Professional Documents
Culture Documents
Result
Acceptance of R v Clarke The Government offered a The court dismissed the case. There
offer has to be [1927] reward for information cannot be assent without knowledge
communicated. leading to the arrest of of the offer; and ignorance of the
certain offer is the same thing whether it is
murderers and a pardon to due to never hearing of it or
an
accomplice who gave the forgetting it after hearing."
information. Clarke saw
the
proclamation. He gave
information which led to
the
conviction of the
murderers.
He admitted that his only
object in doing so was to
clear
himself of a charge of
murder
and that he had no
intention
of claiming the reward at
that
time. He sued the Crown
for
the reward
. Dickinson Dodds offered to sell his As the Claimant knew that the
Revocation v Dodds house to Dickinson, the defendant was no longer in a
can [1876] offer position
be being open until 9am to sell the property to him the
communicated Friday. defendant had drawn his offer
by a reliable On Thursday, Dodds sold validly. It was impossible,
source. the therefore,
house to Allan. Dickinson to say there was ever that existence
was told of the sale by of the same mind between the two
Berry, parties which is essential in point of
the estate agent, and he law to the making of an agreement.
delivered an acceptance
before 9am Friday.
Offer does not A father bought a house on The father's promise was a
laps with death Errington mortgage for his son and unilateral
of offeree and v daughter-in-law and contract - a promise of the house in
remains valid Errington promised them that if they return for their act of paying the
if [1952] paid off the mortgage, they installments. It could not be
consideration could have the revoked
is house. They began to do by him once the couple entered on
being made. this but before they had performance of the act. The couple
finished paying, the father was entitled to continue paying the
died. His widow claimed installments and claim the house
the house. when the mortgage has been fully
paid off.
A Counter Hyde v .6 June W offered to sell Held that if the defendant's offer
Offer Revokes Wrench his to sell for £1,000 had been
the original [1840] estate to H for £1000; H unconditionally accepted, there
offer. offered £950 27 June W would have been a binding
rejected H's offer 29 June contract; instead the plaintiff
H made an offer of his own of £950,
offered £1000. W refused and thereby rejected the offer
to previously made by the defendant.
sell and H sued for breach It was not afterwards competent
of contract for the plaintiff to revive the
proposal of the defendant, by
tendering an acceptance of it; and
that, therefore, there existed no
obligation of any sort between the
parties.
Products on Fisher v A shopkeeper displayed a The knife had not, in law, been
display are Bell [1960] flick knife with a price tag 'offered for sale. According to the
only an in the window. The law of contract the display of an
invitation to Restriction of Offensive article with a price on it in a shop
treat and not Weapons Act 1959 made it window is merely an invitation to
an offer. an offence to 'offer for sale' treat. It is in no sense an offer for
a 'flick knife'. The sale the acceptance of which
shopkeeper was prosecuted constitutes a contract.
in the magistrates' court
An Offer Harvey v The plaintiff sent a It was held that the defendant’s
must be Facey telegram telegram was not an offer but
distinguished [1893] to the defendant to sell simply an indication of minimum
from a mere property. Telegraph lowest price the defendant would want.
supply of cash price. The defendant
information reply was “lowest cash
price
is £900”. The plaintiff
telegraphed “we agree to
buy ….. for £900 asked by
you”.
Acceptance Yates Offeror asked for the offer The offeror had
is valid if buildings v to be accepted by registered suffered no
sent in time RJ post the offeree accepted the disadvantage in
by any more Pulleyn by an ordinary letter which a way that the
unless & Sons arrived promptly offer had been
exclusively [1975] accepted as the
specified. offeror did not
. put a condition
specifying that
the acceptance
could only be
made by
registered
post the
acceptance was
valid.
Performance Stilk v Two out of eleven sailors As the sailors were already
of existing Myrick deserted a ship. The bound by their contract to sail
Performance Hartley v A high number of desertions The promise of extra money was
beyond Ponsonby from a merchant ship recoverable by seaman who
existing duty [1857] rendered the vessel remained loyal since they were
amounts to unseeworthy, undermanned now working in a dangerous
consideratio since extra pay was offer to situation (they were doing more
n. the crew if they remain than required in there original
loyal contract)
Past Re McArdle A wife and her three It was held that the promise
consideratio [1951] grown-up children lived was unenforceable as all the
Privity of Tweddle v The claimant’s father and Son-in-law could not sue because
contract: Atkinson father-in-law agreed with he had not provided
Only parties [1861] each other to pay the consideration.
to the claimant £100 and £200 in
contract can consideration of his then
sue each intended marriage and after
other. the marriage had taken
place they confirm their
agreement in writing. £200
was not paid and the
claimant sued his
father-in-law
Performance Shadwell v C promised his nephew, A, The promise was binding, even
of an Shadwell an allowance if he would though A was already obliged to
existing [1860] marry his fiancée, B (In marry B. A had provided
contractual those days an agreement to consideration for the uncle’s
obligation is marry was legally binding). promise as he was initially under
sufficient a duty to fiancée not to uncle, but
consideratio by entering into the agreement
n to support with the uncle he had put himself
a promise under an obligation to him too.
from a third
party.
