XYZ v Various (Including Transform Medical Group (CS) Ltd and Spire Healthcare Limited) and Others: QBD 3 Dec 2014

The court considered further direction in a personal injury claim involving over 1,000 women complaining of the breast implants supplied by the defendants. The claimants wanted the defendant’s insurers to be joined so as to ascertain the viability of the action.
Held: A claimant must take the defendant as he finds him. Application refused.

Thirlwall DBE J
[2014] EWHC 4056 (QB)
Bailii
Supply of Goods and Services Act 1982 4(2), Civil Procedure Rules 19.2

Personal Injury, Contract, Litigation Practice

Updated: 24 December 2021; Ref: scu.539750

Rendlesham Estates Plc and Others v Barr Ltd: TCC 28 Nov 2014

The claimants owned two blocks of apartments. One contractor was unable to complete the buildings, and the defendant stepped in undertaking to complete the project within the original budget, subject to a reduction in the specifications. The owners complained that the final products were not to an acceptable standard.

Wdwards-Stuart J
[2014] EWHC 3968 (TCC)
Bailii

Contract

Updated: 24 December 2021; Ref: scu.539384

Trentham And Another, Executors Of Thomas Crowder, Deceased, v Deverill: 14 Jan 1837

A witness, who said he settled all kinds of accounts for Defendant, admitted that an account containing a memorandum of a payment on the part of Defendant was in his own handwriting, but said he could not recollect the fact of payment.
Held: Nevertheless, that there was evidence to go to a jury, as to the fact of payment.

[1837] EngR 383, (1837) 3 Bing NC 397, (1837) 132 ER 463
Commonlii
England and Wales

Contract

Updated: 23 December 2021; Ref: scu.313500

Hodges v Aegis Defence Services (BVI) Ltd: CA 12 Nov 2014

Appeal against dismissal of claim with costs. The claimant was personal representative of her husband’s estate. He had been employed by the defendants to provide support and security escort to US personnel based in Iraq under a contract for services. He had died carrying out those services. The court was asked to construe the defendant’s obligations.
Held: The appeal failed (Vos LJ dissenting). The contract stated expressly that the engagement was on the terms of the contract of engagement and the other documents mentioned: ‘the cover to be provided under the contract was that provided under the policies themselves whose terms were expressly to prevail at all times. Moreover, none of the contractual documents or the policies indicate that a minimum lump sum of $200,000 would be payable . . the insured and any person claiming through him could only rely upon the benefits conferred by the policies, which were the lump sums provided by them (in varying circumstances) and the benefits payable under the DBA policy. . . She has duly received benefits in excess of $200,000 and is not, therefore, entitled to more.’

Longmore, McCombe, Vos LJJ
[2014] EWCA Civ 1449
Bailii
Unfair Contract Terms Act 1977 3(2)(b)(I)
England and Wales
Citing:
CitedGeorge Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd HL 1983
A seedsman sought to rely upon an exclusion clause preventing any claim by a purchaser by way of set off against its sales invoices. The House was asked whether a contractual term was ‘fair and reasonable’ within the meaning of section 55 of the . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 23 December 2021; Ref: scu.538700

Various Claimants v Giambrone and Law (A Firm) and Others: QBD 7 Jul 2015

The claimants sought damages after the defendant had sold them time share interests in property in Italy. The purchases were made ‘off-plan’, but the buildings wree never completed. The defendant law firm had in each case been engaged to act for them.

Foskett J
[2015] EWHC 1946 (QB)
Bailii
England and Wales

Consumer, Contract, Land

Updated: 23 December 2021; Ref: scu.550082

Statek Corporation v Alford and Another: ChD 17 Jan 2008

Evans-Lombe J said: ‘In my judgment, section 21(1) of the Limitation Act 1980, following the decision of Mr Justice Danckwerts in the G.L. Baker Ltd case and the obiter dicta of Lord Esher and Bowen LJ in Soar v Ashwell, is to be construed as applying to accessories to the fraudulent breaches of trust of others with the result that no period of limitation is applicable to claims against them. I do not read the decision of the House of Lords in the Dubai Aluminium case as authority to the contrary.’

Evans-Lombe J
[2008] EWHC 32 (Ch)
Bailii
Limitation Act 1980 21(1)
England and Wales
Cited by:
CitedWilliams v Central Bank of Nigeria QBD 8-Apr-2011
The claimant had been defrauded by a customer of the defendant bank. He brought a claim against the bank, saying that they knew or ought to have known of the fraudster’s activities, and were liable. The Bank denied that the UK courts had . .

Lists of cited by and citing cases may be incomplete.

Contract, Company, Limitation

Updated: 23 December 2021; Ref: scu.263773

Revenue and Customs v Dempster (T/A Boulevard): ChD 24 Jan 2008

The revenue wished to refuse a claim to set off input tax for two transactions involving the alleged purchase of software. They said the transactions were a sham.
Held: The revenue’s appeal failed.
Briggs J said: ‘the critical question whether a transaction which, as documented, appears to attract certain VAT consequences is to be deprived of those consequences because it is a sham, is whether the rights and obligations expressed in the documents, to the extent relevant for VAT purposes, are different from those which the parties intended to confer and incur. ‘ In this case the tribunal had not decided that the taxpayer was party to a fraud, since it had not been asserted that he was: ‘it is a cardinal principle of litigation that if serious allegations, in particular allegations of dishonesty are to be made against a party who is called as a witness they must be both fairly and squarely pleaded, and fairly and squarely put to that witness in cross examination.’
Before a finding of dishonesty can be made it must not only be pleaded, but also put in cross-examination. Briggs J considered a submission that dishonesty having been pleaded it had not been necessary to put the allegation to the defendant, and said: ‘I emphatically disagree with that submission. First, the Tribunal’s summary of what was not put in cross examination is stated with clarity on no less than three occasions in the Decision and I was provided neither with a transcript, nor notes (whether by the Tribunal itself or by the parties) of the cross examination with which to be in any position to conclude that the Tribunal’s summary of the cross examination was other than fair and accurate. Secondly, it is a cardinal principle of litigation that if serious allegations, in particular allegations of dishonesty are to be made against a party who is called as a witness they must be both fairly and squarely pleaded, and fairly and squarely put to that witness in cross examination. In my judgment the Tribunal’s conclusion that it was constrained, notwithstanding suspicion, from making the necessary findings of knowledge against Mr Dempster (necessary that is to permit the consequences of the alleged sham to be visited upon him) was nothing more nor less than a correct and conventional application of that cardinal principle.’

Briggs J
[2008] EWHC 63 (Ch), [2008] STC 2079
Bailii
England and Wales
Citing:
CitedSnook v London and West Riding Investments Ltd CA 1967
Sham requires common intent to create other result
The court considered a claim by a hire-purchase company for the return of a vehicle. The bailee said the agreement was a sham.
Held: The word ‘sham’ should only be used to describe an act or document where the parties have a common intention . .
CitedStone (HM Inspector of Taxes) v Hitch and others CA 26-Jan-2001
As an exception to the general rule, it is not invariably necessary to show, in relation to multi party transactions, that every party to it knew it was a sham.
Arden LJ said: ‘Third, the fact that the act or document is uncommercial, or even . .
CitedRegina v Commissioners of Customs and Excise ex parte McNicholas Construction Co Ltd Admn 15-Oct-1996
Where there was no real transaction underlying a claim for VAT credit, no VAT credit can be claimed.
Dyson J said: ‘the words ‘to the best of their judgment’ permit the commissioners a margin of discretion in making an assessment; a taxpayer . .
CitedEnsign Tankers (Leasing) Ltd v Stokes (Inspector of Taxes) HL 6-May-1992
The appellants entered into partnerships with a film production company. By doing so they intended to make available to themselves first year allowances on the capital expenditure incurred. Loan agreements protected them from any eventual loss.
Cited by:
CitedAbbey Forwarding Ltd v Hone and Others ChD 30-Jul-2010
. .
CitedLondon Borough of Haringey v Hines CA 20-Oct-2010
The authority sought rescission of a lease granted to the defendant under the right to buy scheme, saying that she had misrepresented her occupation when applying. The tenant replied that no adequate evidence had been brought that she was not a . .

Lists of cited by and citing cases may be incomplete.

VAT, Contract, Litigation Practice, Natural Justice

Updated: 23 December 2021; Ref: scu.263853

Kalatara Holdings Ltd v Benedict Thomas Andersen and Another: Chd 25 Jan 2008

The claimant sought specific performance of a contract to buy land from the defendant. The defendant sought summary dismissal of the claim and forfeiture of the deposit. It had been intended that the property would be ‘rolled over’ on a sub-sale. The owner refused to execute a transfer into the name of the eventual purchaser.
Held: The arrangements would have been possible, and the defendants’ failure amounted to a breach of contract. The defendants were not entitled to rescind the contract and forfeit the deposit.

Evans-Lombe J
[2008] EWHC 86 (Ch)
Bailii
Finance Act 2003 45, Law of Property (Miscellaneous Provisions) Act 1994 2(1)(A)
England and Wales
Citing:
CitedUnion Eagle Limited v Golden Achievement Limited PC 3-Feb-1997
(Hong Kong) The parties had contracted with each other for the sale of land. Completion was to take place on the appointed day at 5:00pm. A ten per cent deposit had been paid, and time had been made of the essence. The seller sought to rescind the . .
CitedRedwell Investments Ltd v 1-3 Cuba Street Ltd CA 14-Dec-2005
Lord Justice Chadwick considered what was meant by actual completion: ‘I accept, of course, that there is no absolute rule that completion takes place when title is transferred . . We were referred to no case in which it has been held that . .
CitedAero Properties Ltd and Another v Citycrest Properties Ltd and Another ChD 6-Feb-2002
Contracts were entered into for the sale of five flats. Completion of each contract was conditional upon simultaneous completion of the others. Completion did not occur, and the defendant sellers issued a notice to complete, then rescinded the . .

Lists of cited by and citing cases may be incomplete.

Land, Contract, Stamp Duty

Updated: 23 December 2021; Ref: scu.263878

McMeekin v Long: QBD 4 Oct 2002

The sellers of a property did not disclose potential disputes with their neighbours about parking over an access way and the dumping of rubbish. They claimed that in each case they had taken advice and had accepted it and there had been no further disagreement, and that there had therefore been no dispute. The solicitor in his replies to standard Part II enquiries confirmed that the sellers replies were accurate so far as he knew. It was clear however that the potential for dispute remained and that it had been long running and personal. The form also asked if complaints had ever been received.
Held: The sellers were guilty of a fraudulent misrepresentation. The evidence established to a sufficient standard, that the sellers had acted fraudulently, and, since the claimant would not have purchased the property if they had known of the difficulties, they had relied upon the misrepresentations and could claim in damages. Damages of andpound;67,000 were awarded.

Astill J
[2003] 29 EG 120
England and Wales

Torts – Other, Contract

Updated: 23 December 2021; Ref: scu.186766

Fry v Lane: QBD 1888

A court should be ready to set aside unconscionable transactions with ‘poor and ignorant persons’ where there had been no independent advice.

[1888] 15 Ch D 679
England and Wales
Cited by:
CitedChagos Islanders v The Attorney General, Her Majesty’s British Indian Ocean Territory Commissioner QBD 9-Oct-2003
The Chagos Islands had been a British dependent territory since 1814. The British government repatriated the islanders in the 1960s, and the Ilois now sought damages for their wrongful displacement, misfeasance, deceit, negligence and to establish a . .
Appeal fromFry v Lane, re Fry, Whittet v Bush CA 1889
Sales of reversionary interests at considerable undervalues by poor and ignorant persons were set aside. ‘The result of the decisions is that where a purchase is made from a poor and ignorant man at a considerable undervalue, the vendor having no . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 23 December 2021; Ref: scu.186676

Foakes v Beer: HL 16 May 1884

Mrs Beer had obtained judgment against Dr Foakes for pounds 2,090 19s. He asked for time to pay and they agreed with him, acknowledging the debt, and paying part immediately and undertaking to pay the balance over a period of time. In consideration of the part payment and Dr Foakes’s undertaking to pay the balance in instalments Mrs Beer agreed not to take any proceedings on the judgment. After the whole sum had been paid, however, she sought to take proceedings on the judgment to recover interest.
Held: A promise to pay part of a debt is not good consideration in law. The House applied the rule in Pinnel’s Case that since the obligations undertaken by Dr Foakes under the agreement added nothing to his existing obligation under the judgment, he had provided no consideration for Mrs Beer’s promise not to take action on the judgment which was therefore unenforceable.
Lord Blackburn argued for the abolition of the rule in Pinnel’s case: ‘What principally weighs with me in thinking that Lord Coke made a mistake of fact is my conviction that all men of business, whether merchants or tradesmen, do every day recognize and act on the ground that prompt payment of a part of their demand may be more beneficial to them than it would be to insist on their rights and enforce payment of the whole. Even where the debtor is perfectly solvent, and sure to pay at last, this often is so. Where the credit of the debtor is doubtful it must be more so.’

Lord Blackburn
(1884) 9 App Cas 605, [1884] UKHL 1
Bailii
England and Wales
Citing:
AppliedPinnel’s Case, Penny v Core CCP 1602
Payment of Lesser Sum Not Satisfaction
(Court of Common Pleas) The payment of a lesser sum on the day in satisfaction of a greater, cannot be any satisfaction for the whole. The gift of a horse, hawk, robe, etc., in satisfaction, is good. Payment of part before the day and acceptance may . .

Cited by:
CitedBradford and Bingley Plc v Rashid HL 12-Jul-2006
Disapplication of Without Prejudice Rules
The House was asked whether a letter sent during without prejudice negotiations which acknowledged a debt was admissible to restart the limitation period. An advice centre, acting for the borrower had written, in answer to a claim by the lender for . .
CitedCollier v P and M J Wright (Holdings) Ltd CA 14-Dec-2007
Agreement for payment by joint debtor not contract
The claimant appealed against refusal of an order to set aside a statutory demand. He said that he had compromised a claim by the creditors. He argued for an extension to the Rule in Pinnel’s case, so that where a debtor agrees to pay part of a . .
AppliedIn Re Selectmove Ltd CA 21-Dec-1993
Promisse to Pay Tax due is not Consideration
The company appealed against an order for its winding up, saying that the debt was disputed, an accomodation having been reached with the Revenue.
Held: The court declined to regard a promise to the Revenue by a company to pay its existing . .
CitedHirachand Punamchand v Temple CA 1911
The defendant, a British army officer in India, had given a promissory note to the plaintiff moneylenders. Unable to pay, he suggested they apply to his father, Sir Richard Temple. In reply, Sir Richard Temple’s solicitors wrote saying they were . .
For Examination laterRock Advertising Ltd v MWB Business Exchange Centres Ltd SC 16-May-2018
The parties disputed whether a contract (licence to occupy an office) had been varied by an oral agreement, where the terms prohibited such.
Held: The ‘no oral variation’ clause applied. Such clauses were in common commercial use and served a . .
CitedWilliams v Roffey Brothers and Nicholls (Contractors) Ltd CA 23-Nov-1989
The defendant subcontracted some of its work under a building contract to the plaintiff at a price which left him in financial difficulty and there was a risk that the work would not be completed by the plaintiff. The defendant agreed to make . .

