Module 6: Limitations on Freedom of Contract Flashcards
Lowee v Peers
Defendant promised that he will marry no one but the plaintiff, on the penalty of paying 1000 Pounds if he marries someone else. Court found that it was not a promise to marry her but to not marry anyone else, but she was free to marry anyone. It was void as it was purely restrictive and carried no promise to carry on either side.
Rao Rani v Gulab Rani
2 widows of the same husband. They were to lose on his share of property if they remarried. One of them wanted to marry and claimed this was a restriction on marriage. Decided it was merely a condition and she was free to forfeit her share of property. No direct restraint.
Madhub Chunder v Rajcoomar Doss
Defendant promised to pay the plaintiff a sum of money if the plaintiff shut down his business. Agreement was found to be in absolute and total restraint of trade and therefore unenforceable.
Nordenfelt v Maxim Nordenfelt Guns & Ammunition Co Ltd
Nordenfelt sold business for £200,000 with the agreement of not making guns and ammunition anywhere in the world for 25 years. Court decided this was a reasonable restriction and not an absolute one, and consideration paid was also enough. Contract valid.
S.B. Fraser v. Bombay Ice Mfg. Co.
Agreement fixed a minimum price of ice, some sellers not allowed to sell in Pune. Restrictive of trade as it attempted to establish a monopoly.
Gherulal Parekh v Mahadeo Das
Whether a partnership entered into for the purchase and sale of wheat so as to speculate as to the rise and fall of price of wheat was a wagering agreement. Partnership was found to be legal however the business was found to be wagering.
Frost v Knight
Defendant promised to marry woman after the death of his father. He married someone else when the father was still alive/ expressed that he was going to marry someone else. Woman was entitled to sue as it was an anticipatory breach.
Pym v Campbell
Campbell agreed to purchase 3/8 of the profits to accrue from Pym’s invention. Invention did not get approved. Campbell refused to pay. Pym sued for breach. Decided that the contract was contingent on approval.
