Trego v Hunt: HL 1896

The court defined the meaning of the goodwill of a business: ‘What ‘goodwill’ means must depend on the character and nature of the business to which it is attached. Generally speaking, it means much more than what Lord Eldon took it to mean in the particular case actually before him in Cruttwell v Lye where he says: ‘the goodwill which has been the subject of sale is nothing more than the probability that the old customers will resort to the old place.’ Often it happens that the goodwill is the very sap and life of the business, without which the business would yield little or no fruit. It is the whole advantage, whatever it may be, of the reputation and connection of the firm, which may have been built up by years of honest work or gained by lavish expenditure of money.’
Lord Herschell and Lord Macnaghten
[1896] AC 7
England and Wales
Cited by:

  • Cited – Lonrho Plc and Others v Fayed and Others (No 5) CA 27-Jul-1993
    Defamatory statements causing pecuniary loss may give rise to an action in tort only. The boundaries set by the tort of defamation are not to be side-stepped by allowing a claim in contract that would not succeed in defamation. A claimant cannot, by . .
    Times 27-Jul-93, [1993] 1 WLR 1489 (abbreviated), [1994] 1 All ER 188
  • Cited – Collins Stewart Ltd and Another v The Financial Times Ltd QBD 20-Oct-2004
    The claimants sought damages for defamation. The claimed that the article had caused very substantial losses (andpound;230 million) to them by affecting their market capitalisation value. The defendant sought to strike out that part of the claim. . .
    [2004] EWHC 2337 (QB), Times 26-Oct-04, [2005] EMLR 64
  • Cited – Eyestorm Ltd v Hoptonacre Homes Ltd CA 19-Dec-2007
    The appellant had agreed to take leases on a development of the defendant, hoping to sell the apartments on at a profit. After difficulties, the appellant refused to complete, and the defendant forfeited the deposits.
    Held: Eyestorm’s appeal . .
    [2007] EWCA Civ 1366

These lists may be incomplete.
Updated: 02 December 2020; Ref: scu.220033