Lists of cited by and citing cases may be incomplete.

Litigation Practice, Contract

Leading Case

Updated: 23 December 2021; Ref: scu.243134

Inland Revenue Commissioners v Fry: ChD 30 Nov 2001

The Commissioners chased a liability to tax of over andpound;100,000. The taxpayer’s husband sent a cheque, expressed to be in full and final satisfaction for a much lower sum. It was cashed, and the Commissioners now sought payment of the balance.
Held: The claim succeeded. There had been no meeting of minds such as would operate to reduce the overall sum due. The cheque had been paid in after being separated from the letter containing the terms suggested. A tax payer’s liability to tax was not satisfied when the Revenue encashed a cheque accompanied by a letter saying it had been sent in full and final settlement of a larger sum and was to be encashed only in settlement. The cashing of the cheque gave rise only to a rebuttable presumption of acceptance. That presumption had been rebutted.

Justice Jacob
Times 10-Dec-2001, Gazette 06-Feb-2002, [2001] All ER (D) 434 (Nov)
England and Wales

Income Tax, Contract

Updated: 23 December 2021; Ref: scu.166978

Coggs v Bernard 839: 1795

hogshead of brandy

[1795] EngR 839, (1795) 1 Salk 26, (1795) 91 ER 25 (B)
Commonlii
England and Wales
Citing:
See AlsoCoggs v Bernard 1703
The defendant had care of the plaintiff’s cask of brandy. He broke the cask and spilt the brandy.
Held: A bailment can exist notwithstanding that it is gratuitous, i.e. without consideration passing from the bailor to the bailee. The . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 23 December 2021; Ref: scu.353184

Gurgur v Rees and Others: ChD 28 May 2021

Whether the court has jurisdiction to make a declaration as to the interpretation of a settlement agreement contained in a schedule to a Tomlin order. The judge held that he did have jurisdiction to do so, and made a declaration interpreting the agreement in favour of the respondents.

[2021] EWHC 2181 (Ch)
Bailii
England and Wales

Contract

Updated: 23 December 2021; Ref: scu.669808

T Clarke (Scotland) Ltd v Mmaxx Underfloor Heating Ltd: SCS 15 Oct 2014

A reclaiming motion by the pursuer against an interlocutor by which the Lord Ordinary refused to grant interim interdict against the respondent and defender from referring for adjudication any disputes arising from a contract between the pursuer and the defender.

Lord Eassie, Lord Bracadale, Lord Drummond Young
[2014] ScotCS CSIH – 83
Bailii

Scotland, Contract

Updated: 22 December 2021; Ref: scu.538177

Haeger and Schmidt GmbH v Mutuelles du Mans assurances IARD: ECJ 23 Oct 2014

ECJ Judgment – References for a preliminary ruling – Reference for a preliminary ruling – Rome Convention on the law applicable to contractual obligations – Article 4(1), (2), (4) and (5) – Law applicable by default – Commission contract for the carriage of goods – Contract for the carriage of goods

Ilesic P
C-305/13, [2014] EUECJ C-305/13
Bailii

European, Contract, Transport

Updated: 22 December 2021; Ref: scu.538005

Northrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Ltd: TCC 8 Sep 2014

‘The Claimant sought declarations as to the entitlement of the Defendant to terminate an ‘Agreement for Deployment Licences and associated Software Support’ dated December 2010′

Ramsey J
[2014] EWHC 2955 (TCC)
Bailii
Cited by:
See AlsoNorthrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Ltd (No 2) TCC 3-Oct-2014
‘on a true construction of the Licence Agreement, BAE was entitled to terminate that agreement for convenience under the provisions of Clause 10.4 of the Enabling Agreement which governed the Licence Agreement.’ . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 22 December 2021; Ref: scu.537342

Northrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Ltd (No 2): TCC 3 Oct 2014

‘on a true construction of the Licence Agreement, BAE was entitled to terminate that agreement for convenience under the provisions of Clause 10.4 of the Enabling Agreement which governed the Licence Agreement.’

Ramsey J
[2014] EWHC 3148 (TCC)
Bailii
England and Wales
Citing:
See AlsoNorthrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Ltd TCC 8-Sep-2014
‘The Claimant sought declarations as to the entitlement of the Defendant to terminate an ‘Agreement for Deployment Licences and associated Software Support’ dated December 2010′ . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 22 December 2021; Ref: scu.537343

Redd Factors Ltd v Bombardier Transportation UK Ltd: QBD 6 Oct 2014

The claimant sought payment under a contract for train seats supplied to the defendant. It had taken an assignment of the debt from the manufacturer.

Dingemans J
[2014] EWHC 3138 (QB)
Bailii
England and Wales
Citing:
CitedHanak v Green CA 1958
A builder was sued for his failure to complete the works he had contracted for. The buider sought a set-off against that claim of three of his one claims. One, under the contract, was for losses from the defendant’s refusal to allow his workmen . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 22 December 2021; Ref: scu.537357

Hurley Palmer Flatt Ltd v Barclays Bank Plc: TCC 23 Sep 2014

The court was asked as to the extent to which the rights of a third party enforceable under the Contracts (Rights of Third Parties) Act 1999 can be determined by adjudication under an express term contained within the agreement between the original contracting parties. The issue requires consideration of the relevant agreement, the 1999 Act and the nature of adjudication proceedings.

Ramsey J
[2014] EWHC 3042 (TCC)
Bailii
Contracts (Rights of Third Parties) Act 1999

Contract

Updated: 22 December 2021; Ref: scu.537341

Crest Nicholson Residential (South) Ltd v McAllister: ChD 18 Nov 2002

A vendor/purchaser covenant was not to use the premises, ‘for any purpose other than those of or in connection with a private dwellinghouse.’ The parties requested the court to construe its meaning. The meaning had been considered before and settled although it was said that the words remained ambiguous.
Held: There was a substantial advantage to parties to legal documents knowing in advance the meaning of their documents. Certainty avoided risk, doubt and legal costs. Accordingly even though the court should recognise the real dangers of transporting interpretations from one document to another, where a phrase had had assigned a clear meaning by the Court of Appeal, the court should depart from that interpretation only with good reason.
Neuberger J said that the covenant prevented the erection of more than one dwelling house on a plot. He emphasised the importance of the wording of the particular covenant and its circumstances, and further that that the use of the indefinite article ‘a’ connotes or may connote some form of singularity. Further, it was desirable that, for the guidance of practitioners, words used in covenants should have a consistent meaning. In Dobbs -v- Linford an assumption had been made, subject of course to the context, that the expression ‘a private dwellinghouse’ indicated the limitation of the property to one dwelling house and no more. Neuberger J continued: ‘If, as in the case before me, a plot cannot be used other than for the purposes of a dwelling house, then, as I see it, the covenant is directed to the plot as a whole. If there are two dwelling houses on the plot, then the plot, viewed as a single entity, is not being used for or in connection with ‘a dwellinghouse’, but for or in connection with ‘two dwellinghouses’. However, where, as in Briggs’ case, [that being a reference to Briggs and another v McCusker [1996] 2 EGLR 197] the covenant also extends to ‘any part’ of the plot or, even more, ‘any buildings . . thereon’, it is rather easier to contend that the draftsman had in mind the notion that any building erected on the plot was either to be a dwelling house or to be used in connection with a dwelling house. I am not saying that that is the correct approach to the covenant in Briggs’ case, but it does appear to me to give a real basis for distinguishing that decision.’

Neuberger J
Times 10-Dec-2002, [2003] 1 All ER 46, [2002] EWHC 2776 (Ch)
Law of Property Act 1925 78
England and Wales
Citing:
CitedFederated Homes Ltd v Mill Lodge Properties Ltd CA 29-Nov-1979
Covenents Attach to entire land not just parts
Conveyances contained restrictive covenants but they were not expressly attached to the land. The issue was whether they were merely personal.
Held: Section 78 made the covenant by the purchaser binding on his successors also. The section . .
CitedShropshire County Council v Edwards 1982
If in the instrument creating a restrictive covenant before 1926, both the land which is intended to be benefited and an intention to benefit that land, as distinct from benefiting the covenantee personally, can clearly be established, then the . .

Cited by:
Appeal fromCrest Nicholson Residential (South) Ltd v McAllister CA 1-Apr-2004
Land had been purchased which was subject to a restrictive covenant. The papers did not disclose the precise extent of the dominant land, the land which benefitted from the restriction.
Held: The land having the benefit of a covenant had to be . .
CitedMohammadzadeh v Joseph and others ChD 15-Feb-2006
The parties disputed whether the defendants owned the benefit of a restrictive covenant.
Held: The covenant did touch and concern the land, and the land with the benefit of covenant. The conditions under Federated Homes were met. The covenants . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 22 December 2021; Ref: scu.178365

Halsall v Brizell: ChD 1957

Land in Liverpool was sold in building plots. The vendors retained the roads and sewers and a promenade and sea wall. A separate deed of covenant of 1851 between the vendors and the owners of the plots which had by then been sold, recited that the retained lands were intended to be left upon trust to be used and enjoyed by the owners of the plots and their successors in title. The owners of the plots by the deed covenanted that they and their successors in title would pay a due proportion of the expenses of maintenance of the roads, sewers promenade and sea wall. That proportion was to be determined in an Annual General Meeting of the owners of the plots. The successors in title of an original covenantor were prepared to pay a contribution in respect of one plot but challenged the validity of a resolution at an Annual General Meeting requiring them to pay several contributions because the building on their plot had been subdivided into flats.
Held: Upjohn J said that the successors in title to the covenantors could not be sued on the covenants, but ‘it is conceded that it is ancient law that a man cannot take benefit under a deed without subscribing to the obligations thereunder.’
and
‘If the defendants did not desire to take the benefit of this deed, for the reasons I have given, they could not be under any liability to pay the obligations thereunder. But, of course, they do desire to take the benefit of this deed. They have no right to use the sewers which are vested in the plaintiffs, and I cannot see that they have any right, apart from the deed, to use the roads of the park which lead to their particular house. The defendants cannot rely on any way of necessity or on any right by prescription, for the simple reason that when the house was originally sold in 1931 to their predecessor in title he took the house on the terms of the deed of 1851 which contractually bound him to contribute a proper proportion of the expenses of maintaining the roads and sewers, and so forth, as a condition of being entitled to make use of those roads and sewers. Therefore, it seems to me that the defendants here cannot, if they desire to use this house, as they do, take advantage of the trusts concerning the user of the roads contained in the deed and the other benefits created by it without undertaking the obligations thereunder. Upon that principle it seems to me that they are bound by this deed, if they desire to take its benefits.’

Upjohn J
[1957] 1 All ER 371, [1957] Ch 169
England and Wales
Cited by:
CitedBhullar and Another v McArdle CA 10-Apr-2001
The defendant had registered a caution against the claimant’s land at the Land Registry. The claimant sought its removal and now appealed an order for rectification of the register against him. The parties had reached oral agreements as to the . .
CitedIDC Group Ltd and others v Clark and others CA 25-Jun-1991
Sir Nicolas Browne-Wilkinson VC reviewed the cases about constructive trust claims summarising the result as follows: ‘That decision [Lyus] was approved by the Court of Appeal in Ashburn Anstalt v Arnold . . The Court of Appeal put what I hope is . .
CitedAllied London Industrial Properties Limited v Castleguard Properties Limited CA 24-Jul-1997
The parties disputed the effect of a conveyance of land from 1985 and an associated deed of variation. The variation added an easement which was argued by the purchaser to have attached to the land, and was said by the vendor to have been personal . .
CitedBeckenham Mc Ltd v Centralex Ltd and others ChD 10-Jun-2004
. .
CitedSchiffahrtsgesellschaft Detlef Von Appen Gmbh v Wiener Allianz Versichrungs Ag and Voest Alpine Intertrading Gmbh CA 16-Apr-1997
. .
CitedBluestorm Ltd v Portvale Holdings Ltd CA 13-Feb-2004
The appellant was a lessee of some premises within a development. They purchased the freehold through a subsidiary but then failed to make repairs. When the other tenants withheld the service charges, the company was liquidated. Another tenant . .
CitedRhone and Another v Stephens HL 17-Mar-1994
A house was divided, the house being retained along with the roof over the cottage, and giving a covenant to repair the roof on behalf of the owner of the house. The cottage owner sought to enforce the covenant against a later owner of the house. . .
CitedTito v Waddell (No 2); Tito v Attorney General ChD 1977
Equity applies its doctrines to the substance, not the form, of transactions. In respect of the rule against self dealing for trustees ‘But of course equity looks beneath the surface, and applies its doctrines to cases where, although in form a . .
CitedRhone and Another v Stephens HL 17-Mar-1994
A house was divided, the house being retained along with the roof over the cottage, and giving a covenant to repair the roof on behalf of the owner of the house. The cottage owner sought to enforce the covenant against a later owner of the house. . .
CitedDavies and Others v Jones and Another CA 9-Nov-2009
The parties contracted for the sale of land for development. The contract allowed for the costs of environmental remediation, but disputed the true figure set by the eventual builder and retained. The court now heard argument about whether the sum . .
CitedThompson v Bee and Another CA 20-Nov-2009
The parties disputed the extent and nature of the use allowed for an unregistered but express right of way. The track had been obtained by use for agriculture. The dominant owner appealed against a finding that it was limited to agricultural use, . .

Lists of cited by and citing cases may be incomplete.

Contract, Land

Updated: 22 December 2021; Ref: scu.189960

Cantrell v Wycombe District Council: CA 29 Jul 2008

The appellant had bought a house at auction. It had previously been sold by a local authority subject to a covenant by the buyer allowing the authority to nominate tenants. The covenant was said to be binding on successors in title, and was registered as a local land charge. The appellant challenged an order that the house remained subject to the covenant.
Held: The burden of a positive covenant does not pass in common law, but only in equity, and therefore only equitable remedies would be available, typically by injunction. Section 609 operated to confer standing on a statutory body, and did not enlarge the extent to which covenants would have been enforceable if the statutory body had had standing under the general law.

Moore-Bick LJ, Stanley Burnton LJ, Lewison J
[2008] EWCA Civ 866, Times 10-Oct-2008
Bailii
Housing Act 1985 609
England and Wales
Citing:
CitedRhone and Another v Stephens HL 17-Mar-1994
A house was divided, the house being retained along with the roof over the cottage, and giving a covenant to repair the roof on behalf of the owner of the house. The cottage owner sought to enforce the covenant against a later owner of the house. . .
CitedGee v National Trust CA 1966
Lord Denning MR considered the effect of section 8 of the 1937 Act which read: ‘Where any person is willing to agree with the National Trust that any land or any part thereof shall so far as his interest in the land enables him to bind it be made . .
CitedInland Revenue Commissioners v Joiner HL 26-Nov-1975
HL Surtax – Tax advantage – Transaction in securities – Company recon- struction – Surplus assets o f old company distributed in voluntary liquidation – Agreement for liquidation providing for agreed methods o f . .
CitedLondon County Council v Allen 1914
A landowner applied to the plaintiffs for their sanction to a new street scheme. It was given but subject to his covenant to keep certain land unbuilt upon. He gave the covenant. The plaintiffs themselves had no land in the area capable of . .

