A shopkeeper displayed a flick-knife with a price tag in his window. Prosecuted for 'offering for sale' an offensive weapon, the court held this was not an offer. Applying contract law, the display was merely an 'invitation to treat'. Facts The respondent, a shopkeeper in Bristol, displayed a ‘flick knife’ in his shop window. A ticket was placed behind the knife which read “Ejector knife — 4s.” The appellant, a chief inspector of police, brought an information against the shopkeeper alleging he had committed an offence under section 1(1) of the Restriction of Offensive Weapons Act 1959. This section made
A customer signed a hire-purchase offer for a car, but returned it to the dealer before the finance company accepted. The car was then stolen and damaged. The court held no contract existed as the offer was revoked or, alternatively, was subject to an implied condition that the car remain in the same state. Facts On 16th March 1961, the defendant, Mr Stimson, wished to acquire a car on hire-purchase terms. He saw the car at the premises of a dealer, Stanmore Motor Co. He signed a hire-purchase agreement form provided by the dealer. This form, which was an agreement
A Polish company paid an advance for machinery from an English company. The contract was frustrated by the outbreak of WWII. The House of Lords held the Polish company could recover its advance payment due to a total failure of consideration. Facts In July 1939, the appellants, Fibrosa Spolka Akcyjna (a Polish company), entered into a contract with the respondents, Fairbairn Lawson Combe Barbour, Ltd (an English company), for the purchase of certain machinery for £4,800. Delivery was to be to Gdynia, Poland. Per the contract terms, the appellants made an advance payment of £1,000. However, on 1 September 1939,
A prospective home buyer specifically asked his surveyor to investigate aircraft noise. The surveyor's negligent report caused the buyer distress and loss of amenity after purchase. The House of Lords awarded damages for this non-pecuniary loss, establishing that this is possible where peace of mind is a major, not necessarily sole, object of the contract. Facts Mr Farley, who was approaching retirement, was seeking to purchase a substantial country residence for quiet enjoyment. He became interested in a property known as ‘The Grange’ in Sussex but was concerned about the potential for aircraft noise, as it was located 15 miles
Stevedores negligently damaged cargo while unloading. A bill of lading, to which they were not a party, contained an exemption clause extending protection to them. The Privy Council held the stevedores could rely on the clause, creating a binding contract through their performance. Facts A valuable drilling machine was shipped from Liverpool to Wellington, New Zealand, under a bill of lading issued by the carrier. The contract of carriage, evidenced by the bill of lading, was between the shipper (the consignor) and the carrier. The bill of lading contained Clause 1, a ‘Himalaya Clause’, which sought to extend the benefit
A time charterparty required a voyage via the Suez Canal, which then closed during the 1956 crisis. The charterers argued the contract was frustrated. The Court of Appeal held it was not; the longer, more expensive voyage around the Cape was not radically different. Facts The owners of the vessel, The Eugenia, (Ocean Tramp Tankers Corporation) chartered it to the charterers (V/O Sovfracht) for a time charter trip from Genoa to India via the Black Sea. The charterparty contained a war clause which stipulated that the vessel should not be brought into any zone which was dangerous as a result
Esso offered 'World Cup Coins' with petrol purchases. Customs and Excise sought purchase tax, arguing a sale occurred. The House of Lords held there was an intention to create legal relations, but no 'sale' of the coins, which were merely part of a single contract for petrol. Facts Esso Petroleum devised a sales promotion scheme to increase sales of its petrol. For every four gallons of Esso petrol purchased by a motorist, Esso would provide one ‘World Cup Coin’, part of a collectible set. The coins themselves had little to no intrinsic value. The Commissioners of Customs and Excise contended
A father promised his son and daughter-in-law a house if they paid the mortgage. After his death, his personal representatives sought to evict her. The court found a unilateral contract, holding the father's promise was irrevocable as long as performance continued. Facts In 1936, a father bought a house in Newcastle-upon-Tyne for his son and daughter-in-law to live in. The house was put in the father’s name. He paid £250 of the £750 purchase price in cash and borrowed the remaining £500 from a building society, secured by a mortgage on the property. The father told his daughter-in-law that the
An English company sent an offer by telex to Holland; the acceptance was telexed back to London. The court held that for instantaneous communications, a contract is formed where and when acceptance is received, establishing London as the place of contract. Facts The plaintiffs, Entores Ltd., were an English company based in London. The defendants, Miles Far East Corporation, were an American corporation with agents in Amsterdam, Holland. The plaintiffs in London made an offer by Telex to the defendants’ agents in Amsterdam for the purchase of a quantity of copper cathodes. The defendants’ agents in Amsterdam sent a Telex
Company directors issued a prospectus seeking investment, falsely stating the funds were for business expansion when they intended to pay off debts. An investor, who was partly induced by this lie, successfully sued for fraudulent misrepresentation. This established that a dishonest statement of future intention is a misrepresentation of fact. Facts The directors of a company issued a prospectus inviting subscriptions for debenture bonds. The prospectus stated that the objects of the issue were to enable the company to complete alterations to its buildings, to purchase horses and vans, and to further develop the trade of the company. However, the
