Case Studies Flashcards
Henry v Facey 1983 case?
Request for information is not a contract
Supply of information
H asked lowest price, F responded and H said that was a contract
IT IS NOT
Pharmaceutical Society of GB v Boots 1952
Good on shelves merely invitations to treat so no contract until the customers offer was accepted at the till
Carlil v Carbolic Smoke Ball 1893?
Implied acceptance of offer by actions
Confident of properties so anyone who used it and caught flu got £100
Mrs C saw, used and got flu
Was entitled to £100 as wording amounted to offer
Mrs C accepted by purchasing and using
Wolf and Wolf v Forfar Potato Company 1984
Time limit for acceptance of offer
Acceptance with new conditions
Rejected new conditions
Tried to accepted original offer in time limit
Not supplied
No contract formed as original offer falls once counter offer made
Wylie and Lochhead v McElroy and Sons 1973
Offer not accepted for 5 weeks during which price increased
No acceptance within reasonable time so no contract
Fluctuating commodity; hours must suffice for a decision
Entores v Miles Far East Corporation 1955
Offer sent by telex
Acceptance by telex
Contract made in London or abroad?
Acceptance took effect when acceptance was printed out on claimants terminal in London
Adams v Lindsell 1818
Sold wool to someone else in time acceptance was in the post
Contract came into existence when claimants posted their acceptance
Thomson v James 1855
Was a contract as acceptance was effective when it was posted
Revocation could only take effect when reached
Acceptance happened first
The Countess of Dunmore v Alexander 1830
Acceptance and withdrawal of acceptance received and the same time so no contract
Re McArdle 1951
Work on house completed before docs signed
Past consideration so not binding
Chappell v Nestle 1960
Dispute over wrappers royalties
Wrappers were part of consideration as they had commercial value to the defendants
Earl of Orkney v Vinfra 1606
The earl threatened to stab V is did not sign
Not consented voluntarily so no valid contract
Merritt v Merritt 1971
Husband left wife signed note stating would transfer house when mortgage paid- refused.
Inferred that they intended their agreement to be legally binding so wife could sue for breach
Dunlop Pneumatic Tyre Co v Selfridge and Co 1915
Dunlop sells on terms that Mr X wouldn’t resell for less
X sold to S and S was to pay 5 if sold below retail price
Sold and D sued to recover 5 per tyre
Could not recover damages under contract between X and S to which he was not a party
Powell v Kempton Park Racecourse 1899
Offence to use a ‘house, office, room or other place for betting’
Used an outdoor ring
‘Other place’ had to refer to a place indoors as all listed words were indoors
Outdoors so not guilty of an offence
The Scottish Farmers Diary Co (Glasgow) v McGhee 1933
Restrictive covenant- business interests protected
Milkman bound not to carry on business as a milkman within 1 mile of former employer
Reasonable to preserve employers trading interest Popular milkman may have goodwill linked directly to him
Nordenfelt v Maxim Nordenfelt Guns and Ammunition 1894
Restrictive covenant- wider than necessary?
Not engage in trade of arms manufacturer for 25 years worldwide
Restrictive covenant was reasonable
Nature of business was such that former customers came from all over the world
Rentokil Ltd v Kramer 1986
Restrictive covenant appropriate target?
