A, a company of wholesale tobacco manufacturers, issued a circular to retail dealers offering them a share in a bonus on condition of their signing an agreement, inter alia, not to deal with B Limited. B Limited, in response, issued a circular offering to customers buying direct from them a share in a bonus distribution of ‘our entire net profits and two hundred thousand pounds per year for the next four years.’ The offer was accepted by C and D in a letter recapitulating the terms of the offer and stating that in consideration of it they agreed not to sign any agreement with A or any agreement with any company which might prevent them dealing with B Limited. Before the four years expired B Limited sold their business to A.
Held that B Limited, having put an end to an agreement which was to continue for four years, were liable in damages to C and D for breach of contract to the extent of the bonus which the latter would have received had B Limited continued their business.
Judges:
Lord Chancellor (Halsbury), Lords Macnaghten, James of Hereford, and Lindley
Citations:
[1905] UKHL 857, 42 SLR 857
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Ogdens Ltd v Nelson KBD 30-Jun-1903
Lord Alverstone CJ said: ‘It is, I think, clearly established as a general proposition that where two persons have entered into a contract, the performance of which on one or both sides is to extend over a period of time, each contracting party is . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 04 October 2022; Ref: scu.621173