Lists of cited by and citing cases may be incomplete.

Land, Contract

Updated: 22 December 2021; Ref: scu.271221

In re Nisbet and Potts’ Contract: 1905

Where a party asserted he was a purchaser in good faith without notice and for value, the burden of proving all the elements of the defence is upon the purchaser. A title acquired by adverse possession was not paramount to, and did not destroy the equitable right of persons entitled to the benefit of prior restrictive covenants to enforce them against the land.
Farwell J said: ‘Covenants restricting the enjoyment of land, except of course as between the contracting parties and those privy to the contract, are not enforceable by anything in the nature of action or suit founded on contract. Such actions and suits alike depend on privity of contract, and no possession of the land coupled with notice of the covenants can avail to create such privity: Cox v. Bishop (1857) 8 De G.M. and G. 815. But if the covenant be negative, so as to restrict the mode of use and enjoyment of the land, then there is called into existence an equity attached to the property of such a nature that it is annexed to and runs with it in equity: Tulk v. Moxhay, 2 Ph. 774. This equity, although created by covenant or contract, cannot be sued on as such, but stands on the same footing with and is completely analogous to an equitable charge on real estate created by some predecessor in title of the present owner of the land charged. . . . effect is given to the negative covenant by means of the land itself. But the land cannot spend money on improving itself, and there is no personal liability on the owner of the land for the time being, because there is no contract on which he can be sued in contract.’

Farwell J
[1905] 1 Ch 391
Cited by:
CitedBarclays Bank Plc v Boulter and Another HL 26-Oct-1999
The question of whether notice of certain facts amounted to constructive notice of other facts is a question of law. Where it was claimed that a party should be exempt from liability under a document which it was claimed was signed because of . .
Appeal fromIn re Nisbett and Potts Contract CA 1906
The purchaser had agreed to accept a possessory title less than the statutory minimum of 40 years.
Held: Even though he or she extinguishes the estate of the paper owner, a squatter takes subject to the incumbrances on the estate that are not . .
CitedRhone and Another v Stephens HL 17-Mar-1994
A house was divided, the house being retained along with the roof over the cottage, and giving a covenant to repair the roof on behalf of the owner of the house. The cottage owner sought to enforce the covenant against a later owner of the house. . .

Lists of cited by and citing cases may be incomplete.

Litigation Practice, Contract, Land

Updated: 22 December 2021; Ref: scu.197749

Davies and Others v Jones and Another: CA 9 Nov 2009

The parties contracted for the sale of land for development. The contract allowed for the costs of environmental remediation, but disputed the true figure set by the eventual builder and retained. The court now heard argument about whether the sum retained by the sub-purchaser was held on trust for the claimant under the terms of the main contract.
Held: The appeal succeeded. The defendant was not burdened with the obligation suggested. A mere ‘clear understanding’ was insufficient to base the argument, a document creating legal obligations was required.
The court set out three propositions for the transfer of the benefit and burden of contractual provisions: ‘(1) The benefit and burden must be conferred in or by the same transaction. In the case of benefits and burdens in relation to land it is almost inevitable that the transaction in question will be effected by one or more deeds or other documents.
(2) The receipt or enjoyment of the benefit must be relevant to the imposition of the burden in the sense that the former must be conditional on or reciprocal to the latter. Whether that requirement is satisfied is a question of construction of the deeds or other documents where the question arises in the case of land or the terms of the transaction, if not reduced to writing, in other cases. In each case it will depend on the express terms of the transaction and any implications to be derived from them.
(3) The person on whom the burden is alleged to have been imposed must have or have had the opportunity of rejecting or disclaiming the benefit, not merely the right to receive the benefit.’

Chancellor, Lewison, Scott-Baker JJ
[2010] 1 P and CR 22, [2009] 46 EG 142, [2009] NPC 126, [2010] 5 EG 114, [2009] EWCA Civ 1164
Bailii
England and Wales
Citing:
CitedHalsall v Brizell ChD 1957
Land in Liverpool was sold in building plots. The vendors retained the roads and sewers and a promenade and sea wall. A separate deed of covenant of 1851 between the vendors and the owners of the plots which had by then been sold, recited that the . .
CitedTito v Waddell (No 2); Tito v Attorney General ChD 1977
Equity applies its doctrines to the substance, not the form, of transactions. In respect of the rule against self dealing for trustees ‘But of course equity looks beneath the surface, and applies its doctrines to cases where, although in form a . .
CitedRhone and Another v Stephens HL 17-Mar-1994
A house was divided, the house being retained along with the roof over the cottage, and giving a covenant to repair the roof on behalf of the owner of the house. The cottage owner sought to enforce the covenant against a later owner of the house. . .
CitedThamesmead Town Ltd v Allotey CA 21-Jan-1998
A successor in title to the original covenantor would not pay his share of the costs of repairing and maintaining sewers he used as appurtenant to his house. The covenantee in which the relevant housing estate was vested sued for their recovery. The . .
CitedBaybut v Eccle Riggs Country Park Ltd ChD 2-Nov-2006
The purchaser of a caravan park purported to terminate the 10 year licences under which the owners of the various caravans occupied their respective pitches. The sale agreement of the caravan site had contained a covenant by the purchaser with the . .
CitedLidl UK Gmbh and Another v Davies and others CA 10-Jul-2008
The claimants had sold land to Lidl. The parties now disputed the interpretation of the development contract.
Held: Permission was given to amend the claim to assert a claim under trusts as between a party to the head contract and a party to . .
CitedIDC Group Ltd and others v Clark and others CA 25-Jun-1991
Sir Nicolas Browne-Wilkinson VC reviewed the cases about constructive trust claims summarising the result as follows: ‘That decision [Lyus] was approved by the Court of Appeal in Ashburn Anstalt v Arnold . . The Court of Appeal put what I hope is . .
CitedJenkins v Young Brothers Transport Ltd SCCO 22-Jun-2005
A solicitor had, in the name of his then firm, entered into a conditional fee agreement with a client. While the litigation proceeded he moved firms and then again. The benefit of the CFA was assigned by the former firm to the subsequent firm each . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 22 December 2021; Ref: scu.377777

Coggs v Bernard ER 234: 1738

The defendant assumpsit to take up a hogs-head of brandy in a cellar, and safely to lay it down in another cellar ; and he so negligently laid and put it down in the other cellar, that for want of care the cask was staved, and so much brandy lost. It was objected in this case, that there was no consideration to maintain the action ; for the defendant is not to have a reward, and it does not appear that he is a common carrier or porter, to be intitled to any reward; he is only to have his labour for his pains, so that this is nudum pactum.

[1738] EngR 234, (1688-1710, 1738) Holt KB 13, (1738) 90 ER 905 (B)
Commonlii
England and Wales
Citing:
See AlsoCoggs v Bernard 1703
The defendant had care of the plaintiff’s cask of brandy. He broke the cask and spilt the brandy.
Held: A bailment can exist notwithstanding that it is gratuitous, i.e. without consideration passing from the bailor to the bailee. The . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 22 December 2021; Ref: scu.385627

Federated Homes Ltd v Mill Lodge Properties Ltd: CA 29 Nov 1979

Covenents Attach to entire land not just parts

Conveyances contained restrictive covenants but they were not expressly attached to the land. The issue was whether they were merely personal.
Held: Section 78 made the covenant by the purchaser binding on his successors also. The section provides for statutory annexation of any covenant which touches and concerns the land, and the covenant is annexed to every part of the land, in the absence of a clear contrary indication.
Lord Brightman said: ‘An express assignment of the benefit of a covenant is not necessary if the benefit of the covenant is annexed to the land. In that event, the benefit will pass automatically on a conveyance of the land, without express mention, because it is annexed to the land and runs with it.’ The covenant ‘related to the land of the covenantee’, or touched and concerned the land, even if the document must show an intention to benefit identified land.’ and ‘If, as the language of section 78 implies, a covenant relating to land which is restrictive of the user thereof is enforceable at the suit of (1) a successor in title of the covenantee, (2) a person deriving title under the covenantee or under his successors in title, and (3) the owner or occupier of the land intended to be benefited by the covenant, it must, in my view, follow that the covenant runs with the land, because ex hypothesi every successor in title to the land, every derivative proprietor of the land and every other owner and occupier has a right by statute to the covenant. In other words, if the condition precedent of section 78 is satisfied; that is to say, there exists a covenant which touches and concerns the land of the covenantee–that covenant runs with the land for the benefit of his successors in title, persons deriving title under him or them and other owners and occupiers.’
and ‘I find the idea of the annexation of a covenant to the whole of the land but not to a part of it a difficult conception fully to grasp. I can understand that a covenantee may expressly or by necessary implication retain the benefit of a covenant wholly under his own control, so that the benefit will not pass unless the covenantee chooses to assign; but I would have thought, if the benefit of a covenant is, on a proper construction of a document, annexed to the land, prima facie it is annexed to every part thereof, unless the contrary clearly appears.’
Lord Justice Megaw: ‘For myself, I would regard the observations made in the passage which Brightman LJ read from Megarry and Wade, The Law of Real Property, 4th edition, page 763, as being powerful reasons, and I find great difficulty in understanding how, either as a matter of principle, or as a matter of practical good sense in relation to a legal relationship of this sort, it can be said that a covenant, which ex hypothesi has been annexed to the land as a whole, is somehow or other not annexed to the individual parts of that land.’

Lord Justice Brightman, Lord Justice Megaw
[1980] 1 WLR 594, [1980] 1 All ER 371, [1979] EWCA Civ 3
Bailii
Law of Property Act 1925 78(1)
England and Wales
Citing:
CitedRogers v Hosegood ChD 1900
The vendors were partners in Cubitt and Co, a well-known firm of builders who had laid out land in Palace Gate, Kensington in building plots suitable for large private houses. In 1869 they twice sold and conveyed plots to the Duke of Bedford subject . .
CitedShelfer v City of London Electric Lighting Company, Meux’s Brewery Co v Same CA 1895
The plaintiff sought damages and an injunction for nuisance by noise and vibration which was causing structural injury to a public house.
Held: The court set out the rules for when a court should not grant an injunction for an infringement of . .
CitedRe Union of London and Smith’s Bank Ltd’s Conveyance, Miles v Easter ChD 1933
The court considered whether a covenant which was annexed to retained land was annexed to the entire plot only, and not to any part of it.
Bennett J said: ‘In my judgment, in order that an express assignee of a covenant restricting the user of . .
CitedTophams Ltd v Earl of Sefton HL 1967
Section 79 of the Law of Property Act (relating to the burden of covenants) achieved no more than the introduction of statutory shorthand into the drafting of covenants. It does does not have the effect of causing covenants to run with the land . .
CitedDrake v Gray CA 1936
The court considered the enuring of the benefit of a restrictive covenant. Romer LJ said: ‘. . where one finds not ‘the land coloured yellow’ or ‘the estate’ or ‘the field named so and so’ or anything of that kind, but ‘the lands retained by the . .
CitedSmith and Snipes Hall Farm Ltd v River Douglas Catchment Board CA 1949
Benefit of Covenant Ran with Land
In 1938, landowners and the Catchment Board agreed that the Board would make good and maintain the banks of a stream, with the landowners contributing to the cost. The agreement was not said to be for the benefit of the landowner’s successors in . .

Cited by:
CitedCrest Nicholson Residential (South) Ltd v McAllister ChD 18-Nov-2002
A vendor/purchaser covenant was not to use the premises, ‘for any purpose other than those of or in connection with a private dwellinghouse.’ The parties requested the court to construe its meaning. The meaning had been considered before and settled . .
CitedCrest Nicholson Residential (South) Ltd v McAllister CA 1-Apr-2004
Land had been purchased which was subject to a restrictive covenant. The papers did not disclose the precise extent of the dominant land, the land which benefitted from the restriction.
Held: The land having the benefit of a covenant had to be . .
CitedRoake and others v Chadha and another QBD 1984
Land was laid out in individual lots and sold off in a standard form requiring that no building should be erected other than one private dwelling house and that plans should be submitted for approval. The defendants purchased one lot and wished to . .
CitedMohammadzadeh v Joseph and others ChD 15-Feb-2006
The parties disputed whether the defendants owned the benefit of a restrictive covenant.
Held: The covenant did touch and concern the land, and the land with the benefit of covenant. The conditions under Federated Homes were met. The covenants . .
CitedSmall v Oliver and Saunders (Developments) Ltd ChD 25-May-2006
The claimant said his property had the benefit of covenants in a building scheme so as to allow him to object to the building of an additional house on a neighbouring plot in breach of a covenant to build only one house on the plot. Most but not all . .
CitedSeymour Road (Southampton) Ltd v Williams and Others ChD 29-Jan-2010
The claimant sought a declaration that restrictive covenants imposed in 1896 affecting its land were no longer effective.
Held: The declaration was granted. Under the 1881 Act (as opposed to the 1925 Act) covenants were not automatically . .
CitedBath Rugby Ltd v Greenwood and Others CA 21-Dec-2021
This appeal concerns the question whether an area of land in Bath known as the Recreation Ground, commonly called ‘the Rec’, is still subject to a restrictive covenant imposed in a conveyance of the Rec dated 6 April 1922 (‘the 1922 conveyance’). . .

Lists of cited by and citing cases may be incomplete.

Land, Contract

Leading Case

Updated: 22 December 2021; Ref: scu.196677

JBW Group Ltd v Westminster City Council (Leave): CA 12 Mar 2010

Application for leave to appeal – granted.

Pill LJ
[2010] EWCA Civ 413
Bailii
England and Wales
Citing:
At First InstanceJBW Group Ltd v Westminster City Council QBD 3-Nov-2009
The claimants acted as certificated bailiffs collecting sums due to the defendant Council on the issue of warrants of execution. The contract was terminated, and the parties now sought a decision as to costs incurred by the claimants in respect of . .

Cited by:
LeaveJBW Group Ltd v Westminster City Council CA 12-Mar-2010
The tenant had applied to the landlord for consent to assign certain leases. The court had declared the right to exercise break clauses in certain leases as lost. The court had found the right to be lost after the assignment of the leases by the . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 21 December 2021; Ref: scu.421541

JBW Group Ltd v Westminster City Council: QBD 3 Nov 2009

The claimants acted as certificated bailiffs collecting sums due to the defendant Council on the issue of warrants of execution. The contract was terminated, and the parties now sought a decision as to costs incurred by the claimants in respect of debts not yet paid at the date of the determination of the contract.

