D & C Builders, a small building company in financial difficulties, were owed £482 by Rees. His wife offered £300 in full settlement, threatening they would receive nothing otherwise. The Court of Appeal held the payment did not discharge the debt as there was no consideration and the agreement was...
A ship's second mate died during the voyage from Jamaica to Liverpool before completing the journey. He had agreed to receive thirty guineas on condition he served the entire voyage. The Court held that as the contract was entire and the condition precedent unfulfilled, his estate could recover nothing. Facts...
A rogue named Blenkarn fraudulently posed as the reputable firm 'Blenkiron & Co' to obtain handkerchiefs from Lindsay & Co, then sold them to innocent purchaser Cundy. The House of Lords held the contract void for mistake as to identity, meaning title never passed and Cundy had to return the...
CTN Cash and Carry paid £17,000 to Gallaher for stolen cigarettes after Gallaher threatened to withdraw credit facilities. Gallaher genuinely but mistakenly believed payment was owed. The Court of Appeal held that lawful commercial pressure exercised in bona fide pursuit of a believed debt did not constitute economic duress enabling...
A junior employee was persuaded by her employer to mortgage her flat as unlimited security for the company's overdraft of up to £270,000. The Court of Appeal set aside the mortgage, finding the bank had constructive notice of the employer's undue influence over the employee and the transaction was manifestly...
Merchants sold a cargo of corn through agents, but unknown to both parties, the cargo had already been sold at Tunis due to heating damage before the sale contract was made. The House of Lords held the contract void as there was no existing subject matter at the time of...
The appellant agreed to lease a salmon fishery from respondents, believing they owned it. In fact, the fishery belonged to the appellant himself under earlier settlements. The House of Lords held the agreement should be set aside for common mistake, but subject to the appellant compensating the respondents for improvements...
Argyll closed their Safeway supermarket in breach of a lease covenant requiring them to keep premises open for retail trade. CIS sought specific performance to compel continued trading. The House of Lords refused, holding that courts will not normally order specific performance requiring a defendant to carry on a business,...
Wife left matrimonial home with husband's consent for a holiday but did not return. Husband petitioned for divorce claiming wife's desertion revived her previously condoned adultery. Court found husband failed to prove wife intended to desert, as he kept her short of money and showed no genuine desire for her...
An attorney attended court for six days as a subpoenaed witness but was not called to give evidence. He sued for compensation for his loss of time. The court held that attendance as a witness under subpoena is a legal duty, so no action lies for compensation as there is...
Mrs Pitt was induced by her husband's actual undue influence to charge their jointly-owned home to secure a loan ostensibly for a holiday home, but actually used by Mr Pitt for share speculation. The House of Lords held that manifest disadvantage need not be proved in cases of actual undue...
A car dealer sued a buyer who repudiated a contract to buy a new car. Since demand for the car exceeded supply, the dealer easily resold it without loss. The court awarded only nominal damages, finding no actual loss of profit. Facts The plaintiff, Mr Charter, was a motor car...
Nestlé offered gramophone records for 1s 6d plus three chocolate bar wrappers. The copyright owners argued this arrangement meant there was no ordinary retail selling price for calculating royalties under the Copyright Act 1956. The House of Lords held the wrappers formed part of the consideration, not merely a qualifying...
In a 'battle of the forms' dispute, TRW purchased goods from Panasonic. The Court of Appeal held that TRW's conduct in accepting delivery of the goods constituted acceptance of Panasonic's counter-offer, thereby incorporating Panasonic's standard terms, including a German jurisdiction clause. Facts The claimant, TRW Ltd (‘TRW’), an English manufacturer...
Tekdata and Amphenol disputed whose standard terms governed contracts for connectors used in Rolls-Royce aero engines. The Court of Appeal held that the traditional offer and acceptance analysis applies in 'battle of forms' cases, meaning the seller's terms on the acknowledgement prevailed unless conduct showed contrary common intention. Facts Tekdata...
Caldwell sold his Jaguar to Norris, who paid with a worthless cheque and absconded. Caldwell immediately informed police and the AA to trace the car. The Court of Appeal held that where a fraudulent buyer deliberately absconds, the defrauded seller can rescind the contract without communicating directly with the fraudster,...
Caparo purchased shares in Fidelity relying on audited accounts prepared by Touche Ross. The accounts were allegedly negligent, overstating profits. Caparo sued the auditors claiming they owed a duty of care. The House of Lords held auditors owe no duty to individual shareholders for investment decisions or to potential investors,...
A shipowner breached a charter party by deviating, causing nine days' delay in delivering sugar to Basrah. The sugar market price fell during the delay. The House of Lords held the charterers could recover damages for loss of market as such loss was not unlikely to result from the breach...
Mr Middleton, an automobile engineer, was granted a licence to use premises for his business. He spent money on improvements. The licensors wrongfully terminated the licence ten weeks early. The Court of Appeal held he was entitled only to nominal damages as he suffered no actual loss, having returned rent-free...
A 'battle of forms' dispute arose when sellers quoted a price with a price variation clause, but buyers placed an order on their own terms without such a clause. The sellers signed and returned the buyers' acknowledgement slip. The Court of Appeal held the contract was formed on the buyers'...
Buyers failed to give the contractually required 15 consecutive days' notice before shipment of soyabean meal. The House of Lords held this time stipulation was a condition, breach of which entitled sellers to rescind regardless of actual consequences. The case clarified the distinction between conditions and innominate terms in mercantile...
Brogden supplied coal to the Metropolitan Railway Company for years. When they attempted to formalise the arrangement, Brogden added terms to a draft contract and returned it marked 'approved', but no formal agreement was executed. Both parties acted on the terms. The House of Lords held a contract arose by...
British Steel delivered steel nodes after receiving a letter of intent but before a formal contract was concluded. When negotiations failed and payment was refused, the court held no contract existed but allowed recovery on a quantum meruit basis for work done. Facts British Steel Corporation delivered steel nodes to...
A dragline crane hired urgently by the defendants sank into marshy ground without fault from either party. The Court of Appeal held that standard trade conditions were incorporated into the oral contract due to both parties' knowledge of such conditions in the plant hire trade, making the hirer liable for...
Time-charterers failed to pay hire punctually on 1st April 1970. The shipowners withdrew the vessel by telex notice. The key issue was whether withdrawal occurred before or after the late payment was received. The Court of Appeal held that the withdrawal notice preceded the payment and was therefore effective. Facts...