A father promised to pay £1 weekly for his illegitimate child's maintenance if the mother proved the child would be well looked after and happy. The Court of Appeal held there was sufficient consideration for this promise, even though the mother had a pre-existing legal duty to maintain the child....
The ITF 'blacked' a flag-of-convenience vessel at Milford Haven, compelling the shipowners to pay $80,000 including $6,480 to a Welfare Fund. The shipowners sought recovery of the Welfare Fund contribution on grounds of resulting trust or economic duress. The House of Lords held there was no trust, but the demand...
William Tweddle married the daughter of William Guy. Both fathers agreed in writing to pay sums to William Tweddle, with the agreement stating he could sue for the amounts. When Guy's executor failed to pay, Tweddle sued. The court held that a stranger to the consideration cannot sue on a...
T.M.M.C. granted TECO a patent licence requiring royalty and 'compensation' payments for exceeding production quotas. During wartime, T.M.M.C. informally suspended compensation claims. The House of Lords held that delivery of a counterclaim in earlier litigation sufficiently terminated this equitable suspension, allowing T.M.M.C. to recover compensation after reasonable notice. Facts Tool...
A professional trumpeter was injured at an automatic car park. The parking company sought to rely on exemption clauses displayed on premises and referenced on a machine-issued ticket. The Court held that contractual terms from an automatic machine come too late if issued after the contract is formed, and unusual...
A landlord sought rectification of a lease where the rent review clause omitted provision for arbitration in default of agreement. The tenant's director knew of this omission but did not inform the landlord. The Court of Appeal upheld rectification based on unilateral mistake where one party knowingly failed to correct...
Taylor agreed to hire the Surrey Gardens and Music Hall from Caldwell for four concert days. Before the first concert, the Hall was destroyed by accidental fire. The Court held that both parties were excused from performance as the contract impliedly depended on the continued existence of the Hall. This...
Surrey County Council and Mole Valley District Council sold land to Bredero Homes subject to covenants requiring development in accordance with planning permission for 72 houses. Bredero obtained new permission and built 77 houses, making additional profit. The councils sought damages for breach of covenant but, having suffered no financial...
Wijsmuller contracted to transport Lauritzen's drilling rig using either Super Servant One or Two. Super Servant Two sank before performance. Wijsmuller allocated Super Servant One to other contracts and claimed frustration. The Court of Appeal held the contract was not frustrated because Wijsmuller's election determined which contract could not be...
Sailors sought extra wages after two crew members deserted, with the captain promising to divide deserters' wages among remaining crew. The court held the agreement void for want of consideration, as sailors were already contractually bound to complete the voyage under all emergencies. Facts The plaintiff was a seaman on...
Stewart Gill sued Horatio Myer for unpaid contract sums. Myer sought to set off cross-claims for alleged breaches. Stewart Gill relied on a clause excluding set-off rights. The Court of Appeal held the entire clause must satisfy the reasonableness test under the Unfair Contract Terms Act 1977, and found it...
St Albans Council contracted with ICL to supply computer software for community charge collection. Faulty software overstated the local population by 2,966, causing the Council to set the charge too low and suffer significant revenue losses. The Court held ICL breached its contract and that limitation clauses failed the reasonableness...
Warehousemen stored barrels of orange juice which were returned damaged. The customer counterclaimed for negligence, but the warehousemen relied on an exemption clause in their contract conditions. The Court of Appeal held the exemption clause was incorporated through course of dealing and protected against negligence, provided there was no breach...
Mrs Smith purchased a house relying on a mortgage valuation report prepared for the building society, which negligently failed to identify serious structural defects. The surveyors sought to rely on a disclaimer of liability. The House of Lords held that surveyors owe a duty of care to purchasers who they...
Smith was induced by fraudulent misrepresentations to purchase Ferranti shares at an inflated price. The shares later collapsed in value due to an unrelated pre-existing fraud. The House of Lords held that in deceit, the plaintiff may recover all losses directly flowing from the fraudulent transaction, not limited to the...
A nephew sued his uncle's executors for unpaid annuity instalments promised by the uncle upon hearing of the nephew's intended marriage. The court held that marriage, induced by the uncle's promise, constituted valid consideration despite the nephew being already engaged, as it involved detriment to the nephew and benefit to...
Stevedores negligently damaged a drum of cargo belonging to the respondents during unloading. The stevedores sought to rely on limitation of liability clauses in the bill of lading between the carrier and cargo owner, despite not being parties to that contract. The House of Lords held that a stranger to...
Plaintiffs contracted to deliver coals to third parties, who sold them to the defendant. The defendant promised to unload at a certain rate in exchange for delivery. The court held that delivery to the defendant was good consideration for his promise, despite the plaintiffs' pre-existing contractual duty to third parties....
An elderly widow assigned her leasehold property to a fraudster believing she was signing a deed of gift to her nephew. The building society had advanced money on the property's security in good faith. The House of Lords dismissed her plea of non est factum, holding the document was not...
A contractor built a swimming pool 9 inches shallower than contracted. The pool remained safe and functional, with no diminution in value. The House of Lords held that the cost of rebuilding (£21,560) was unreasonable and disproportionate, awarding instead £2,500 for loss of amenity. Facts Mr Forsyth contracted with Ruxley...
A motor dealer misrepresented the deposit amount to a finance company to secure a hire-purchase agreement. The customer later dishonestly sold the car and defaulted. The Court of Appeal held that damages under s.2(1) Misrepresentation Act 1967 are assessed as for fraudulent misrepresentation, allowing recovery of all direct losses even...
Eight appeals concerning wives who charged their homes as security for husbands' debts and later claimed undue influence. The House of Lords clarified when banks are 'put on inquiry' and what steps they must take to avoid constructive notice of undue influence, establishing comprehensive guidance on solicitors' duties and disclosure...
A motor bicycle was sold through a chain of buyers, with each seller stating it was a 1941-1942 model based on the registration book, which was false. The Court of Appeal held that such statements were mere representations, not warranties, and the final seller was not liable in damages. Facts...
Rose and Frank Company, American paper dealers, had arrangements with English paper manufacturers Crompton and Brittains. A 1913 memorandum contained an 'honourable pledge' clause stating it was not a legal agreement. The House of Lords held this clause effectively negated contractual intention, but individual orders placed and accepted remained enforceable...
Selectmove Ltd owed substantial PAYE and NIC arrears to the Inland Revenue. The company's director claimed an agreement was made with a tax collector to pay arrears by instalments. The Court of Appeal held there was no binding agreement due to lack of authority and consideration, reaffirming that practical benefits...