In 1992, the claimant, the Government of Zanzibar (‘Zanzibar’), entered into an agreement with the defendant, British Aerospace (Lancaster House) Ltd (‘BAe’), for the purchase of a Learjet executive aircraft for US $5 million, plus a further sum for pilot training. The aircraft was delivered in December 1992. However, by mid-1995, it was grounded for extensive repairs due
A colliery, fearing striking miners, promised to pay police for an on-site garrison. The police, who believed a mobile force was adequate, agreed. The House of Lords held the promise to pay was contractually enforceable as providing a garrison, beyond what the police deemed necessary, constituted good consideration. Facts During a national coal strike in 1921, Glasbrook Brothers Ltd (the respondents), owners of a colliery in Glamorgan, experienced significant industrial unrest. After a stay-at-home strike, the safety men who maintained the mine decided to return to work, but faced intimidation from striking miners. The colliery manager requested police protection, specifically
Mr Gibson sought to buy his council house after the council wrote it 'may be prepared to sell' it to him. He applied, but the council halted the sale. The House of Lords held the letter was an invitation to treat, not a binding offer. Facts In 1970, Manchester City Council, then controlled by the Conservative Party, adopted a policy of selling council houses to their tenants. Mr Robert Gibson, a tenant, applied for details of his house price and mortgage terms. The city treasurer responded in a letter dated 10th February 1971, stating that the council ‘may be prepared
A farmer bought defective cabbage seed which caused a catastrophic crop failure. The contract limited the seller's liability to the seed's price. The court held this limitation clause failed the 'fair and reasonable' test under statute and was therefore unenforceable. Facts The plaintiffs, George Mitchell (Chesterhall) Ltd., were farmers who ordered 30 lbs of ‘Finney’s Late Dutch Special’ cabbage seed from the defendants, Finney Lock Seeds Ltd., for £201.60. An invoice was sent with the seed which contained a limitation of liability clause on the reverse. The clause stated that in the event of any seeds sold being defective, the
Promoters Gamerco sued to recover a $412,500 advance paid for a Guns N' Roses concert. The contract was frustrated when authorities declared the venue unsafe. The court ordered the full repayment, declining to let the defendants retain any funds for their expenses. Facts The plaintiffs, Gamerco SA, were Spanish concert promoters who entered into a contract with the defendants, the agency for the band Guns N’ Roses, to hold a concert at the Vicente Calderón Stadium in Madrid on 4th July 1992. In accordance with the contract, Gamerco paid an advance of US$412,500 to the defendants. Shortly before the concert
Two poor, ignorant men sold their reversionary interests for a significant undervalue without independent legal advice. The court set the sales aside as an unconscionable bargain, establishing that equity will protect poor and ignorant persons from such exploitative transactions. Facts The plaintiffs were two brothers, John Bennett Fry (a plumber’s assistant) and George Fry (a laundryman). Under a will, they were each entitled to a one-fifth share of a trust fund, contingent on them surviving their aunt, who was the life tenant. This type of future inheritance is known as a reversionary interest. In 1878, J. B. Fry sold his
A dairy supplied milk contaminated with typhoid germs, causing the customer's wife's death. The court held the dairy company liable for breaching the implied warranty under the Sale of Goods Act 1893, confirming that the milk must be fit for consumption. Facts The plaintiff, Mr Frost, purchased milk daily from the defendants, The Aylesbury Dairy Company, for his family’s consumption. A pass-book was kept which contained a statement of the precautions taken by the defendants to ensure the purity of their milk. The plaintiff’s wife contracted typhoid fever from consuming the milk, which was found to be contaminated with typhoid
Dr Foakes owed a judgment debt to Mrs Beer. She agreed to accept payment in instalments and forgo interest. After he paid the principal, she successfully sued for the interest, as her promise was unsupported by fresh consideration from Foakes. Facts The respondent, Mrs Julia Beer, had obtained a judgment in the High Court against the appellant, Dr John Weston Foakes, for the sum of £2090 19s. By law, judgment debts accrue interest from the date of the judgment. Subsequently, the parties entered into a written agreement whereby Dr Foakes agreed to pay £500 immediately and the balance in half-yearly