Jack J
[2009] EWHC 2697 (QB)
Bailii
England and Wales
Cited by:
At First InstanceJBW Group Ltd v Westminster City Council (Leave) CA 12-Mar-2010
Application for leave to appeal – granted. . .
Appeal fromJBW Group Ltd v Westminster City Council CA 12-Mar-2010
The tenant had applied to the landlord for consent to assign certain leases. The court had declared the right to exercise break clauses in certain leases as lost. The court had found the right to be lost after the assignment of the leases by the . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 21 December 2021; Ref: scu.377862

Malins v Freeman: 14 Jan 1837

Where an estate is purchased at an auction under a mistake as to the lot put up for sale, the Court will not decree specific performance against the purchaser, but leave the vendor, if he has sustained any damage by the mistake of the purchaser, to his remedy at law.
A bill for specific performance was accordingly, under such circumstances, dismissed

[1837] EngR 382, (1836-1837) 2 Keen 25, (1837) 48 ER 537
Commonlii
England and Wales

Contract

Updated: 21 December 2021; Ref: scu.313499

May and Butcher Limited v The King: HL 1929

(Note) Old tentage had been sold at such prices as ‘shall be agreed from time to time’ and at such delivery periods as should be similarly agreed.
Held: There was a mere agreement to agree and no contract had ever come into existence.
Lord Dunedin said: ‘No doubt as to goods, the Sale of Goods Act, 1893, says that if the price is not mentioned and settled in the contract it is to be a reasonable price. The simple answer in this case is that the Sale of Goods Act provides for silence on the point and here there is no silence, because there is a provision that the two parties are to agree.’
Lord Buckmaster spoke of the ‘well recognized principle of contract law that an agreement between two parties to enter into an agreement in which some critical part of the contract matter is left undetermined is no contract at all’, or ‘the principle that you cannot agree to agree.’

Lord Dunedin, Lord Warrington of Clyffe, Lord Buckmaster
[1934] 2 KB 17, [1929] UKHL 2, [1929] All ER Rep 679
Bailii
Sale of Goods Act 1893
Scotland
Cited by:
CitedLeeds Rugby Ltd v Harris and Bradford Bulls Holdings Limited QBD 20-Jul-2005
The claimant sought damages from the defendants saying that the second defendant had induced a breach of contract by the first when he left to play rugby for the second defendant.
Held: The contract could not be said to be void as an agreement . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 21 December 2021; Ref: scu.229006

Armstrong v Strain: CA 1952

(Upheld)

Devlin J
[1952] 1 KB 236
England and Wales
Citing:
Appeal fromArmstrong v Strain QBD 1951
armstrong_strainQBD1951
The necessary knowledge for the tort of deceit could not be found by adding the innocent mind of a principal, who knew facts which showed what his agent said to be untrue but did not know what the agent was saying, to the innocent mind of the agent . .

Cited by:
CitedMCI Worldcom International Inc v Primus Telecommunications Inc ComC 25-Sep-2003
The claimant sought judgment, and the defendant leave to amend its defence. The question was whether the proposed defence had any reasonable prospect of success.
Held: The misrepresentation alleged was made by the claimant’s in-house . .
Appealed toArmstrong v Strain QBD 1951
armstrong_strainQBD1951
The necessary knowledge for the tort of deceit could not be found by adding the innocent mind of a principal, who knew facts which showed what his agent said to be untrue but did not know what the agent was saying, to the innocent mind of the agent . .
CitedChagos Islanders v The Attorney General, Her Majesty’s British Indian Ocean Territory Commissioner QBD 9-Oct-2003
The Chagos Islands had been a British dependent territory since 1814. The British government repatriated the islanders in the 1960s, and the Ilois now sought damages for their wrongful displacement, misfeasance, deceit, negligence and to establish a . .

Lists of cited by and citing cases may be incomplete.

Torts – Other, Contract

Updated: 21 December 2021; Ref: scu.186442

The Anemone: 1987

Owners wished to let their vessel on time charter to Afram Line Limited but were unwilling to do so without a guarantee. The negotiations were conducted by Centre Shipping on behalf of owners and Dipgrove Holdings on behalf of charterers. It was agreed at an early stage of the negotiations that there would be a guarantee. Main terms but not the details were agreed by noon on 23 December 1983. The terms of a proposed guarantee were sent by telex to Shirlstar, the proposed guarantor, by Centre, soon after 12 noon on 23 December. Later in the afternoon in the course of a telephone conversation Mr Bott of Dipgrove confirmed to Mr Sorensen of Centre that Shirlstar was willing to give a guarantee in the terms proposed.
Held: The effect of the conversation was that Mr Bott on behalf of Shirlstar offered to guarantee the obligations of charterers if the owners entered into a charterparty with the main terms that had by then been agreed by Mr Bott and Mr Sorensen. That offer was one which could be accepted by the conclusion of such a charterparty. Before that happened, it might of course have been revoked. Thereafter negotiations continued on the details, with agreement being reached shortly after midnight on 23/24 December.
The typing of an alleged guarantor’s signature on a telex was ‘in writing and signed by the parties to be charged’ for the purposes of section 4: ‘I reached a provisional view in the course of the argument that the answerback of the sender of a telex would constitute a signature, whilst that of the receiver would not since it only authenticates the document and does not convey approval of the contents. But in the event the point does not arise.’

Staughton J
[1987] 1 Lloyds Rep 546
Statute of Frauds 1677 4
Citing:
CitedEccles v Bryant and Pollock CA 1947
The Plaintiff contended that a letter written by the purchaser’s solicitor which effectively set out the terms of the agreement, enclosed the part of the contract signed by the purchaser, and asked in exchange for the counter-part signed by the . .
CitedVon Hatzfeldt-Wildensburg v Alexander ChD 26-Jul-1911
A purchaser wrote offering to purchase a house, saying acceptance was subject to her solicitor approving title, covenants, lease and form of contract.
Held: It was not a complete contract capable of enforcement: ‘It appears to be well settled . .

Cited by:
CitedGood Challenger Navegante S A v Metalexportimport SA CA 24-Nov-2003
The claimant sought to enforce an arbitration award made in 1983. Time might otherwise have expired, but the claimants relied on a fax which they said was an acknowledgement of the debt, and also upon a finding in a Romanian court which created an . .
CitedGolden Ocean Group Ltd v Salgaocar Mining Industries Pvt Ltd and Another CA 9-Mar-2012
The court was asked ‘whether a contract of guarantee is enforceable where contained not in a single document signed by the guarantor but in a series of documents duly authenticated by the signature of the guarantor. It is common in commercial . .
CitedGolden Ocean Group Ltd v Salgaocar Mining Industries Pvt Ltd and Another CA 9-Mar-2012
The court was asked ‘whether a contract of guarantee is enforceable where contained not in a single document signed by the guarantor but in a series of documents duly authenticated by the signature of the guarantor. It is common in commercial . .

Lists of cited by and citing cases may be incomplete.

Transport, Contract

Updated: 21 December 2021; Ref: scu.188228

Cranleigh Precision Engineering Ltd v Bryant: 1965

The parties drew up heads of agreement. The heads of agreement provided for the assignment by Mr Bryant of certain patents and designs in return for a royalty. They also provided that Mr Bryant and the company would enter into a service agreement on terms set out in the heads of agreement. Mr Bryant argued that the agreement was not binding because it was ‘subject to contract’, although that phrase did not actually appear in the heads of agreement.
Held: The court applied the principle in Von Hatzfeldt-Wildenstein, and decided, as a matter of construction, that the document was an immediately binding agreement.

Roskill J
[1965] 1 WLR 1293, [1966] RPC 81
England and Wales
Citing:
AppliedVon Hatzfeldt-Wildensburg v Alexander ChD 26-Jul-1911
A purchaser wrote offering to purchase a house, saying acceptance was subject to her solicitor approving title, covenants, lease and form of contract.
Held: It was not a complete contract capable of enforcement: ‘It appears to be well settled . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 21 December 2021; Ref: scu.183736

Chillingworth v Esche: CA 1923

The purchasers agreed in writing to purchase land ‘subject to a proper contract to be prepared by the vendors’ solicitors’ accepting andpound;240 ‘as deposit and in part payment of the said purchase money’. A contract was prepared by the vendor’s solicitors, approved by the purchasers’ solicitor, executed by the vendor and tendered to the purchasers for execution. At that point the purchasers declined to proceed with the transaction and claimed the return of the deposit.
Held: The signed document was conditional, and the purchasers could have return of their deposit. (per Sterndale) ‘To my mind the words ‘subject to contract’ or ‘subject to formal contract’ have by this time acquired a definite ascertained legal meaning-not quite so definite a meaning perhaps as such expressions as fob or cif in mercantile transactions, but approaching that degree of definiteness. The phrase is a perfectly familiar one in the mouths of estate agents and other persons accustomed to deal with land; and I can quite understand a solicitor saying to a client about to negotiate for the sale of his land: ‘Be sure that to protect yourself you introduce into any preliminary contract you may think of making the words ‘subject to contract’.’ I do not say that the phrase makes the contract containing it necessarily and whatever the context a conditional contract. But they are words appropriate for introducing a condition, and it would require a very strong and exceptional case for the clear prima facie meaning to be displaced.’
Pollock MR said: ‘This case . . does not involve a decision of what a deposit may be in all cases, but simply what it is in this particular case.
In Howe v Smith where the nature of a deposit was considered and the right of a purchaser to the return of it, Bowen LJ said: ‘The question as to the right of the purchaser to the return of the deposit money must, in each case, be a question of the conditions of the contract. In principle it ought to be so, because of course persons may make exactly what bargain they please as to what is to be done with the money deposited. We have to look to the documents to see what bargain was made.’ And Cotton and Fry LJJ say substantially the same thing. Therefore we have to consider what in fact was the effect of the document of July 10, 1922, not forgetting the contemporaneous documents, and to ask ourselves whether this deposit was by those documents intended to pass irrevocably to the vendor if the purchasers did not carry out the transaction. In all the circumstances of this case, I think the deposit is recoverable by the purchasers. There was no provision made in the documents which would justify the vendor in declining to return it; though if he had, by appropriate words, made provision for that in the document, such a provision could have been upheld.’

Warrington LJ, Sir Ernest Pollock MR
[1924] 1 Ch 97, [1923] All ER Rep 97, 93 LJ Ch 129, 129 LT 808, 40 TLR 23, 68 Sol Jo 80
England and Wales
Citing:
CitedHowe v Smith CA 1884
A contract for the sale of land required the purchaser to pay andpound;500 ‘as a deposit and in part payment of the purchase money’, and that if the purchaser failed to complete on time the vendor should be free to resell and recover any deficiency . .

Cited by:
CitedConfetti Records (A Firm), Fundamental Records, Andrew Alcee v Warner Music UK Ltd (Trading As East West Records) ChD 23-May-2003
An agreement was made for the assignment of the copyright in a music track, but it remained ‘subject to contract’. The assignor later sought to resile from the assignment.
Held: It is standard practice in the music licensing business for a . .
ExplainedGribbon v Lutton and Another CA 19-Dec-2001
The defendant solicitors acted in obtaining and holding a deposit on the sale of land. They issued interpleader proceedings which decided that the deposit was payable to the purchaser. The vendor then sued the solicitors in negligence. The . .
CitedSharma and Another v Simposh Ltd CA 23-Nov-2011
The parties created an oral (and therefore void) contract for a development, the claimants paid a deposit, expressed to be non-refundable, and the defendant builders completed the building work. The buyers backed out. The developer now appealed . .

Lists of cited by and citing cases may be incomplete.

Contract, Land

Updated: 21 December 2021; Ref: scu.183730

Kabab-Ji Sal (Lebanon) v Kout Food Group (Kuwait): SC 26 Oct 2021

Governing law of an arbitration agreement which provides for arbitration in Paris but which is contained in a main agreement which is expressly governed by English law and (ii) as to whether the respondent became a party to the main agreement and/or the arbitration agreement notwithstanding the presence of No Oral Modification provisions in the main contract.

Lord Hodge, Deputy President, Lord Lloyd-Jones, Lord Sales, Lord Hamblen, Lord Leggatt
[2021] UKSC 48, [2021] Bus LR 1717
Bailii, Bailii Summary, Bailii Issues and Facts
England and Wales
Citing:
Appeal fromKabab-Ji Sal (Lebanon) v Kout Food Group (Kuwait) CA 20-Jan-2020
. .

Lists of cited by and citing cases may be incomplete.

Arbitration, Contract

Updated: 21 December 2021; Ref: scu.669012

Triple Point Technology Inc v PTT Public Company Ltd: SC 16 Jul 2021

The approach to interpreting liquidated damages clauses. The liquidated damages clause here was in a familiar form, providing for liquidated damages to be paid for each day of delay by the contractor ‘from the due date for delivery up to the date [the employer] accepts such work.’ The issue was whether liquidated damages were payable under this clause in respect of work which had not been completed before the contract was terminated. Issue 2 involves the interpretation of an exception to a cap on the contractor’s liability for damages when the liability results from negligence. The question is whether ‘negligence’ in the exception means the tort of negligence or whether it includes breach of the contractual duty of skill and care. Issue 3 is whether liquidated damages are subject to a cap in the contract on the amount of recoverable damages.

Lord Hodge (Deputy President), Lady Arden, Lord Sales, Lord Leggatt, Lord Burrows
[2021] UKSC 29, [2021] AC 1148, [2021] WLR(D) 411, [2021] 3 WLR 521
Bailii, Bailii Press Summary, Bailii issues and Facts, WLRD
England and Wales

Contract, Damages

Updated: 21 December 2021; Ref: scu.666005

Business and Strategies In Europe (B and S Europe) v Commission: ECFI 26 Sep 2014

ECFI Judgment – Public service contracts – Tender procedure – Services in the short term in the exclusive interest of third countries receiving external aid Union – Rejection of candidature – Selection Criteria – Contracts divided into slices – Reference project – Obligation to state reasons – Principle of sound administration – Legitimate expectations – Principle of impartiality – Principle of

MM. A. Dittrich, P
[2014] EUECJ T-222/13
Bailii
England and Wales

Contract

Updated: 21 December 2021; Ref: scu.537053

Ministero dell’Interno v Fastweb SpA: ECJ 11 Sep 2014

ECJ Judgment – Reference for a preliminary ruling – Public procurement – Directive 89/665/EEC – Article 2D(4) – Interpretation and validity – Procedures for review of the award of public supply and public works contracts – Ineffectiveness of the contract – Exception

T. von Danwitz, P
C-19/13, [2014] EUECJ C-19/13, ECLI:EU:C:2014:2194
Bailii
Directive 89/665/EEC 2D(4)

European, Contract

Updated: 21 December 2021; Ref: scu.536556

Protectacoat Firthglow Ltd v Szilagyi: CA 20 Feb 2009

The court considered an employment contract said to be a sham.
Held: While a document which could be shown to be a sham designed to deceive others would be wholly disregarded in deciding what was the true relationship between the parties, it was not only in such a case that its contents ceased to be definitive. If the evidence established that the true relationship had been, and had been intended to be, different from what was described in the document, it was that relationship and not the document or the document alone which defined the contract. In a case involving a written contract, the tribunal would ordinarily regard the documents as the starting point and ask itself what legal rights and obligations the written agreement created. But it might then have to ask whether the parties had ever realistically intended or envisaged that its terms, particularly the essential terms (ie those central to the nature of the relationship, viz mutuality of obligation, and the obligation of personal performance of the work), would be carried out as written.
‘In a case involving a written contract, the tribunal will ordinarily regard the documents as the starting point and will ask itself what legal rights and obligations the written agreement creates. But it may then have to ask whether the parties ever realistically intended or envisaged that its terms, particularly the essential terms, would be carried out as written. By the essential terms, I mean those terms which are central to the nature of the relationship, namely mutuality of obligation: Carmichael v National Power [2000] IRLR 43 and the obligation of personal performance of the work.’