Pinnel’s Foakes v Mrs Beer had obtained The interest was recoverable.
case: Beer [1884] judgment for a debt of £ Payment & satisfaction of a
Payment by D&C The Ps, a small building It was held that the company was
cheque gives Buildings company, had completed entitled to succeed. The judge was
no benefit Rees some work for Mr. Rees for of the view that it was not unfair
over and [1965] which he owed the company for the creditors to go back on
above £482. For months the their word and claim the balance
payment in company, which was in as the debtor had acted unjustly
cash ( a severe financial difficulties, by exerting improper pressure.
lesser sum is pressed for payment.
not a good Eventually, Mrs. Rees, who
consideratio had become aware of the
n for a company's problems,
higher sum). contacted the company and
offered £300 in full
settlement. She added that if
the company refused this
offer they would get
nothing. The company
reluctantly accepted a
cheque for £300 "in
completion of the account"
and later sued for the
balance.
Doctrine of Central In 1937 the Ps granted a 99 It was held that they were entitled
promissory London year lease on a block of flats to recover this money as their
The doctrice Combe v A husband entered into a The wife was not a in apposition
of Combe [ contract promising his wife to enforce the agreement as she
promissory 1951] to pay £ 100.00, free of lacked consideration on her part.
estoppel income tax, after their The equitable doctrine did not
does not divorce. The wife did not create a new cause of action
create a new apply to the court for a where none existed before.
cause of maintenance order, but
action where when the husband failed to
non existed implement his promise she
before. sued to enforce the
agreement relying on his
promise and the doctrine of
promissory estoppel.
A statement Bannerman A buyer of hops asked by The court decided that the sulphur
of quality v white the seller whether sulphur was a vital part of the contract.
based upon [1977] had been used in the Around which the whole deal
which a treatment and added that if revolved it was a term.
contract is it had he will not buy. The
made as far seller assured him that
as buyer is sulphur had not been used.
concerned, Sulphur had been used.
considered a
term.
The A wharf (dock) owner made The court implied a term into the
Moorcock an agreement to permit a agreement that the river bottom
Breach of a Bitteni v A tanner Bitteni who added The obligation to appear in the
warranty Gye [1876] to sign in a series of rehearsal was a mere warranty and
does not concerts and to attend 6 days Bitteni breach could not be treated
make the of rehearsals as an end of the contract. Gye was
contract beforehand failed to appear accordingly in the breach of
void. for the first 4 days of contract when he refused Betteni
rehearsal Gye in services for the remainder of the
consequence refused Bitteni contract.
services for the balance of
the rehearsal and
performances Bitteni sued
for the breach of contract.
A non Hansa
serious Nord
breach of an [1976]
innominate
term can
only result in
claim for
damages.
An exclusion Olley v A notice in a hotel room This was ineffective because the
clause Marlborou excluded liability for loss or contract for accommodation had
Only natural Hadley v A carrier was given a He was not liable for the loss of
losses Baxendale mill-shaft to deliver to a profit and the rule was formulated
reasonably [1854] plant manufacturer as a as follows:
foreseeable model for making a new � The loss should be such as
by a shaft the carrier delayed in may fairly and reasonably be
bystander delivery and unknown to considered either arising
can be him the mill stood idle naturally, from the breach of
claimed for. during the period of delay. contract, or as may reasonably
be supposed to have been in
contemplation of both parties
at the time they made the
contract.
There are two types of loss for
which damages may be
recovered:
General damage - normal loss.
Special damages - abnormal
loss.
A company Salmon v Salmon had been in the boot House of lord held that since there
is a separate Salmon & and leather business for was no fraud involved his
legal entity company some time together with debentures were valid the
having its Ltd. [1897] other family members he company was properly constituted
own assets sold the old business to his and therefore it was a separate
and newly formed Ltd. legal personality from Salmon.
liabilities. company. Payment was in
form of cash shares and
debentures when the
company was eventually
winded up it was agreed
that Salmon and the
company was the same and
he could not be the creditor
of his own so his debentures
would not have any effect.
A company Lee v Lee’s An aerial crops spraying Although he was majority share
is a separate Air business in which Mr. Lee holder and the sole working
A sham Jones v L agreed to sell some land The company was sham and
company is Lipman to J, L than changed his specific performance extended not
also liable [1962] mind and in order to evade only to L but also to the company.
along with specific performance sold
the related the land to a company of
violator. which he was a controlling
member.
