A small building firm was owed £482. The debtor's wife, knowing the builders were in financial difficulty, offered £300 in 'full settlement'. The builders accepted under pressure. The court held that this did not extinguish the debt, as the agreement was obtained by intimidation. Facts D & C Builders Ltd, a small building company, performed work for Mr Rees amounting to £746 13s. 1d. Mr Rees paid £250 on account, leaving a balance of £482 13s. 1d. Despite several requests for payment, the balance remained unpaid. The builders were in a desperate financial situation. Mrs Rees, acting for her husband,
A sailor was promised a lump sum for a voyage from Jamaica to Liverpool but died before arrival. His widow sued for a proportionate payment but failed. The court ruled the contract was entire and required full performance for any payment to be due. Facts The defendant, Powell, the master of the ship ‘Governor Parry’, engaged T. Cutter to act as second mate for a voyage from Kingston, Jamaica to Liverpool. The defendant issued a promissory note which stated: ‘Ten days after the ship ‘Governor Parry,’ myself master, arrives at Liverpool, I promise to pay to Mr. T. Cutter the
A customer was asked to sign a receipt containing a wide exemption clause for a wedding dress. After being told it only excluded liability for beads and sequins, she signed. When the dress was stained, the court held the cleaners could not rely on the full clause due to their innocent misrepresentation. Facts The plaintiff, Mrs Curtis, took her white satin wedding dress, which had beads and sequins, to the defendants’ shop, the Chemical Cleaning and Dyeing Co., for cleaning. A shop assistant handed her a document headed “Receipt” and asked her to sign it. The plaintiff inquired as to
A customer stopped a cheque used to buy bills from a seller who then failed. The seller's bank, to whom he was indebted, sued the customer. The court held the bank could recover, establishing that a pre-existing debt constitutes valid consideration. Facts Mr Misa sold four bills of exchange to Lizardi & Co., a firm with a strong credit history. Payment was to be made a few days later on the ‘mail day’. Misa duly drew a cheque on his bankers, Messrs. Currie & Co. (the plaintiffs), in favour of Lizardi. At the time, Lizardi was substantially in debt to
A rogue, Blenkarn, impersonated a reputable firm to fraudulently obtain handkerchiefs from Lindsay & Co. He then sold them to an innocent third party, Cundy. The House of Lords held that no contract ever existed between Lindsay and the rogue, meaning title never passed. Facts The case concerned a quantity of linen handkerchiefs ordered from the respondents, Lindsay & Co., who were manufacturers in Belfast. The order came from a fraudulent individual named Alfred Blenkarn, who was operating from a room he had rented at 37 Wood Street, Cheapside. Blenkarn intentionally signed his correspondence in a manner that made his
A supplier threatened to withdraw future credit facilities from a customer unless a disputed invoice was paid. The customer paid under protest and sued, claiming economic duress. The court held the threat, being a lawful act made in good faith, was not duress. Facts The plaintiff, CTN Cash and Carry Ltd (CTN), was a wholesaler of tobacco products. The defendant, Gallaher Ltd, was a major cigarette manufacturer and CTN’s supplier. The parties had a long-standing commercial relationship, but no overarching supply contract. Gallaher provided credit facilities to CTN, but this was at Gallaher’s sole discretion and could be withdrawn at
A junior employee provided an unlimited guarantee over her flat for her employer's business debts. She received no benefit and no independent advice. The court set aside the transaction for undue influence, finding the bank failed its duty of inquiry. Facts Miss Andrea Burch, a 21-year-old junior employee, worked for a travel company owned and run by Mr Andrea Pelosi, a man she trusted. At his request, she agreed to provide security for the company’s overdraft with Credit Lyonnais Bank Nederland NV. She executed a legal charge over her flat, securing an unlimited, all-monies guarantee for all the debts of
A contract was made for the sale of a cargo of corn believed to be in transit. Unbeknownst to both parties, the corn had already deteriorated and been sold. The House of Lords held the contract was void as its subject matter did not exist. Facts A contract was made in London for the sale of a cargo of Indian corn, which both parties believed was being shipped from Salonica to the United Kingdom. However, prior to the date of the contract, the cargo had begun to ferment and deteriorate. The master of the ship lawfully sold the corn at
A nephew leased a fishery that, unbeknown to both him and his cousins (the lessors), he already owned. The House of Lords set the agreement aside for mutual mistake, establishing that a mistake as to a private right of ownership is a mistake of fact. Facts The appellant, Cooper, believing he had no entitlement, entered into an agreement to lease a salmon fishery from the respondents (his uncle’s daughters, represented by Phibbs). Both parties believed the fishery belonged to the respondents as heirs of the deceased uncle. Cooper’s uncle had previously assured him that he was entitled to the fishery.
Argyll Stores prematurely closed a supermarket, breaching a 'keep open' covenant in its lease. The landlord sought specific performance. The House of Lords refused the order, confirming that courts will not compel a business to continue trading due to constant supervision difficulties. Facts The plaintiff, Co-operative Insurance Society Ltd (CIS), was the landlord of the Hillsborough Shopping Centre in Sheffield. In 1979, CIS leased the largest unit, the ‘anchor tenancy’, to the defendant, Argyll Stores, for a term of 35 years to operate a Safeway supermarket. A key clause in the lease, covenant 4(19), required Argyll ‘to keep the demised
