Contract Cases Contract Cases 1. Gibson v Manchester City Council Court of Appeal Decision [1978] 1 WLR 520 - Lord Denning M.R. , Ormrod and Geoffrey Lane L.JJ House of Lords Decision [1979] 1 All ER 972 - Lord Diplock, Lord Edmund-Davies, Lord Fraser of Tullybelton, Lord Russel of Killowen and Lord Keith of Kinkel Claimant was a tenant of a council house who applied for details of the house. In February 1971, he received a letter stating the council "may be prepared to sell [him] the house" with details of the mortgage. It required the claimant to make a formal application using an enclosed form. In March the claimant returned the completed form to the defendant. The defendant then refused to sell the house under the new government party as Labour's council policy was that council houses would not be sold unless already in a legally binding contract. Claimant claimed under a breach of contract. Was successful in Court of Appeal to which the defendant appealed in House of Lords. The House of Lords strongly reasserted that agreements only exists when there is a clear offer mirrored by a clear acceptance. 1. Storer v Manchester City Council [1974] 3 All ER 824 - Lord Denning M.R, Stephenson and Lawton L.JJ. The defendant (city council) refused to proceed with the sale of a house as it was under terms depicted by its predecessors. The letter sent originally by the council stating the offer of the selling of the house also contained an "agreement for sale" that Storer was to sign if he wanted to accept and enter the contract. He did so but the council had changed their policy before completion. Council appealed Storer's order for specific performance. Court held that the contract was complete. This case outlines that an offer is an expression of willingness to contract on specified terms- with the intention that it is to be binding once accepted. 1. Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd [1953] 1 QB 401 - Somervell, Birkett and Romer L.JJ Goods where displayed in a shop and it is intended that customers when browsing shelves choose what they want. The contract is not completed until the customer has shown the shopkeeper (or employee) and they have then accepts the offer. Under the Pharmacy and Poisons Act 1933 s.18 (1)(a)(iii), it is stated that the sale of any poisons listed in Part 1 of the Poisons list will only be lawful if the sale is confirmed by a registered pharmacist. The question was if having
these 'poisons' on the shelves was in accordance of the above act. It was held that the sale could not be completed until the customers offer to buy was accepted by a registered pharmacist at the checkout. This case determines that goods on a shelf is an invitation to treat- not an offer. The offer is made when a customer takes the good to the till and makes an offer to purchase.