A contract for Surat cotton 'to arrive ex Peerless from Bombay' was held void where two ships named 'Peerless' existed, one sailing in October, another in December. The parties intended different ships, so there was no consensus ad idem and no binding contract. Facts The plaintiff agreed to sell to...
A company purchased a car through a conditional sale agreement. The car's roof leaked badly and was unfit for purpose. The Court of Appeal held that the company was 'dealing as consumer' under the Unfair Contract Terms Act 1977 despite being a business, because purchasing vehicles was not integral to...
Planche, a dramatist, was engaged to write an article on costume for a juvenile publication. When defendants discontinued the publication before completion, Planche sued for work already done. The court held he could recover on a quantum meruit for partial performance rendered useless by the defendants' breach. Facts The plaintiff,...
Securicor's employee deliberately started a fire at Photo Production's factory, causing £615,000 damage. The House of Lords held that exclusion clauses remain enforceable despite fundamental breach, rejecting the 'rule of law' doctrine. The case established that such clauses are matters of contractual construction. Facts Photo Production Ltd engaged Securicor Transport...
Phillips hired a JCB excavator and driver from Hamstead. The driver negligently damaged Phillips' building. Hamstead relied on a contract condition transferring liability to the hirer. The Court of Appeal held the exclusion clause failed the reasonableness test under the Unfair Contract Terms Act 1977. Facts Phillips Products Ltd, steel...
Boots introduced a self-service system where customers selected items from shelves and paid at a cashier supervised by a pharmacist. The Pharmaceutical Society alleged this breached the requirement for poison sales to be supervised by a pharmacist. The Court held the sale occurred at the cashier, not when items were...
A tenant refused to pay rent after being expelled from leased land by Prince Rupert's hostile army during the Civil War. The court held that contractual obligations to pay rent persist despite interference by enemies, as parties must provide for such contingencies in their contracts. Facts The plaintiff (lessor) brought...
A motor dealer bought a Morris car described as a 1948 model based on the registration book, but it was actually a 1939 model. The Court of Appeal held the seller's statement was an innocent misrepresentation, not a contractual warranty, as neither party had special knowledge of the car's true...
Mrs Morgan signed a legal charge over the family home to secure a bridging loan from the bank to pay off a building society mortgage. She claimed the charge was procured by undue influence. The House of Lords held that no undue influence existed as the transaction was not manifestly...
A warehouse lessee claimed frustration when street closure prevented access for 20 months of a 10-year lease. The House of Lords held that while the doctrine of frustration can in principle apply to leases, it would only do so in rare circumstances. On the facts, the interruption was insufficient to...
The defendant granted the plaintiffs an option to purchase his house for £10,000, receiving £1 consideration. He later attempted to withdraw but the plaintiffs exercised the option. The Court of Appeal upheld specific performance, confirming that nominal consideration supports a valid irrevocable option, and the resulting contract was enforceable. Facts...
Shipowners chartered a vessel stating she was 'expected ready to load about 1st July 1965' without reasonable grounds for that expectation. Charterers purported to cancel for force majeure when cargo was unavailable. The Court held the 'expected ready to load' clause was a condition, breach of which entitled charterers to...
A contract for reservoir construction was interrupted when the Minister of Munitions ordered work to cease during WWI and dispersed the plant. The House of Lords held the contract was frustrated as the prohibition fundamentally changed conditions, making resumed performance a substantially different contract from that originally agreed. Facts The...
Mr McCutcheon's car was lost when the respondent's ship sank due to negligent navigation. The carrier sought to rely on exclusion clauses from previous dealings, but no risk note was signed on this occasion. The House of Lords held that previous course of dealing cannot incorporate terms into a contract...
May & Butcher Ltd agreed to purchase surplus government tentage with the price to be agreed later between the parties. When price negotiations failed, the Crown refused to deliver further goods. The House of Lords held there was no binding contract as the price, an essential term, remained undetermined. Facts...
Charterers hired a trawler requiring a licence to operate. When only three licences were granted for their five trawlers, they chose not to license this vessel. The Privy Council held the contract was not frustrated as the appellants' own election caused the inability to perform. Facts The appellants chartered the...
Opera singer Johanna Wagner contracted to perform exclusively at Her Majesty's Theatre for three months but then agreed to sing at a rival theatre. The Court granted an injunction preventing her from singing elsewhere, establishing that equity can enforce negative contractual stipulations even where specific performance of positive obligations is...
Mr Long purchased a lorry from Mr Lloyd after misrepresentations about its condition, including that it was in first-class condition and could achieve 40mph and 11 miles per gallon. After discovering defects, Long sought rescission. The Court held that even if rescission for innocent misrepresentation survived completion, Long had lost...
A finance company leased a computer to an accountant who repeatedly made late payments. The lease stipulated that punctual payment was 'of the essence'. When the hirer defaulted, the company terminated the agreement and claimed damages for loss of the entire transaction. The Court of Appeal held that the 'time...
An elderly farmer charged his only asset, Yew Tree Farm, to secure his son's company debts after the bank manager visited without suggesting independent advice. The Court of Appeal set aside the guarantee and charge on grounds of undue influence, establishing that banks owe fiduciary duties when crossing from routine...
Two appeals concerning building contracts with clauses prohibiting assignment without consent. The House of Lords held that such prohibition clauses are valid and effective to prevent assignment of contractual rights. However, an original contracting party can recover substantial damages for breach even after parting with property, applying the Dunlop v...
Mr Lewis sold his car to a rogue who fraudulently impersonated the film actor Richard Greene. The rogue then sold the car to Mr Averay, an innocent purchaser. The Court of Appeal held that the contract between Lewis and the rogue was voidable for fraud, not void for mistake, so...
Brathwait killed a man and requested Lampleigh to obtain a royal pardon. Lampleigh travelled extensively at his own expense to secure it. Brathwait later promised £100 but failed to pay. The court held that a prior request coupled with a subsequent promise creates binding consideration. Facts Thomas Brathwait had feloniously...
Schuler, a German machine tool manufacturer, granted Wickman sole selling rights under a distributorship agreement requiring weekly visits to six motor manufacturers. When Wickman failed to make all required visits, Schuler purported to terminate the agreement. The House of Lords held that the term 'condition' did not automatically entitle Schuler...
Mr Wallis agreed to acquire a Buick car on hire purchase after inspecting it in excellent condition. When delivered, the car was in a deplorable state, incapable of self-propulsion with burnt valves and broken pistons. The Court of Appeal held that exemption clauses cannot protect a party who commits a...