K prohibit for 2 years canvassing R customers
Restriction was not wider than necessary
Full access to customer list
Prevent K using to their prejudice and advantage of his new employers
Empire Meat Co v Patrick 1939
Restrictive covenant
Tried to impose a 5 mile restriction on manager
Likely radius of customers was only 2 miles
Restriction failed
Taylor v Glasgow Corporation 1952
Exclusion clause
T went to public baths and given a ticket
Knew had writing but not conditions
Said not responsible for loss or injury
T injured herself and tried to claim it was due to negligence
Ticket was not of a types a person could reasonable be expected to study for conditions
Entitled to assume just a voucher
Not sufficient notice so not part of contract
Olley v Marlborough Court Hotel 1949
Paid for room at hotel
Hotel notice disclaimed liability
Thief stole key and coat from room
Hotel couldn’t rely on notice because contract was formed at reception when room was paid for
L’Estrange v Graucob 1934
Signed a document but didn’t read it
Still binding on her
Curtis v Chemical Cleaning and Dyeing Co Ltd 1951
Misleading exclusion clause
Took wedding dress to be claimed
Sign conditions that restricted liability to damage to beads on dress
Dress stained
Cleaners couldn’t rely on exclusion clause as they had actively misled claimant
Assumed risked beads only
Interfoto Picture Library v Stiletto Visual 1988
Unusual or onerous term; for every day late returning Onerous term not sufficiently brought to attention of defendant
Court did not apply
Damages that more fairly reflect loss
Tsakiroglou and Co Lrd v Noblee Thorl 1962
Charter of ship to transport groundnuts
Suez Canal was closed after the contract was concluded
Not frustrated as ship could go alternate route
Greater cost not so fundamentally different
Hochster v De La Tour 1853
Contract to accompany on tour, then told no longer needed
Entitled to sue as soon as anticipatory breach took place
White and Carter Ltd v McGregor 1962
Continued to perform in anticipatory breach
Entitled to recover agreed price for advertising services
Repudiation does not bring contract to end but gives innocent party choice of affirming or rejecting
Anglia TV v Reed 1971
Actor broke contract last minute
Had incurred preparator costs
TV company able to recover these expenses
Wouldn’t have been able to recover lost profits as impossible to determine film would have made a profit
Sykes v Midland Bank Executor and Trustee Co Ltd 1971
Solicitors acting in breach failed to advise their client of a disadvantageous term in a lease
Would have entered into contract even if advised
Breach did not cause the loss and no compensation payable
Payzu Ltd v Saunders 1919
Mitigation may be reasonable to accept substitute performance- cost effective
Party claiming must take reasonable steps to minimise loss
Contract for goods in installments
Failed to pay 1st one
Refused to make further deliveries
Refused to accept terms
No more goods
Price rose and Payzu sued for breach
Payzu should have mitigated its loss by accepting offer of goods for cash in advance
Since it didn’t, limited damages to assumed loss had paid in advance
Hadley v Baxendale 1854
Flour mill had broken crankshaft Delayed replacement Mill owner not entitled to damages Not reasonably foreseeable to the carrier that the mill would be out of actions Expected mill would have spare Too remote
Victoria Laundry (Windsor) v Newman Industries 1949
5 months late in delivering boiler
Lost lucrative cleaning contract
Sued for ordinary profits
Only liable ton compensate for ordinary loss not exceptional loss
Would only be recoverable if has knowledge of the contract at the time
Balfour Beatty Construction v Scottish Power 1994
BB while constructing power failed at critical point
Sued SP for breach
Court ruled loss too remote
Appealed to Inner House of Court of Session and claim succeeded on basis that SP had sufficient technical knowledge to foresee damage of power failing
SP appealed and House of Lords agreed with first ruling
Walker v Crystal Palace FC 1910
Professional footballer an employee as under its control with regards to training, discipline and how he was paid
Cassidy v Ministry of Health 1951
Operation negligently carried out and hospital was sued, argued that it did not have control over the doctors work
Had employer appointed employee?
Hospital management had chosen the doctor and could dismiss so was vicariously liable
Ready Mixed Concrete v Ministry of Pensions and National Insurance 1968
Driver worked for a company and thought he owned the lorry, bought on hire purchase
Wore company uniform and lorry painted with logo
If unable to do a delivery appointed replacement driver
Ministry claimed he was an employee
Test whether working on his own account
Was a self employed contractor
Could decide to appoint replacement
Autoclenz v Belcher 2011
Contracts stated self employed, had to provide own materials and substitute workers
No obligation to provide them with work
Actual arrangements did not accord with these terms
Provided with work, provided materials
Bargaining strength of the parties and found it indicated employee relationship
Watteau v Fenwick 1893
Pub manager doesn’t have express authority to buy goods other than beer
Orders cigars but doesn’t pay
Pub owner was liable because buying cigars fell within the usual authority of a pub manager
Only if supplier told of limited nature of manager’s authority would pub not been bound
International Sponge Importers v Andrew Watt and Sons 1911
Ostensible authority of salesman
ISI knew cheques made out to salesman personally
Salesman kept cheque and ISI tried to claim payment from W
W did not have to pay
ISI failing to object allowed W to rely on ostensible authority of the salesman to accept cheques
Dudley v Barnet 1937
Estate agents found new tenants and arranged they’d take over lease
Existing tenants accepted different offer and refused to pay commission to estate agents
Estate agents entitled to be paid despite not going through principal
Remuneration if contract not carried out
Black v Cornelius
Architect had implied authority to delegate certain matters to a surveyor
