Case Studies/Situations

in
Business Law
How to attempt in exam…
Case: Balfour v Balfour
Facts:

The defendant was a civil servant working in Ceylon (Sri Lanka). When he was home on
leave in England, it was agreed his wife would remain in England while he would return
to Ceylon and he promised to pay her money each month for living expenses. The
defendant breached this agreement and his wife sued him, alleging breach of contract.

Decision:

The court held that there was no intention to create legal relations due it being a
domestic agreement. There was no contract.
Case: Wakeling v Ripley
Facts:

Ripley was a bachelor who lived in Sydney. The plaintiffs were Ripley’s sister and her
husband, who was a university lecturer in England. Ripley tried to convince his sister to
move to Australia. He promised to give a home and living if they moved to Australia. And
that he would leave all property to his sister on his death. The sister and her husband
agreed. They sold their house and the husband resigned from his job.
After being in Australia for a year, the parties had a serious fight and Ripley sold his house
and cut the sister out of his will. The plaintiffs sued for breach of contract.

Decision:

The court held there was intention to create legal relations despite the fact it was made
between family members. The plaintiffs had sacrificed a lot by leaving a job and moving
to Australia. Therefore they could sue for a breach of contract.
Case: Boots Cash Chemists case
Facts:

Boots chemists opened up a self service chemist shop. Customers could choose medicines
and take them to the cash register. Previously medicines were always kept behind the
counter. The pharmaceutical society argued that the display of medicines was an offer that
was accepted when the customer selected one of them. This was before they could be
checked by the pharmacist. They argued that this breached regulations saying that medicines
need to be checked by the pharmacist.

Decision:

Goods on display were an invitation to treat. An offer is made when the customer takes the
goods to the pharmacist for checking and then to the register for payment.
Case: Carlill v Carbolic Smoke Ball Co
Facts:

An advertisement was placed in several magazines offering a sum of money to any reader who
contracted a cold or flu from using the company’s carbolic smoke ball three times a day for two weeks.
The offer was made to anyone reading the advertisement.

Decision:

The court held this was an offer to the world at large and that the plaintiff had a right to claim the
money as she had accepted the offer.
Case: R v Clarke
Facts:

A reward was offered for information leading to the arrest and conviction of persons responsible for the
murder of two policemen. On June 6 two persons X and Y were arrested and charged with murder of the
policemen. On June 10 Y gave evidence leading to the conviction of X and another person Z. for the
murders. Y was released and claimed the reward.

Decision:

The court found that Y had only produced information to the police in order to escape the murder charge.
Y did not accept in reliance of the offer when he gave information so there was no acceptance of the
offer of a reward. He could not claim the reward.
Case: Roscorla V Thomas
Facts:

Roscorla purchased a horse from Thomas. After the contract was completed, Roscorla demanded a
promise from Thomas that the horse was healthy. The promise was given and later it was found that
the horse was sick. Roscorla sued for breach of contract.

Decision:

There was no consideration because the contract had already been completed before the promise was
made. Therefore it was past consideration. There was no breach of contract because the promise
was not a valid consideration
Thank
You..!