Smith LJ
[2009] EWCA Civ 98, [2009] IRLR 365, [2009] ICR 835
Bailii
England and Wales
Citing:
Appeal fromProtectacoat Firthglow Ltd v Szilagyi EAT 28-Apr-2008
EAT Jurisdictional Points:
Worker, employee or neither
Extension of time: reasonably practicable
The Employment Tribunal held a pre-hearing review in which it found that the claimant for unfair . .

Cited by:
CitedLaunahurst Ltd v Larner EAT 18-Aug-2009
EAT JURISDICTIONAL POINTS: Worker, employee or neither
For 13 years the Claimant worked installing double glazing for the Respondent. In 2004 he signed a ‘contract supply agreement’ though matters continued . .
CitedAutoclenz Ltd v Belcher and Others CA 13-Oct-2009
Car Valeters contracts misdescribed their Duties
The claimants worked cleaning cars for the appellants. They said that as workers they were entitled to holiday pay. The appellant said they were self-employed.
Held: The contract purported to give rights which were not genuine, and the . .
CitedAutoclenz Ltd v Belcher and Others SC 27-Jul-2011
Car Cleaning nil-hours Contractors were Workers
The company contracted with the claimants to work cleaning cars. The company appealed against a finding that contrary to the explicit provisions of the contracts, they were workers within the Regulations and entitled to holiday pay and associated . .

Lists of cited by and citing cases may be incomplete.

Employment, Contract

Updated: 20 December 2021; Ref: scu.301655

Nagle v Fielden: CA 1966

The applicant, a lady jockey appealed refusal by the Jockey Club to issue to her a jockey’s license based simply on the fact of her sex.
Held: Her appeal succeeded. The refusal was against public policy. Where a man’s right to work was in issue, a decision of a domestic body which affected that right could be the subject of a claim for a declaration and an injunction even where no contractual relationship could be established. Lord Denning: ‘We live in days when many trading or professional associations operate ‘closed shops’. No person can work at his trade or profession except by their permission. They can deprive him of his livelihood, When a man is wrongly rejected or ousted by one of these associations, has he no remedy? I think he may well have, even though he can show no contract. The courts have power to grant him a declaration that his rejection and ouster was invalid and an injunction requiring the association to rectify their error. He may not be able to get damages unless he can show a contract or a tort. But he may get a declaration and injunction.’ If those having the governance of a trade or profession ‘make a rule which enables them to reject his application arbitrarily or capriciously, not reasonably, that rule is bad.’

Lord Denning MR
[1966] 2 QB 633, [1966] 2 WLR 1027
England and Wales
Cited by:
CitedKoeller and Another v Coleg Elidyr (Camphill Communities Wales) Ltd CA 12-Jul-2005
The applicants occupied a house as licensees. An order for possession was made against them. The company was a charitable company set up to provide accomodation in communities for handicapped adults. The workers in the communities were not formally . .
CitedBradley v The Jockey Club CA 12-Jul-2005
The Jockey had been disqualified from riding for five years for breaches of the club’s rules. He said the punishment was disproportionate in effectively preventing him working for a living.
Held: The appeal failed, and the judge’s analysis was . .
CitedMcKeown v British Horseracing Authority QBD 12-Mar-2010
The jockey claimant challenged disciplinary proceedings brought against him by the defendant authority.
Held: The findings were upheld in part but remitted for consideration of giving the claimant opportunity to challenge certain evidence. . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 20 December 2021; Ref: scu.228477

Sotiros Shipping Inc v Sameiet; The Solholt: CA 1983

The seller had failed to deliver the vessel he had sold by the delivery date. The buyer cancelled and requested return of his deposit, also claiming damages because the vessel was worth $500,000 more on the delivery date than she had been when the contract was made. At first instance, Staughton J found that a reasonable buyer would have offered, after cancellation, to take the vessel after all and that his loss was attributable to his own unreasonable conduct in failing to make such an offer (which would have been accepted by the seller).
Held: The buyer’s appeal succeeded. Mitigation and causation are really two sides of the same coin and ‘Whether a loss is avoidable by reasonable action on the part of the plaintiff is a question of fact not law. This was decided in Payzu v Saunders.’
The onus of proof on the issue of mitigation is on the defendant: ‘A plaintiff is a under no duty to mitigate his loss, despite the habitual use by the lawyers of the phrase ‘duty to mitigate’. He is completely free to act as he judges to be in his best interests. On the other hand, a defendant is not liable for all loss suffered by the plaintiff in consequence of his so acting. A defendant is only liable for such part of the plaintiff’s loss as is properly to be regarded as caused by the defendants’ breach of duty.’
As to Strutt v Whitnell, if the House of Lords ever considered it, they might hold that the judgments confused the proposition that a party deciding whether to rescind or affirm a contract need have no regard to considerations of mitigation with the proposition that, once such a decision had been made, the principles of mitigation apply.
Questions concerning whether or not claimants have acted reasonably in order to mitigate injury and loss are questions of fact for the court.

Sir John Donaldson MR
[1983] 1 Lloyd’s Rep 605
England and Wales
Citing:
Appeal fromSotiros Shipping Inc v Sameiet: The Solholt 1981
The seller did not deliver the vessel by the contractual date for delivery. The buyer exercised his right to cancel and to recover his deposit. He also claimed damages because the vessel was worth $500,000 more on the delivery date than she had been . .
Not approvedStrutt v Whitnell CA 1975
The house sale contract provided for vacant possession on completion, notwithstanding that it was in fact occupied by a protected tenant who in the event declined to leave. The vendor offered to accept a reconveyance of the house, but that offer was . .
CitedPayzu Limited v Saunders CA 1919
The innocent plaintiff buyers had been found to have failed to mitigate their damages because they had not accepted an offer from the defendant sellers (who were in breach of contract) to supply goods on cash terms, the contract having originally . .
CitedBritish Westinghouse Electric and Manufacturing Co v Underground Electric Railways Co (London) Limited HL 1912
The plaintiffs purchased eight steam turbines from the defendants. They later proved defective, and the plaintiffs sought damages. In the meantime they purchased replacements, more effective than the original specifications. In the result the . .

Cited by:
CitedPeregrine Systems Ltd v Steria Ltd CA 14-Mar-2005
The claimant provided computer software to the defendants. The defendants appealed dismissal of their defences arguing that the system had failed.
Held: No repudiatory breach was established, and moreover Steria had elected to affirm the . .
CitedStandard Chartered Bank v Pakistan National Shipping Corporation; Seaways Maritime Limited; Oakprime International Limited; Arvind Mehra and Sgs United Kingdom Limited CA 26-Jan-2001
As part of its attempt to mitigate its loss caused by deceit perpetrated in relation to it by the defendants, the claimant bank presided over the sale of a cargo of bitumen in Vietnam. To do this, it sent one of its officers, to Vietnam on two . .
CitedSamuels and Another v Benning CA 22-May-2002
. .
CitedCopley v Lawn; Maden v Haller CA 17-Jun-2009
The parties had been involved in a road accident. The insurer for the liable party offered a car for use whilst the claimant’s car was being repaired. The claimants had rejected that offer, and now appealed against a refusal to award them the cost . .
CitedThornton v Telegraph Media Group Ltd QBD 16-Jun-2010
The claimant said that a review of her book was defamatory and a malicious falsehood. The defendant now sought summary judgment or a ruling as to the meaning of the words complained of.
Held: The application for summary judgment succeeded. The . .
CitedBorealis Ab v Geogas Trading Sa ComC 9-Nov-2010
The parties had contracted for sale and purchase of butane for processing. It was said to have been contaminated. The parties now disputed the effect on damages for breach including on causation, remoteness, mitigation and quantum.
Held: The . .

Lists of cited by and citing cases may be incomplete.

Contract, Damages

Updated: 20 December 2021; Ref: scu.223526

Scandinavian Trading Tanker Co AB v Flota Petrolera Ecuatoriana (The Scaptrade): HL 1983

The House considered giving relief from forfeiture where an owner had justifiably withdrawn his vessel in accordance with the terms of the charter.
Held: A withdrawal clause under a time charter, exercised on the ground of the charterer’s failure to make punctual payment of an instalment of hire, was not subject to the equitable right to relief against forfeiture, even though it involved the loss of a valuable charter. Such rights of withdrawal are usually exercised where the market rate of hire is substantially above the charter rate. The remedy of relief from forfeiture was unavailable in part because a Court of Equity would not grant specific performance in respect of it.
The House distinguished between merely contractual rights, and contracts concerning the transfer or creation of proprietary or possessory rights. The House warned against the wholesale importation into commercial law of equitable principles inconsistent with the certainty and speed which are essential requirements for the orderly conduct of business affairs.
An injunction restraining the ship owner from exercising his right of withdrawal of the vessel (a contractual right given to him under the charter) was to be equated with an order for specific performance.
Lord Diplock said: ‘A time charter, unless it is a charter by demise, with which your Lordships are not here concerned, transfers to the charterer no interest in or right to possession of the vessel; it is a contract for services to be rendered to the charterer by the shipowner through the use of the vessel by the shipowner’s own servants, the master and the crew, acting in accordance with such directions as to the cargoes to be loaded and the voyages to be undertaken as by the terms of the charterparty the charterer is entitled to give to them. Being a contract for services it is thus the very prototype of a contract of which before the fusion of law and equity a court would never grant specific performance: Clarke v Price (1819) 2 Wils. 157; Lumley v Wagner (1852) 1 De G.M and G. 604. In the event of failure to render the promised services, the party to whom they were to be rendered would be left to pursue such remedies in damages for breach of contract as he might have at law. But as an unbroken line of uniform authority in this House, from Tankexpress [1949] A.C. 76 to A/S Awilco of Oslo v Fulvia S.p.A. di Navigazione of Cagliari (The Chikuma) [1981] 1 WLR 314, has held, if the withdrawal clause so provides, the shipowner is entitled to withdraw the services of the vessel from the charterer if the latter fails to pay an instalment of hire in precise compliance with the provisions of the charter. So the shipowner commits no breach of contract if he does so; and the charterer has no remedy in damages against him. To grant an injunction restraining the shipowner from exercising his right of withdrawal of the vessel from the service of the charterer, though negative in form, is pregnant with an affirmative order to the shipowner to perform the contract; juristically it is indistinguishable from a decree for specific performance of a contract to render services; and in respect of that category of contracts, even in the event of breach, this is a remedy that English courts have always disclaimed any jurisdiction to grant. This is, in my view, sufficient reason in itself to compel rejection of the suggestion that the equitable principle of relief from forfeiture is juristically capable of extension so as to grant to the court a discretion to prevent a shipowner from exercising his strict contractual rights under a withdrawal clause in a time charter which is not a charter by demise.’
Lord Diplock said that his judgment was concerned only with time charters that were not by demise: ‘the reasoning in my speech has been directed exclusively to time charters that are not by demise. Identical considerations would not be applicable to bareboat charters and it would in my view be unwise for your Lordships to express any views about them.’
. . And: ‘The classic form of penalty clause is one which provides that upon breach of a primary obligation under the contract a secondary obligation shall arise on the part of the party in breach to pay to the other party a sum of money which does not represent a genuine pre-estimate of any loss likely to be sustained by him as the result of the breach of primary obligation but is substantially in excess of that sum. The classic form of relief against such a penalty clause has been to refuse to give effect to it, but to award the common law measure of damages for the breach of primary obligation instead.’

Diplock, Keith of Kinkel, Scarman, Roskill and Bridge of Harwick LL
[1983] 2 AC 694, [1983] 2 AC 694, [1983] 2 All ER 763, [1983] 3 WLR 203
England and Wales
Citing:
AffirmedScandinavian Trading Tanker Co AB v Flota Petrolera Ecuatoriana (The Scaptrade) CA 1983
Charterers of a ship sought refielf from forfeiture of the charterparty on equitable grounds.
Held: No jurisdiction existed to grant such a rlief. In a commercial agreement between commercial parties, the court had no jurisdiction to relieve a . .

Cited by:
CitedLady Navigation Inc v Lauritzencool Ab and Another CA 17-May-2005
The shipowner appealed the award against them of an injunction requiring them not to act inconsistently with a time charterparty. The company said that such a form of order was improper.
Held: The existence of the contract to do what was . .
AppliedSport International Bussum BV v Inter-Footwear Ltd HL 2-Jan-1984
A contractual licence was granted to use names and trademarks for sports shoes. An earlier action between the parties had been stayed on the terms scheduled to a Tomlin order, which provided for Inter-Footwear to pay a sum in instalments and to have . .
CitedSport Internationaal Bussum BV v Inter-Footwear Ltd CA 1984
There had been a contractual licence to use names and trademarks for sports shoes. An earlier action between the parties had been stayed on the terms scheduled to a Tomlin order, which provided for Inter-Footwear to pay andpound;105,000 in three . .
CitedCavendish Square Holding Bv v Talal El Makdessi; ParkingEye Ltd v Beavis SC 4-Nov-2015
The court reconsidered the law relating to penalty clauses in contracts. The first appeal, Cavendish Square Holding BV v Talal El Makdessi, raised the issue in relation to two clauses in a substantial commercial contract. The second appeal, . .

Lists of cited by and citing cases may be incomplete.

Transport, Damages, Contract, Equity

Updated: 20 December 2021; Ref: scu.225442

Rachmaninoff and Others v Sotheby’s and Another: QBD 1 Mar 2005

The defendant had offered for sale by auction recently discovered works of Rachmaninoff. The claimants, descendants of the composer asserted ownership through his estate. The defendants refused to identify the seller.
Held: The claim should proceed. Both the claim and defence had realistic prospects of success.

