Junior Books engaged Veitchi as nominated sub-contractors to lay flooring in their factory. The floor proved defective due to poor workmanship, requiring replacement. Despite no contractual relationship between the parties, the House of Lords held Veitchi liable in tort for pure economic loss, given the exceptional proximity between the parties....
Miss Marnell repeatedly declared she had abandoned a £1200 bond debt owed by William Money, and his marriage proceeded on this faith. After her own marriage, she sought to enforce the bond. The House of Lords held that a representation of intention is not the same as a misrepresentation of...
A mother promised her daughter maintenance to study for the Bar in England, later purchasing a house for her to live in. When the relationship broke down, the mother sought possession. The Court of Appeal held there was no legally binding contract, only a family arrangement not intended to create...
Mr Jarvis, a solicitor, booked a Swiss skiing holiday based on a brochure promising house parties, entertainment, and ski facilities. The holiday fell far short of these promises. The Court of Appeal held that damages for breach of a holiday contract can include compensation for disappointment, distress and loss of...
Mr Jackson booked a family holiday to Ceylon through Horizon Holidays which fell far short of what was promised. The hotel was substandard with mildewed rooms, dirty facilities, and poor food. The Court of Appeal upheld damages of £1,100, establishing that a contracting party can recover damages for loss suffered...
A photographic library sent transparencies with conditions including an unusually high holding fee of £5 per day per transparency. The defendants retained them beyond 14 days without reading the conditions. The Court of Appeal held that particularly onerous or unusual terms must be fairly brought to the other party's attention...
Three sisters sold their car to a rogue who falsely claimed to be P.G.M. Hutchinson of Caterham, a genuine person they verified in the telephone directory. The rogue paid by worthless cheque and sold the car to a bona fide purchaser. The Court held no contract existed as the offer...
Wrench offered to sell his farm to Hyde for £1000. Hyde counter-offered £950, which Wrench rejected. Hyde then purported to accept the original £1000 offer. The court held no contract existed as the counter-offer had destroyed the original offer, establishing the counter-offer rule in contract law. Facts The Defendant, Wrench,...
A tenant farmer claimed compensation for seed and labour upon quitting the farm, relying on the custom of the country. The landlord argued the written lease excluded such customary allowances. The Court held that customs of the country are implied into leases unless expressly or impliedly excluded, and the tenant...
A landlord served a six-month notice to repair on his tenant railway company. During negotiations for the sale of the lease, repairs were suspended by mutual understanding. The House of Lords held the landlord could not enforce forfeiture when repairs were completed within six months of negotiations ending, establishing the...
Ogdens hired barges from Howards for excavation work after being told the barges could carry 1600 tonnes. The actual capacity was only about 1055 tonnes. The Court of Appeal held Howards liable under section 2(1) of the Misrepresentation Act 1967 as they failed to prove reasonable grounds for their belief...
Charterers wrongfully terminated a time charter due to delays caused by an incompetent engine-room crew rendering the vessel unseaworthy. The Court of Appeal held that the seaworthiness obligation was not a condition entitling automatic termination; breach must frustrate the contract's commercial purpose. This case established the doctrine of innominate terms....
Holwell Securities attempted to exercise an option to purchase property by posting a letter which never reached the defendant. The Court of Appeal held that the postal rule did not apply because the option required 'notice in writing to' the vendor, meaning actual communication was necessary. The appeal was dismissed....
Mr Hollier's car was damaged by fire at the defendants' garage due to their negligence. The defendants sought to rely on an exclusion clause disclaiming responsibility for fire damage. The Court of Appeal held the clause was not incorporated by course of dealing and, even if it had been, did...
An interior decorator contracted to decorate and furnish a flat for £750. The work was completed but with minor defects costing £55 to remedy. The defendant refused to pay the balance, arguing the contract was entire and not fully performed. The Court held substantial performance entitled the plaintiff to the...
A courier was hired in April 1852 to commence employment on 1st June 1852. In May, the employer repudiated the contract. The court held the courier could sue immediately for breach without waiting until the performance date. This landmark case established the doctrine of anticipatory breach of contract. Facts In...
Hillas agreed to buy 22,000 standards of Russian softwood timber from Arcos with an option to purchase 100,000 standards the following year. When Arcos sold their entire 1931 output to another buyer, Hillas exercised the option. The House of Lords held the option clause created a binding contract despite its...
Mrs Heywood instructed solicitors to obtain an injunction against a man molesting her. The solicitors negligently failed to enforce the injunction when it was breached, leaving her unprotected. She recovered the fees paid plus damages for mental distress caused by the continued molestation resulting from their breach of contract. Facts...
Lloyd's Names sued their managing agents for losses suffered from negligent underwriting. The House of Lords held that managing agents owed a duty of care in tort to both direct and indirect Names, based on the Hedley Byrne principle of assumption of responsibility. Concurrent liability in contract and tort was...
Buckleton purchased shares in a rubber company after a telephone conversation with the defendants' agent. When the company proved not to be primarily a rubber company, he claimed damages for breach of warranty. The House of Lords held no warranty existed, establishing that representations only become warranties if intended as...
Hedley Byrne, advertising agents, suffered financial loss after relying on negligent credit references given by Heller & Partners about a customer. The House of Lords established that a duty of care can arise for negligent misstatements where there is a 'special relationship' between parties, even without a contract, though the...
A couple purchased a motor repair business relying on their solicitors' negligent advice that a right of way existed. When the access was blocked, their business failed. The court assessed damages on a 'no-transaction' basis, awarding expenditure less recoveries, but disallowed damages for mental distress in commercial contracts. Facts Mr...
Appellants sent a telegram asking if Facey would sell property and his lowest price. Facey replied with only the lowest price (£900). Appellants purported to accept. The Privy Council held no contract existed as stating a lowest price was not an offer to sell. Facts The Appellants, Harvey and another,...
An art dealer sold a painting attributed to Gabriele Münter to another dealer for £6,000, but it was later discovered to be a forgery. The buyer claimed breach of the implied condition under s.13(1) of the Sale of Goods Act 1979 (sale by description). The Court of Appeal held there...
Young pheasants died after eating compound food containing toxic Brazilian groundnut meal. The case examined liability through the chain of supply under the Sale of Goods Act 1893 and Fertilisers and Feeding Stuffs Act 1926, establishing important principles on implied conditions of fitness for purpose and merchantability in commercial sales....