Court is not Adams v Cape, an English registered It was unsuccessfully argued that
free to this Cape company was involved in the veil should be lifted between
regard the industries mining asbestos(a form of the companies so as to enabled the
principle of [1990] mineral) in south Africa and judgement to be enforced against
Salomon v marketing it world wide to cape.
Salomon various subsidiaries one of
unless its marketing subsidiaries,
carefully CPC, a company
watched. incorporated and carrying
on business in the U.S had a
court judgment against it.
Fortnum & The claimant, a well known There was no evidence that any
Mason Ltd. store in Piccadilly, London costumer of the claimant store
v Fortnum bought an action in the tort would buy the defendants good
Ltd. [1995] of passing off, against the thinking they were the claimants
defendant. The defendant therefore the action failed.
carried on business as an
importer of low price to
goods from Hong Kong and
China and then exported to
Europe. The defendant did
not apply its name to the
goods themselves
Any contract Ashbury The objects clause of the The contract was ultra virus and
not Railways company set out purpose of beyond the capacity of the
Failure of German There was a failure to carry The company would be wound
substratum date coffee out the object of making up.
may result in Co. [1882] coffee from dates by means
winding up of a German patent
of company. (although the company did
manufacture it with a
Swedish patent).
The articles Hickman v The Co.’s articles included The proceedings were stayed. The
in all Kent [1920] a clause to the effect that all Company could enforce the
respects are disputes between the arbitration clause against a
enforceable company & its members member.
by company were to be referred to
against its arbitration. A member
members. brought court proceedings
against the Co.
An alteration Greenhalgh The issue was the removal The benefit to the company as
of articles of v Alderne from the articles of the whole held to be a benefit which
association Cinemas members’ right of first any individual hypothetical
can be made [1950] refusal of any shares which member of the company could
in the best a member might wish to enjoy directly or through the
interest of transfer; the majority wish company & not merely a benefit
the to make the change in order to the majority of the members
company. to admit an outsider to only.
membership in the interest
of the company.
An alteration Sidebottom The alteration was to expel The alteration was held valid.
of articles of b Kershaw a member who carried on a
Company Aleen v Z held fully paid & partly It was held that the Co. had the
has the Gold Reefs paid-up capital in the power to alter its articles by
power to [1900] company. The Co.’s articles extending the lien to fully paid
alter its provided for a lien (a right shares. Alteration to the articles is
AOA with a over another’s property to only subject to the alteration by
retrospective protect a debt charged on S9 CA 1985. Rights in the articles
effect. that property.) for all debts are limited as to their duration by
& liabilities of any member the articles which confer them.
upon all partly paid shares
held by the member. The
Co. by special resolution
altered its articles so that the
lien was available on fully
paid-up shares as well.
Claim can be South A managing director was The court awarded them damages
made on Foundries appointed under contract for wrongful dismissal since the
breach of a ltd. v with a company for ten alteration of the articles, although
service Shirlaw years but, after the articles effective, constituted a breach of
agreement [1940] had been changed their contract of service; it was
due to empowering his removal as contrary to the agreement that he
alteration of director, he was dismissed. should serve for ten years, which
the articles. became impossible when he lost
their directorship.
Raising Clemens v P held 45% of the shares, d The fact revealed that the director
Share Clemens held 55%. D along with with majority shareholders were
The directors Percival v Some Shareholders asked The director owe a fiduciary duty
owe no Wright Co.’s secretary for any party to company but not to individual
general duty [1902] interested to buy their shareholders, so under no duty
to individual shares – Shareholders then does the director is liable to act
members. sold shares to Chairman. for the best interest of an
Later it was revealed that at individual. Co. could have sued
the time of negotiation, the director if any would have
directors were engaged with done.
a party for sale of shares at
a price which was
considered to be high of the
current deal. The
shareholders wished to return
back.
Directors Cook v Shares of the railway Co. It was held that Directors could
cannot attain Deeks [ (T) were equally divided on not retain benefits of the Co. (T)
any benefit 1916] its directors. The company to themselves. The director could
from there got a contract. Three not use their voting control to
office by directors of (T) were not bring a loss to the minority.
breaching willing the Co. to have the
their contract. They formed
fiduciary another company (D) just
duties. because of getting a new
contract. These directors
later sold a plant by
majority voting to D. Others
directors sued.
Director Regal Regal (hasting) ltd. owed a It was held that Directors used
cannot make (hasting) cinema & wished to buy their special knowledge to gain
A director Aberdeen Co. Contracted for chair Company was entitled for
should not Railway v from a claimant partnership. avoiding the contract. No question
be allowed Blaikie (of which the director was a should be raised for fairness /
to contract [1854] member). The director was unfairness of the contract.
with his own interested at both sides but
company. couldn’t bargain for the
company.
A Company Panorama Co.’s secretary of the The contract was binding, since
secretary Developme defendant ordered a hiring of cars was usual to the
End of Cases
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