[2005] EWHC 258 (QB)
Bailii
England and Wales
Citing:
CitedGotha City v Sotheby’s and Another; Federal Republic of Germany v Same QBD 9-Sep-1998
Limitation does not run in favour of a thief. A painting stolen during the war and dealt with by those knowing its true origin remained in the ownership of the original owner however long it had been held by someone who was not a purchaser in good . .
CitedThree Rivers District Council and Others v Governor and Company of The Bank of England HL 18-May-2000
The applicants alleged misfeasance against the Bank of England in respect of the regulation of a bank.
Held: The Bank could not be sued in negligence, but the tort of misfeasance required clear evidence of misdeeds. The action was now properly . .
CitedSwain v Hillman CA 21-Oct-1999
Strike out – Realistic Not Fanciful Chance Needed
The proper test for whether an action should be struck out under the new Rules was whether it had a realistic as opposed to a fanciful prospect of success. There was no justification for further attempts to explain the meaning of what are clear . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 20 December 2021; Ref: scu.223865

Hare v Nicoll: CA 1966

In an option for the renewal of a lease, or for the purchase or re-purchase of property, the contractual right must be exercised strictly within the time limited for the purpose, otherwise it will lapse. Danckwerts LJ said: ‘The authority cited for that proposition is a very striking case, Dibbins v. Dibbins, a decision of Chitty J. In that case an option for a surviving partner to purchase a deceased partner’s share had to be exercised within three months of his death. A notice within the three months was given by solicitors on behalf of the surviving partner, but he was of unsound mind, and therefore the notice was not effective. Under an order in lunacy, a fresh notice was given, but it was too late in time, and equally ineffective. The rule really is long established, as Ranelagh (Lord) v. Melton (a decision of Kindersley V-C) and other cases show.’

Danckwerts LJ
[1966] 2 QB 130, [1966] 1 All ER 285
England and Wales
Cited by:
CitedHolwell Securities Ltd v Hughes CA 5-Nov-1973
An option was to be exercised ‘by notice in writing’ before a certain date. The solicitors’ letter doing so was addressed to the defendant at his residence and place of work, the house which was the subject of the option to purchase, was posted by . .

Lists of cited by and citing cases may be incomplete.

Landlord and Tenant, Contract

Updated: 20 December 2021; Ref: scu.223445

Mackender v Feldia AG: CA 1966

A clause provided that an insurance policy should be governed by Belgian law and that ‘any disputes arising thereunder shall be exclusively subject to Belgian jurisdiction.’ The underwriters avoided the contract for non-disclosure of material facts and submitted that the jurisdiction clause could no longer apply because there ‘is no contract and there was no contract when the Belgian proceedings were started. So the relations between the parties are no longer governed by the contract at all’ per Mr R A MacCrindle QC.
Held: The argument was that: ‘owing to the non-disclosure there was no true contract – no real consent by the underwriters – and that, on this basis, the contract itself falls down, including even the jurisdiction clause.’ That argument was rejected because there was a contract until avoidance and that the case was not like a case of ‘non est factum’ when the foreign jurisdiction clause might not apply at all. A claim for innocent misrepresentation would have also been regarded as falling within the words ‘any dispute arising thereunder’.
A collateral agreement, such as a jurisdiction clause, may be capable of taking effect even though the validity of the primary contract is in dispute, and a clause in an insurance policy submitting disputes ‘arising thereunder’ to a foreign jurisdiction was wide enough to cover the question of whether the contract could be avoided for non-disclosure.

Diplock LJ, Denning MR
[1967] 2 QB 590, [1966] 3 All ER 847
England and Wales
Cited by:
CitedHIH Casualty and General Insurance Limited and others v Chase Manhattan Bank and others HL 20-Feb-2003
The insurance company had paid claims on policies used to underwrite the production of TV films. The re-insurers resisted the claims against them by the insurers on the grounds of non-disclosure by the insured, or in the alternative damages for . .
CitedFiona Trust and Holding Corporation and others v Privalov and others CA 24-Jan-2007
The court was asked whether when contracts have been induced by bribery and have been rescinded on discovery of the bribery, that constitutes a dispute which can be determined by arbitration in the context of a common form of arbitration clause.
CitedHarbour Assurance Co (Uk) Ltd v Kansa General International Insurance Co Ltd 1993
The Court said that older (pre Heyman v Darwins Ltd) authorities about the width of arbitration clauses had to be approached with some care and that the words ‘arising from the contract’ have almost invariably been treated as ‘words of very wide . .
CitedPremium Nafta Products Ltd (20th Defendant) and others v Fili Shipping Company Ltd and others; Fiona Trust and Holding Corporation v Privalov HL 17-Oct-2007
The owners of a ship sought to rescind charters saying that they had been procured by bribery.
Held: A claim to rescind a contract by reason of bribery fell within the scope of an arbitration clause under which the parties had agreed to refer . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 20 December 2021; Ref: scu.219462

A G Securities v Vaughan; Antoniades v Villiers and Bridger: HL 10 Nov 1988

In Antoniades, the two tenants occupied an attic, living together. Each had at the same time signed identical agreements purporting to create licences. The landlord had reserved to himself the right to occupy the property and to allow others to occupy it so as to create no more than a licence.
Held: Behaviour by the parties after a tenancy areement was not relevant in construing the tenancy agreement, but can be used to see whether the document properly reflected what the parties intended. Such surrounding circumstances include ‘any relationship between the prospective occupiers, the course of negotiations and the nature and extent of the accommodation and the intended and actual mode of occupation.’ The documents were interdependent, and in fact the tenants had enjoyed exclusive occupation. The clause allowing additional occupiers was a sham. The two agreements had to be read together. The parties could not contract out of the Rent Acts, and clause 16 did not reflect the true position and that accordingly clause 16 should be struck out.
In A G Securities, four tenants of a property had signed separate documents at different times. They now claimed to have one joint tenancy rather than licence agreements as claimed by the landlord.
Held: The court will look to the substance and reality of the transaction entered into by the parties, not just the apparent form. Nevertheless, in this case the rigts and duties having been created originally as several obligations, could not become joint.
Lord Templeman said: ‘Where a landlord creates a tenancy of a flat and reserves the right to go into exclusive occupation at any time of the whole or part of the flat with or without notice, that reservation is inconsistent with the provisions of the Rent Acts and cannot be enforced without an order of the court under section 98. Where a landlord creates a tenancy of a flat and reserves the right to go into occupation of the whole or part of the flat with or without notice, jointly with the existing tenants, that reservation also is inconsistent with the provisions of the Acts. Were it otherwise every tenancy agreement would be labelled a licence and would contract out of the Rent Acts by reserving power to the landlord to share possession with the tenant at any time after the commencement of the term.
Clause 16 is a reservation to Mr Antoniades of the right to go into occupation or to nominate others to enjoy occupation of the whole of the flat jointly with Mr Villiers and Miss Bridger. Until that power is exercised Mr Villiers and Miss Bridger are jointly in exclusive occupation of the whole flat making periodical payments and they are therefore tenants. The Rent Acts prevents the exercise of a power which would destroy the tenancy of Mr Villiers and Miss Bridger and would deprive them of the exclusive occupation of the flat which they are now enjoying. Clause 16 is inconsistent with the provisions of the Rent Acts.
There is separate and alternative reason why clause 16 must be ignored. Clause 16 was not a genuine reservation to Mr Antoniades of the power to share the flat and a power to authorise other persons to share the flat. Mr Antoniades did not genuinely intend to exercise the powers save possibly to bring pressure to bear to obtain possession. Clause 16 was only intended to deprive Mr Villiers and Miss Bridger of the protection of the Rent Acts. Mr Villiers and Miss Bridger had no choice in the matter.’
Lord Bridge said: ‘Here the artificiality was in the pretence that two contemporaneous and identical agreements entered into by a man and a woman who were going to live together in a one-bedroom flat and share a double bed created rights and obligations which were several rather than joint. As to the nature of those rights and obligations, the provisions of the joint agreement purporting to retain the right in the respondent to share the occupation of the flat with the young couple himself or to introduce an indefinite number of third parties to do so could be seen, in the relevant circumstances, to be repugnant to the true purpose of the agreement. No one could have supposed that those provisions were ever intended to be acted on. They were introduced into the agreement for no other purpose than as an attempt to disguise the true character of the agreement which it was hoped would deceive the court and prevent the appellants enjoying the protection of the Rent Acts. As your Lordships all agree, the attempt fails.’

Lord Bridge of Harwich, Lord Templeman, Lord Ackner, Lord Oliver of Aylmerton, Lord Jauncey of Tullichettle
[1988] 1 EGLR 36, [1990] 1 AC 417, [1988] 3 WLR 1205, [1988] UKHL 8, [1988] 3 All ER 1058
Bailii
Rent Act 1977 1
England and Wales
Citing:
Dictum approvedSnook v London and West Riding Investments Ltd CA 1967
Sham requires common intent to create other result
The court considered a claim by a hire-purchase company for the return of a vehicle. The bailee said the agreement was a sham.
Held: The word ‘sham’ should only be used to describe an act or document where the parties have a common intention . .
Appeal fromAntoniades v Villiers and Another CA 17-Mar-1988
The court considered whether a license agreement was a sham and that a tenancy had been created. Bingham LJ said: ‘Where a written agreement is not held to be a sham, the task of the court, as with any other agreement, is to construe it and give . .
CitedCole v Harris 1945
The court was aksed whether a single room was let as a separate dwelling.
Held: Sharing of the use of a bathroom or toilet need not prevent a tenancy being protected. . .
CitedNeale v Del Soto CA 1945
A letting of two of a number of rooms in a property together with joint use with the landlord of the kitchen, bathroom, lavatory and conservatory was not a letting of the two rooms as a separate dwelling, but a sharing of the property. The letting . .
CitedCurl v Angelo CA 1948
Two rooms were let to the proprietor of an adjoining hotel as additional accommodation for the hotel. They were used mainly for guests but occasionally for the hotel tenant’s family or staff. One such claimed security of tenure.
Held: The . .
CitedAldrington Garages Ltd v Fielder 1978
Mr Fielder and Miss Maxwell together applied to take a self-contained flat. Each signed an agreement to pay andpound;54.17 per month to share the use of the flat with one other person. The couple moved into the flat and enjoyed exclusive occupation. . .
CitedHadjiloucas v Crean CA 1988
Two ladies applied to take two-roomed flat with kitchen and bathroom. Each signed an agreement to pay pounds 260 per month to share the use of the flat with one other person. They moved into the flat and enjoyed exclusive occupation. In terms, if . .
CitedSturolson v Weniz CA 1984
The plaintiffs took occupation under an agreement which purported to grant a non exclusive right of possession of the flat, and to be personal. Occupation could only be shared with persons approved in advance by L. L’s agent had said the agreement . .
CitedSomma v Hazelhurst CA 1978
A young unmarried couple H and S occupied a double bedsitting room for which they paid a weekly rent. The landlord did not provide services or attendance and the couple were not lodgers but tenants enjoying exclusive possession.
Held: The . .
CitedCrancour Ltd v Da Silvaesa and Another CA 26-Feb-1986
The plaintiff sought possession of two rooms in a house occupied by the defendants separately. The agreements stated that they were licences. The agreements excluded the occupiers between 10:30am and noon on each day. The occupiers claimed to be . .

Cited by:
CitedHomebase Ltd and Another v Allied Dunbar Assurance Plc CA 17-May-2002
The tenant held land under a lease restricting the terms of any underletting. It wanted to sublet part, but could find no tenant who would take the terms. It sought to let the property in a sub-lease which complied formally with the head-lease but . .
CitedParkins v City of Westminster CA 20-Nov-1997
The council granted what it called a licence to the applicant. He was one of their employee teachers, and they wanted to supply accomodation. They appealed refusal of possession on the basis that he had become a secure tenant under the Act. It had . .
CitedCollier v Collier CA 30-Jul-2002
Fraudulent Intent Negated Trust
The daughter claimant sought possession of business premises from her father who held them under leases. He claimed an order that the property was held in trust for him. The judge that at the time the properties were conveyed, the father had been . .
CitedBankway Properties Ltd v Penfold-Dunsford and Another CA 24-Apr-2001
A grant of an assured tenancy included a clause under which the rent would be increased from pounds 4,680, to pounds 25,000 per year. It was expected that the tenant would be reliant upon Housing Benefit to pay the rent, and that Housing Benefit . .
CitedAslan v Murphy (No 1 and 2); Duke v Wynne CA 27-Jun-1989
Occupiers claimed that they had secure tenancies. The owner said that they were mere lodgers. In Murphy (1), the landlord said that the occupier must share possession with other occupiers if required. He now said that he had retained a key and that . .
CitedUber Bv and Others v Aslam and Others CA 19-Dec-2018
Uber drivers are workers
The claimant Uber drivers sought the status of workers, allowing them to claim the associated statutory employment benefits. The company now appealed from a finding that they were workers.
Held: The appeal failed (Underhill LJ dissenting) The . .

Lists of cited by and citing cases may be incomplete.

Landlord and Tenant, Contract, Housing

Updated: 20 December 2021; Ref: scu.181340

Kwei Tek Chao v British Traders and Shippers: QBD 1954

In testing whether a buyer of goods has acted inconsistently with the rights of the seller so as to lose the right of rejection where as in this case, property in the goods has passed to the buyer, the ownership of the seller with which the buyer must not act inconsistently is the reversionary interest of the seller which remains in him arising from the contingency that the buyer may reject the goods.
Devlin J said: ‘I do not think that that claim can succeed, first, because there is no evidence that that measure of damage was contemplated by the parties. It is perfectly true that the defendants knew that the plaintiffs were merchants who had bought for re-sale, but everybody who sells to a merchant knows that he has bought for re-sale, and it does not, as I understand it, make any difference to the ordinary measure of damage where there is a market. What is contemplated is that the merchant buys for re-sale, but if the goods are not delivered to him he will go out into the market and buy similar goods and honour his contract in that way. If the market has fallen he has suffered no damage; if the market has risen the measure of damage is the difference in the market price. There are, of course, cases where that ordinary measure of damage is not applicable because something different is contemplated. If, for example, a man sells goods of special manufacture and it is known that they are to be re-sold, it must also be known that they cannot be bought in the market, being specially manufactured by the seller. In such a case the loss of profit becomes the appropriate measure of damage. Similarly, it may very well be that in the case of string contracts, if the seller knows that the merchant is not buying merely for re-sale generally, but upon a string contract where he will re-sell those specific goods, and where he could only honour his contract by delivering those goods and no others, the measure of loss of profit on re-sale is the right measure.
In my judgment there is no evidence that the defendants had any knowledge that the plaintiffs intended to re-sell those very goods; indeed, I am not at all sure that the plaintiffs did intend to re-sell those very goods. I think that the highest that the case can be put is that the plaintiffs, if they did anything at all, appropriated those goods subsequently to the contract with Nam Hua. But there is no evidence that there was any system of string contracts; or that the defendants knew anything more than that the plaintiffs were buying for re-sale generally, and no evidence to show that it could ever have been contemplated that if the goods were not delivered it would be necessary for the plaintiffs to do anything except go out into the market and buy similar goods which would have taken their place.’

