THE FORESIGHT OF A PROPHET

The doctrine of Presumed Intent came to light in British Movietonenews v London

and District Cinemas case. In it, some film distributors agreed to supply their
newsreels to cinemas during wartime in 1941. But when the war ended in 1946 the
situation was completely different and the cinema companies refused to take any
more films at the previously agreed price.

Lord Denning then explained that when the contracts are framed in words and
covers the events taking place, it does not mean that they would apply and follow
the new situation which both the parties as reasonable people have not anticipated
about. Then the Court will read the words of the contract in a qualified sense, that
is, the same contract will be valid and restricted according to the anticipation of the
parties and not for the uncontemplated turn of events. This accordingly would be
considered as just and reasonable.

This principle was same as the suspension clauses used in the frustration cases. It
recognizes the fact that parties while making the contract are concerned about the
main context of the contract rather than their intentions or the situations that they
have never thought about. Therefore, the court refused to apply it literally onto the
unanticipated events.

This doctrine does not imply that the contracts made deliberately will not be
followed, it simply implies that they will not allow the words to become the
tyrannical masters. If the terms of the contract are absolute and just, even though
the intention wasn’t, the contract will not be held absolute in effect. Lord Denning
further said the we cannot credit a party with the foresight of a prophet or a lawyer
by blaming and questioning him that he must have protected himself from this
situation or must have thought while making the contract. Therefore, it is always
said that one must not rely upon the words while constructing a contract but one
must ought to focus upon the substance matter of it.

So, the above stated principles were applied in the case and was in the favor of the
cinema companies as the war was to end some day and so does the validity of the
contract which could not definitely be enforced for a lifetime.