Devlin J
[1954] 2 QB 459
England and Wales
Cited by:
CitedClegg v Olle Andersson (T/A Nordic Marine) CA 11-Mar-2003
Right oReject Survived Attempted Repair
The claimant agreed to purchase a yacht from the defendants with a keel to the manufacturer’s standard specifications. The keel actually installed was rather heavier. After correspondence, the claimant rejected the yacht and required the return of . .
CitedScottish and Newcastle International Limited v Othon Ghalanos Ltd HL 20-Feb-2008
The defendant challenged a decision that the English court had jurisdiction to hear a claim in contract saying that the appropriate court was in Cyprus. The cargo was taken by ship from Liverpool to Limassol. An English court would only have . .

Lists of cited by and citing cases may be incomplete.

Contract, Consumer

Updated: 20 December 2021; Ref: scu.180702

Pyrene v Scindia Navigation Co: QBD 1954

Under a classic FOB contract, a seller places the goods on board the ship, and procures a bill of lading in terms usual in the trade. The buyer nominates the shipper and bears all the expenses associated with the vessel including port charges, freight, customs duties, storage and arrivals charges. However, the parties to the contract of carriage can by express agreement depart from or vary their respective responsibilities. Devlin J said: ‘. The phrase ‘shall properly and carefully load’ may mean that the carrier shall load and that he shall do it properly and carefully: or that he shall do whatever loading he does properly and carefully. The former interpretation perhaps fits the language more closely, but the latter may be more consistent with the object of the rules. Their object as it is put, I think, correctly in Carver’s Carriage of Goods by Sea, 9th ed. (1952), p. 186, is to define not the scope of the contract service but the terms on which that service is to be performed. The extent to which the carrier has to undertake the loading of the vessel may depend not only upon different systems of law but upon the custom and practice of the port and the nature of the cargo. It is difficult to believe that the rules were intended to impose a universal rigidity in this respect, or to deny freedom of contract to the carrier. The carrier is practically bound to play some part in the loading and discharging, so that both operations are naturally included in those covered by the contract of carriage. But I see no reason why the rules should not leave the parties free to determine by their own contract the part which each has to play. On this view the whole contract of carriage is subject to the rules, but the extent to which loading and discharging are brought within the carrier’s obligations is left to the parties themselves to decide. ‘

Devlin J
[1954] 2 QB 402, [1954] 2 WLR 1005, [1954] 1 Lloyds Rep 321, [1954] 2 All ER 158
Hague-Visby Rules
England and Wales
Cited by:
CitedParsons Corporation and others v C V Scheepvaartonderneming ‘The Happy Ranger’ CA 17-May-2002
There was a contact for the carriage by sea of three reactors. The contract applied the Hage-Visby rules.
Held: The contract applied the rules as they would apply in the country of shipment if they were applied mandatorily. The contact should . .

Lists of cited by and citing cases may be incomplete.

Contract, Transport

Updated: 20 December 2021; Ref: scu.181086

Clegg v Olle Andersson (T/A Nordic Marine): CA 11 Mar 2003

Right oReject Survived Attempted Repair

The claimant agreed to purchase a yacht from the defendants with a keel to the manufacturer’s standard specifications. The keel actually installed was rather heavier. After correspondence, the claimant rejected the yacht and required the return of the the purchase price. The respondent said the exercise of a right of rejection was unreasonable, given that the manufacturer had offered to correct the defect.
Held: Though a repair had been undertaken the right to reject had not been lost. The buyer had maintained his demand for information about the defect. Whether or not a buyer has had a reasonable time to inspect the goods is only one of the questions to be answered in ascertaining whether there has been acceptance in accordance with subsection (4). Subsection (6)(a) shows that time taken merely in requesting or agreeing to repairs for carrying them out, is not to be counted. The purchasers’ failure to mitigate their loss became irrelevant when the right of rejection was used. There is no requirement that the exercise of the right of rejection should be subject to any condition of reasonableness.

Lady Justice Hale The Vice-Chancellor Lord Justice Dyson
[2003] EWCA Civ 320, Times 14-Apr-2003, Gazette 22-May-2003, [2003] 2 Lloyd’s Rep 32
Bailii
Sale of Goods Act 1979 13(1) 14(2)
England and Wales
Citing:
CitedKwei Tek Chao v British Traders and Shippers QBD 1954
In testing whether a buyer of goods has acted inconsistently with the rights of the seller so as to lose the right of rejection where as in this case, property in the goods has passed to the buyer, the ownership of the seller with which the buyer . .
CitedBernstein v Pamson Motors (Golders Green) Ltd QBD 1987
A car had been delivered to the buyer three weeks before the purported rejection. In the interval the purchaser had driven it 140 miles.
Held: The nature of the particular defect, discovered ex post facto, and the speed with which it might . .
Appeal fromClegg and Another v Andersson (Trading As Nordic Marine) QBD 21-May-2002
. .

Cited by:
CitedJ and H Ritchie Ltd v Lloyd Ltd HL 7-Mar-2007
The appellants had bought a seed drill from the respondents. It had been repossessed but sold as near new. A fault was noticed after two days use, and it was returned. The defendants repaired it without agreeing this with the appellant, and then . .

Lists of cited by and citing cases may be incomplete.

Contract, Consumer

Updated: 20 December 2021; Ref: scu.179774

Nesbit Law Group Llp v Acasta European Insurance Company Ltd: CA 21 Feb 2018

The Court considered the proper construction of an exception or exclusion clause contained in a series of Financial Guarantee Indemnity policies, and if needed, whether Acasta should be granted permission to amend its Part 20 defence to plead that the defendant, Part 20 claimant and respondent had acted in breach of the terms

Sir Geoffrey Vos, Chancellor of the High Court
[2018] EWCA Civ 268
Bailii
England and Wales

Contract

Updated: 20 December 2021; Ref: scu.605312

Radford and Another v Frade and Others: QBD 28 Jul 2014

Sir David Eady
[2014] EWHC 2602 (QB)
Bailii
England and Wales
Cited by:
See AlsoRadford and Another v Frade and Others QBD 8-Jul-2016
The court was asked as to the terms on which solicitors and Counsel were retained to act for the defendants. The appeals did not raise any issues concerning costs practice, and were by way of review of the Costs Judge’s rulings, and not by way of . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 18 December 2021; Ref: scu.535503

Viscous Global Investment Ltd v Palladium Navigation Corporation ‘Quest’: ComC 30 Jul 2014

The Court was asked whether an arbitration clause in a P and I Club Letter of Undertaking was intended to replace the arbitration clauses incorporated into four bills of lading issued by the defendant shipowners for the carriage of a cargo of bagged rice.

Males J
[2014] EWHC 2654 (Comm)
Bailii
Arbitration Act 1996 32

Arbitration, Contract

Updated: 18 December 2021; Ref: scu.535486

Molton v Camroux: CExC 1848

A person of unsound mind bought an annuity from a life assurance society. The society granted the annuities in the ordinary course of its business. The contracts were challenged.
Held: The court referred to the argument that a plea of insanity would not prevail unless the other contracting party knew of it, and said: ‘We are not disposed to lay down so general a proposition, as that all executed contracts bona. fide entered into must be taken as valid, though one of the parties be of unsound mind; we think, however, that we may safely conclude, that when a person, apparently of sound mind, and not known to be otherwise, enters into a contract for the purchase of property which is fair and bona fide, and which is executed and completed, and the property, the subject-matter of the contract, has been paid for and fully enjoyed, and cannot be restored so as to put the parties in statu quo, such contract cannot afterwards be set aside, either by the alleged lunatic, or those who represent him.’

(1848) 2 Exch 487
England and Wales
Cited by:
Appeal fromMolton v Camroux CEC 2-Jan-1848
The buyer of annuities from a company was of unsound mind. The company had acted in its normal course of business.
Held: The court asked ‘whether the mere fact of unsoundness of mind, which was not apparent, is sufficient to vacate a fair . .
CitedArcher v Cutler 1980
(New Zealand) The purchaser of land sought specific performance of the contract. The vendor and purchaser had been neighbours. The neighbour needed part of the vendor’s land for access.
Held: A contract made by a person of insufficient mental . .
CitedHart v O’Connor PC 22-Apr-1985
Effect of insanity on making of contract
(New Zealand) The parties disputed the effect in law of an agreement for the sale of land. The transferor had proved not to be of sound mind.
Held: The validity of a contract entered into by a lunatic who is ostensibly sane is to be judged by . .
CitedMasterman-Lister v Brutton and Co, Jewell and Home Counties Dairies (No 1) CA 19-Dec-2002
Capacity for Litigation
The claimant appealed against dismissal of his claims. He had earlier settled a claim for damages, but now sought to re-open it, and to claim in negligence against his former solicitors, saying that he had not had sufficient mental capacity at the . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 18 December 2021; Ref: scu.252446

Smallman v Smallman: CA 1972

An order was sought under the 1882 Act to decide the shares in which the family home was to be held. An overall agreement had been negotiated in correspondence between solicitors that W should have a half share in the proceeds of sale of the property and that H would pay the children’s school fees and maintenance but this was conditional upon W providing evidence on which H could divorce her and on ‘the approval of the court.’ W gave the confession but H then sought to resile from the agreement claiming that it was not binding until it had been approved by the court. W proceeded under section 17 and the Registrar held there was a binding agreement but that before the proceeds could be distributed the court must approve it.
Held: Lord Denning MR said: ‘In my opinion, if the parties have reached an agreement on all essential matters, then the clause ‘subject to the approval of the court’ does not mean there is no agreement at all. There is an agreement, but the operation of it is suspended until the court approves it. It is the duty of one party or the other to bring the agreement before the court for approval. If the court approves, it is binding on the parties. If the court does not approve, it is not binding. But, pending the application to the court, it remains a binding agreement which neither party can disavow. Orr L.J. has drawn my attention to a useful analogy. Many contracts for the sale of goods are made subject to an export or import licence being obtained. Such a condition does not mean that there is no contract at all. It is the duty of the seller, or the buyer, as the case may be, to take reasonable steps to obtain a licence. If he applies for a licence and gets it, the contract operates. If he takes all reasonable steps to obtain it, and it is refused, he is released from his obligations. If he fails to apply for it or to do what is reasonable to obtain it, he is in breach and liable to damages.’

Lord Denning MR
[1972] Fam 25
Married Women’s Property Act 1882 17
England and Wales
Cited by:
CitedSoulsbury v Soulsbury CA 10-Oct-2007
The claimant was the first wife of the deceased. She said that the deceased had promised her a substantial cash sum in his will in return for not pursuing him for arrears of maintenance. The will made no such provision, and she sought payment from . .
CitedGold Group Properties Ltd v BDW Trading Ltd TCC 3-Mar-2010
The parties had contracted for the construction of an estate of houses and flats to be followed by the interim purchase by the defendants. The defendants argued that the slump in land prices frustrated the contract and that they should not be called . .
CitedWarwick (Formerly Yarwood) v Trustee In Bankruptcy of Clive Graham Yarwood ChD 13-Sep-2010
The trustee sought to have set aside as an unlawful preference, the payment of 75% of the proceeds of sale of the former matrimonial home to the bankrupt’s wife, saying that the payment had been made after the presentation of the petition. The . .

Lists of cited by and citing cases may be incomplete.

Family, Contract

Updated: 18 December 2021; Ref: scu.259832

Archer v Cutler: 1980

(New Zealand) The purchaser of land sought specific performance of the contract. The vendor and purchaser had been neighbours. The neighbour needed part of the vendor’s land for access.
Held: A contract made by a person of insufficient mental capacity was voidable at his option not only if the other party knew of or ought to have appreciated his unsoundness of mind, but also if the contract ‘was unfair to the person of unsound mind’. There were no considerations of policy or principle precluding the court from holding that a contract entered into by a person of unsound mind is voidable at his option if it is proved either that the other party knew of his unsoundness of mind or, whether or not he had that knowledge, the bargain was unfair. The court considered the idea of an unfair cotract in English law: English law on the subject is ill-defined. The case of Imperial Loan Company v. Stone [ 1892] 1 Q.B. 599 widely accepted as being a statement of the law on avoidance of contracts made with persons of unsound mind would, save in the judgment of Lopes LJ, seem to regard unfairness of the contract as being of no moment. Proof of unsoundness of mind and the other party’s knowledge of that unsoundness alone will avoid the contract. But the passage cited from the judgment of Lopes LJ. and the dicta of Pollock CB. in Molton v. Camroux (1848) 2 Exch 487 of Patteson J. on appeal in the same case, of Sir Ernest Pollock MR. in York Glass Company v. Jubb [1924] 131 L.T. Rep. 559 and of Sargant LJ. in the same case would suggest that proof of unfairness of a bargain entered into by a person of unsound mind, even though that unsoundness be not known to the other party, will suffice to avoid it.’ and ‘I find nothing in policy or principle to prevent me from holding that a contract entered into by a person of unsound mind is voidable at his option if it is proved either that the other party knew of his unsoundness of mind or, whether or not he had that knowledge, the contract was unfair to the person of unsound mind.’

[1980] 1 NZLR 386
Citing:
CitedMolton v Camroux CEC 2-Jan-1848
The buyer of annuities from a company was of unsound mind. The company had acted in its normal course of business.
Held: The court asked ‘whether the mere fact of unsoundness of mind, which was not apparent, is sufficient to vacate a fair . .
CitedMolton v Camroux CExC 1848
A person of unsound mind bought an annuity from a life assurance society. The society granted the annuities in the ordinary course of its business. The contracts were challenged.
Held: The court referred to the argument that a plea of insanity . .
CitedEarl of Aylesford v Morris 1873
One party to a contract knew of the other’s insanity.
Held: The contract of a lunatic is voidable not void. ‘Fraud’ in equity does not mean, and nor is it confined to, deceit; ‘it means an unconscientious use of power arising out of the . .
CitedImperial Loan Co v Stone CA 1892
Contract without Capacity – Voidable not Void
A person of unsound mind was sued on a promissory note. He had signed it as surety. The jury found that he was insane when he signed the note but there was no finding as to the creditor’s knowledge of such insanity. The judge entered a verdict . .
CitedMcLaughlin v Daily Telegraph Newspaper Co. Ltd 15-Jul-1904
(High Court of Australia) The court considered the law on the effect of mental incapacity on a contract in the two cases Imperial Loan, and Molton v Camroux: ‘The principle of the decision seems, however, to be the same in both cases, which, in our . .
CitedYork Glass Co Ltd v Jubb 1924
The defendant denied liability under contract, after the vendor brought an action against against the committee of his estate as a person of unsound mind. He said that the fact that he was of unsound mind was known to vendor, and later that the . .
CitedYork Glass Co Ltd v Jubb CA 1925
The vendor sought to enforce a contract. The court had rejected the defendant’s plea first that the vendor knew of his incapacity, and that therefore the contract was void, and that second, the contract should not be enforced in equity because of . .
CitedHardman v Falk 1955
Canada – ‘The contract of a lunatic is voidable not void: see York Glass Co. v. Jubb, Courts of equity will not interfere if a contract with a lunatic is made in good faith without any knowledge of the incapacity of the lunatic and no advantage is . .

Cited by:
CitedHart v O’Connor PC 22-Apr-1985
Effect of insanity on making of contract
(New Zealand) The parties disputed the effect in law of an agreement for the sale of land. The transferor had proved not to be of sound mind.
Held: The validity of a contract entered into by a lunatic who is ostensibly sane is to be judged by . .

Lists of cited by and citing cases may be incomplete.

Commonwealth, Contract

Updated: 18 December 2021; Ref: scu.252445

Re Lyne-Stephens and Scott-Miller’s Contract: CA 1920

A vendor of a house was entitled to retain the benefits of payments from a tenant made between contract and completion, because the vendor had sold the house but not yet also the benefit of the lease.

[1920] 1 Ch 472
England and Wales
Cited by:
CitedEnglewood Properties Limited v Patel and Another ChD 16-Feb-2005
The claimant was a property developer, which sought to sell a row of shops at auction. One lot was a Woolworths store, where the company owned both freehold and leasehold interests, with Woolworths occupying an underlease, which the claimant had . .

Lists of cited by and citing cases may be incomplete.

Contract, Land, Landlord and Tenant

Updated: 18 December 2021; Ref: scu.223743

Newgate Stud Company, Newgate Stud Farm Llc v Penfold, Penfold Bloodstock Limited: ChD 21 Dec 2004

The claimants sought damages from the defendant. He had been employed to manage their horse-racing activities, and it was alleged that he had made secret profits. The defendant denied any dishonesty, saying all matters were known to the deceased principal of the claimants.
Held: The defendant had withheld disclosure of his possible personal interests in some transactions. However, the relationship was not one which gave rise to such a conflict as to impose on Mr Penfold the legal onus of demonstrating that it was a fair dealing.

The Hon Mr Justice Richards
[2004] EWHC 2993 (Ch)
Bailii
England and Wales
Citing:
CitedEx parte Bennett 1805
(Year) The rule against self-dealing applies even if the fiduciary duty acts in the purchase only as an agent for others. . .
CitedYork Buildings Co v Mackenzie SCS 8-Mar-1793
Purchase by Common Agent at Auction Voidable
The defendant was the ‘common agent’ for the sale of the assets of an insolvent partnership and purchased some of the assets at a judicial auction.
Held: The purchase was voidable, even though it was made at a sale by auction.
Who bears . .
CitedMothew (T/a Stapley and Co) v Bristol and West Building Society CA 24-Jul-1996
The solicitor, acting in a land purchase transaction for his lay client and the plaintiff, had unwittingly misled the claimant by telling the claimant that the purchasers were providing the balance of the purchase price themselves without recourse . .
CitedAberdeen Railway Co v Blaikie Brothers HL 1854
The plaintiff needed a large quantity of iron chairs (rail sockets) and contracted for their supply over an 18-month period with Blaikie Bros a partnership. Thomas Blaikie was the managing partner of Blaikie Bros and a director and the chairman of . .
CitedEx parte Moore 1881
The rule that a company director may not have an interest in a contract with the company applies even if if he is only acting as an agent for another. . .
CitedTransvaal Lands Co v New Belgium (Transvaal) Land and Development Co 1914
A director has a duty to account for any secret profit if he has an undisclosed and unapproved conflict of interest. The rule against self dealing applies to cases where the fiduciary has conflicting duties to each of the contracting parties. . .
CitedEx parte Forder CA 1881
A sale of part of the property of the bankrupt was made by a trustee in bankruptcy to two buyers, one of whom was the trustee’s under-age son. The contract was not binding on the son for his minority, and the sale was also at an undervalue.
CitedDEG-Deutsche Investitions und Entwicklungsgesellschaft mbH v Koshy and Other (No 3); Gwembe Valley Development Co Ltd (in receivership) v Same (No 3) CA 28-Jul-2003
The company sought to recover damages from a director who had acted dishonestly, by concealing a financial interest in a different company which had made loans to the claimant company. He replied that the claim was out of time. At first instance the . .
CitedFarrar v Farrars Ltd CA 1888
The mortgagor of a quarry defaulted, and the mortgagees took possession. They were unable to sell the quarry, but formed a company which bought the quarry at a proper value. The mortgagor sought to set aside the sale.
Held: A mortgagee in . .
CitedBray v Ford HL 1896
An appellate court’s power to order a new trial is conditional on ‘some substantial wrong or miscarriage’ being established.
Lord Hershell said: ‘It is an inflexible rule of the court of equity that a person in a fiduciary position, such as . .
CitedLiles v Terry 1895
The court considered the situation of a gift by a client to her solicitor’s wife. . .
CitedDeg-Deutsche Investitions Und Entwicklungsgesellshaft Mbh v Koshy and Others CA 20-Feb-2001
The effect of revocation of a party’s emergency civil legal aid certificate was that he was to be deemed never to have been an assisted person. Accordingly where two costs orders had been made in interlocutory proceedings, and the defendant had been . .
CitedJJ Harrison (Properties) Ltd v Harrison CA 11-Oct-2001
A director had bought land belonging to the company, without disclosing its development potential.
Held: He had acquired the property as a constructive trustee for the company, and was accordingly accountable for it. . .
CitedBurrell v Burrell’s Trustees SCS 1915
The Court of Session considered the applicability of the rule against self dealing as it applied to the wives of trustees. The wives in question were wealthy members of the Burrell shipping family who in each case were ‘capable business women . .
CitedKak Loui Chan v Zacharia 1984
(High Court of Australia) The fundamental rule that obliged fiduciaries to account for personal benefit or gain had two separate themes: ‘The variations between more precise formulations of the principle governing the liability to account are . .
CitedTito v Waddell (No 2); Tito v Attorney General ChD 1977
Equity applies its doctrines to the substance, not the form, of transactions. In respect of the rule against self dealing for trustees ‘But of course equity looks beneath the surface, and applies its doctrines to cases where, although in form a . .
CitedIn re Douglas 1928
(New South Wales) The court considered the application of the rule against self dealing as it applied to trustees’ wives: ‘the Court of Equity would presume that the contract was for the benefit of the trustee, and evidence would be required to . .
CitedTanti v Carlson 1948
(Victoria – Australia) The court considered the application of the rule against self dealing for trustees as it applied to wives: ‘The matrimonial relationship then becomes merely a ground of suspicion, and it becomes necessary to consider whether . .
CitedWilliams v Fanshaw Porter and Hazelhurst CA 18-Feb-2004
The claimant alleged that her solicitors had concealed from her the fact that they had entered a consent order which dismissed her claim for medical negligence.
Held: The solicitor had failed to inform the client that her original claim . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 18 December 2021; Ref: scu.220714

Hart v O’Connor: PC 22 Apr 1985

Effect of insanity on making of contract

(New Zealand) The parties disputed the effect in law of an agreement for the sale of land. The transferor had proved not to be of sound mind.
Held: The validity of a contract entered into by a lunatic who is ostensibly sane is to be judged by the same standards as a contract by a person of sound mind, and is not voidable by the lunatic or his representatives by reason of ‘unfairness’ unless such unfairness amounts to equitable fraud which would have enabled the complaining party to avoid the contract even if he had been sane.
Lord Brightman: ‘In the opinion of their Lordships it is perfectly plain that historically a court of equity did not restrain a suit at law on the ground of ‘unfairness’ unless the conscience of the plaintiff was in some way affected. An unconscionable bargain in this context would be a bargain of an improvident character made by a poor or ignorant person acting without independent advice which cannot be shown to be a fair and reasonable transaction. ‘Fraud’ in its equitable context does not mean, or is not confined to, deceit; ‘it means an unconscientious use of power arising out of the circumstances and conditions’ of the contracting parties; Earl of Aylesford v Morris (1873) L.R. 8 Ch. App. 484, 491. It is victimisation, which can consist either of the active extortion of a benefit or the passive acceptance of a benefit in unconscionable circumstances.’
To accept the proposition enunciated in Archer v. Cutler that a contract with a person ostensibly sane but actually of unsound mind can be set aside because it is ‘unfair’ to the person of unsound mind in the sense of contractual imbalance, is unsupported by authority, is illogical.

Lord Brightman, Lord Scarman, Lord Bridge of Harwich, Sir Denys Buckley
[1985] 1 AC 1004, [1985] UKPC 1
England and Wales
Citing:
CitedMolton v Camroux CEC 2-Jan-1848
The buyer of annuities from a company was of unsound mind. The company had acted in its normal course of business.
Held: The court asked ‘whether the mere fact of unsoundness of mind, which was not apparent, is sufficient to vacate a fair . .
CitedMolton v Camroux CExC 1848
A person of unsound mind bought an annuity from a life assurance society. The society granted the annuities in the ordinary course of its business. The contracts were challenged.
Held: The court referred to the argument that a plea of insanity . .
CitedArcher v Cutler 1980
(New Zealand) The purchaser of land sought specific performance of the contract. The vendor and purchaser had been neighbours. The neighbour needed part of the vendor’s land for access.
Held: A contract made by a person of insufficient mental . .
CitedEarl of Aylesford v Morris 1873
One party to a contract knew of the other’s insanity.
Held: The contract of a lunatic is voidable not void. ‘Fraud’ in equity does not mean, and nor is it confined to, deceit; ‘it means an unconscientious use of power arising out of the . .
CitedImperial Loan Co v Stone CA 1892
Contract without Capacity – Voidable not Void
A person of unsound mind was sued on a promissory note. He had signed it as surety. The jury found that he was insane when he signed the note but there was no finding as to the creditor’s knowledge of such insanity. The judge entered a verdict . .
CitedMcLaughlin v Daily Telegraph Newspaper Co. Ltd 15-Jul-1904
(High Court of Australia) The court considered the law on the effect of mental incapacity on a contract in the two cases Imperial Loan, and Molton v Camroux: ‘The principle of the decision seems, however, to be the same in both cases, which, in our . .
CitedYork Glass Co Ltd v Jubb 1924
The defendant denied liability under contract, after the vendor brought an action against against the committee of his estate as a person of unsound mind. He said that the fact that he was of unsound mind was known to vendor, and later that the . .
CitedYork Glass Co Ltd v Jubb CA 1925
The vendor sought to enforce a contract. The court had rejected the defendant’s plea first that the vendor knew of his incapacity, and that therefore the contract was void, and that second, the contract should not be enforced in equity because of . .
CitedHardman v Falk 1955
Canada – ‘The contract of a lunatic is voidable not void: see York Glass Co. v. Jubb, Courts of equity will not interfere if a contract with a lunatic is made in good faith without any knowledge of the incapacity of the lunatic and no advantage is . .
CitedTremills v Benton 1892
A lunatic who appeared to be sane, entered into a contract. His representatives sought to set aside deeds of gift by the lunatic to the defendants. The administrator sought to set aside the deeds on the ground that their execution was obtained by . .

Cited by:
CitedPortman Building Society v Dusangh and Others CA 19-Apr-2000
The defendant sought to set aside an order for possession under a mortgage.
Held: Where a case was strong enough on its face in terms of conduct and terms, unconscionable conduct could be inferred if there was no explanation offered to . .
CitedPortman Building Society v Dusangh and Others CA 19-Apr-2000
The defendant sought to set aside an order for possession under a mortgage.
Held: Where a case was strong enough on its face in terms of conduct and terms, unconscionable conduct could be inferred if there was no explanation offered to . .
CitedMasterman-Lister v Brutton and Co, Jewell and Home Counties Dairies (No 1) CA 19-Dec-2002
Capacity for Litigation
The claimant appealed against dismissal of his claims. He had earlier settled a claim for damages, but now sought to re-open it, and to claim in negligence against his former solicitors, saying that he had not had sufficient mental capacity at the . .

Lists of cited by and citing cases may be incomplete.

Contract, Commonwealth, Health

Updated: 18 December 2021; Ref: scu.186684

Moore v Garwood: CEC 1849

The plaintiff sued to recover a deposit which he had paid in 1845, at the height of the great Victorian railway boom, for shares in a proposed railway company. The scheme was afterwards abandoned and the company never incorporated. Whether he was entitled to his money back depended partly upon the terms of the prospectus and some letters and partly upon what had been said at a meeting of the promoters and subscribers when it first appeared that the formation of the company was likely to be delayed. The court directed the jury that: ‘the nature of the contract into which the parties had entered was rather a question of fact than of law, because it did not consist of one distinct contract between the parties, but of a series of acts and things done, from which the jury were to determine what was the real intention and meaning of the parties when they entered into the mutual relation in which they stood.’
Held: . The main point in the case was: ‘whether it was a question of law for the judge, – whether he ought to have taken upon himself to say what the contract was; or, on the other hand, whether that was a question for the jury. Now there was a good deal of evidence, independent of these letters and of other documents. There was the conduct of the parties, which was relied upon, and which appeared from the statements of the witnesses in the progress of the trial. We therefore think that, looking at all the circumstances of the case, the Lord Chief Baron could hardly have put the case in better terms to the jury. . . . If the contract had depended solely upon the written documents, the [contrary] argument might have prevailed; but as it does not, we think the question was properly submitted to the jury.’

Patteson J
(1849) 4 Ex 681
England and Wales
Cited by:
CitedMontgomery v Johnson Underwood Ltd CA 9-Mar-2001
A worker who had strictly been employed by an agency but on a long term placement at a customer, claimed to have been unfairly dismissed by the customer when that placement ended.
Held: To see whether she was an employee the tribunal should . .
CitedCarmichael and Another v National Power Plc HL 24-Jun-1999
Tour guides were engaged to act ‘on a casual as required basis’. The guides later claimed to be employees and therefore entitled by statute to a written statement of their terms of employment. Their case was that an exchange of correspondence . .
CitedCarmichael and Another v National Power Plc HL 24-Jun-1999
Tour guides were engaged to act ‘on a casual as required basis’. The guides later claimed to be employees and therefore entitled by statute to a written statement of their terms of employment. Their case was that an exchange of correspondence . .

Lists of cited by and citing cases may be incomplete.

Contract

Updated: 18 December 2021; Ref: scu.194301

Katherine Stevenson, and Mr James Gillon, Advocate, Her Husband v Gilbert, Mary, and Eupham Fife, Children of Gilbert Fife Deceased, Late One of The Baillies of Edinburgh: HL 20 Feb 1719

Heritable and moveable – A bond taken to a man and his wife in life-rent, and to their daughter in fee, and failing her by decease to the husband, his heirs, executors, or assignees; found to be moveable, that being but one substitution.
Tutor and Pupil – A tutor having taken a heritable bond, in corroboration of a personal one payable to the pupil and her issue, whom failing to three aunts, her nearest in kin nominatim; it is found that he acted warrantably.
Succession – The three aunts having neither confirmed nor served themselves heirs, but one or them, who survived, being according to the tenor of the said heritable bond entitled thereto, assigned the same; in a question between the assignees and the heir, who was then also nearest in kin or the deceased pupil, the assignation is supported.

[1719] UKHL Robertson – 216, (1719) Robertson 216
Bailii
Scotland

Contract

Updated: 18 December 2021; Ref: scu.553530