acca f4 cases summary

7/30/2019 ACCA F4 Cases Summary

1/8

ACCA F4

A selection of popular cases

CONTRACT

Offer and acceptance

Case Reminder Point of law

Partridge v Crittenden Advert selling wild birds Advert is an ITT not an offer

Carlill v Carbolic Smoke

Ball Co

Newspaper ad Use smoke ball,

catch flu, get 100

Advert may be on offer to the

world (rarely)

Fisher v Bell Flick knife in shop window Shop display an ITT not an offer.

Pharmaceutical Society

of GB v Boots

Medicines on shop shelves Display is an ITT. Point of sale is

at counter

Harvey v Facey Lowest price for Bumper Hall Pen

900

Supply of information re selling

price is not an offer

Harris v Nickerson Auction cancelled sued for

expenses

Advert re auction was ITT to an

offer hence no contract

Errington v Errington Father bought house for couple.

Promised to transfer if they

paid mortgage. Widow

refused

Unilateral offer could not be

revoked while

consideration was

executory

Hyde v Wrench Sale of farm buyer tried to get

price reduction

Counter offer revokes original offer

Felthouse v Bindley Trying to buy a horse. Assume its

mine if I dont hear from

you

Silence cannot be acceptance

Entores v Miles Far

Eastern

Acceptance faxed from Amsterdam

to London

Valid when received and read in

London

Byrne v Van Tienhoven Acceptance and revocation letters

crossing in post

Revocation of offer only effective

when received and read.

Acceptance valid when

posted.


2/8

Consideration


Re McArdle Tenant decorating house Past consideration is no good

Collins v Godefroy Witness promised money to give

evidence already

subpoenad

No consideration promise was

already legal obligation

Glasbrook Brothers v

Glamorgan CC

Police requested to subdue

picketing strikers

Police had done more than normal

obligation consideration

was supplied

Stilk v Myrick Sailors mutinied others offered a

rise to stay

No consideration rise was not

enforceable

Hartley v Ponsonby More sailors mutinied others

offered a rise to stay

Extra duties were consideration

rise was enforceable

Williams v Roffey

Brothers

Sub-contractor offered a bonus to

finish on time

Avoidance of penalty for the main

contractor was

consideration for the bonus

Foakes v Beer Lender agreed delayed repayment

schedule with no interest

No consideration for variation of

contract. Interest was due

Central London Property

Trust v High

Trees House

Landlord offered to reduce rent on

high rise flats in WW2

Promissory estoppel. Variation

freely offered with no

coercion could not go

back on offer

Intention

Balfour v Balfour Husband went to Ceylon

promised to support wife

Domestic agreement presumed no

intention to create legal

relations

Jones v Vernon Pools Contract binding in honour only Presumption in commercialcontracts is that legal

relations are intended but

it can be rebutted.


3/8

Contract terms and exclusion clauses

Poussard v Spiers &

Pond

Opera singer ill at start of run.

Producers put in

replacement

Failing to attend was breach of

condition gave right to

rescind

Bettini v Gye Opera singer 3 days late for

rehearsals

Attendance at all rehearsals was a

warranty breach gives

right to damages, not

rescission

Curtis v Chemical

Cleaning Co

Employee said exclusion clause

only applied to beads and

sequins

Misrepresentation rendered the

exclusion invalid

Thompson v LMS

Railway

Rail ticket referred to standard

conditions. They excluded

liability for everything.Train too long for platform

woman fell off

Exclusion clause was adequately

communicated

Olley v Marlborough

Court

Notice in hotel bedroom denied

liability for loss

Not effective communicated after

contract was made

Photo Productions v

Securicor

Securicor night watchman set fire to

building

Exclusion clause was effective

Misrepresentation

Leaf v International

Gallery

Sale of fake Constable Mistake was not operative.

Misrepresentation was

innocent so rescission was

only possible remedy. Sale

was 5 years ago too late

delay defeats equity

Performance

Cutter v Powell Sailor died part way into journey.Captain refused to pay

wages

No wages due part performance isno good

Sumpter v Hedges House part built. Builder went bust.

Asked for quantum meruit

No amount payable for building.

Acceptance could not be

freely given.

Hoenig v Isaacs House refurb largely completed but

not exactly to spec.

Homeowner refused to pay

Had to pay as performance

substantially completed.

Could deduct cost to finish

to spec


4/8

Discharge by breach

Sumpter v Hedges Builder half built house. Asked for

part of price

No quantum meruit as customer

had no choice about

accepting

Hochster v de la Tour Tour courier cancelled trip well in

advance.

Immediate action for anticipatory

breach was allowed

White and Carter

(Councils) v

McGregor

Names on bins. Client cancelled

order before work done

Injured party can carry on

regardless and sue for full

price

Avery v Bowden Shipping contract cancelled in

advance. Wronged party

opted to continue and sue

for full price. War broke

out

War frustrated contract. Lost right

to sue

Omnium DEnterprise v

Sutherland

Ship chartered out then sold before

start of charter

Anticipatory breach - not

frustration. The events

were avoidable by the

owner

Remedies for breach of contract


Hadley v Baxendale Broken mill shaft. Delay in fixinglead to great loss of

business

Remoteness of damage notforeseeable couldnt sue.

Victoria Laundry v

Newman

Industries

Delay in completing contract led to

huge cost from lost

business

Only liable for reasonably

foreseeable damages

Chaplin v Hicks Beauty contestant wrongly

excluded from contest

Difficult to assess damages but

plaintiff still entitled

Cellulose Acetate Silk vWidnes Foundry

Loss much bigger than contractallowed for

Damages fixed at level proscribedin contract.

Ford Motor Co v

Armstrong

Contract proscribed fixed damages

for trivial breaches

Penalty clauses not upheld. Only

sue for actual loss

Jarvis v Swan Tours Holiday not as good as described in

brochure

Could sue for disappointment and

distress

Warner Bros v Nelson Contract stopped Bette Davis

working for other film

companies

Injunction illustration


5/8

AGENCY

Watteau v Fenwick Pub manager ordered cigars despite

specific orders not to. Pubowner refused to pay

Implied agency. Owner bound on

contract.

GNR v Swaffield Lonely, unaccompanied horse in

station. GNR arranged

stabling. Owner refused to

pay

Agency by necessity. Owner had to

pay.

Kelner v Baxter Promoters bought wine on behalf

of company not yet

formed.

Company not liable on contract as

did not exist when contract

made. Promoters personally

liable

Yonge v Toynbee Solicitors acted for client who had

gone insane.

Insanity ended agency. Solicitors

liable for breach of warranty

of authority.


6/8

TORT

Donoghue v Stevenson Decomposed snail in ginger beer.

Great upset after drinking

Duty of care despite no contract.

Case established

negligence.

Bourhill v Young Woman heard crash looked out at

messy accident -

miscarried

No duty of care; too remote.

Hedley Byrne v Heller Ad agency gets positive reference

from banker of potential

client. Client then goes

bust owing money

Negligent mis-statement. Liable if

reasonably expect others to

rely on your statement

Caparo Inds v Dickman Caparo took over Fidelity relying

on info in audited accounts.These turned out to be in

error

Auditors normally only liable to

those to whom their opinion is directly

communicated.

Haley v LEB Blind person falling down marked

hole in road

LEB negligent. Must take into

account potential

susceptibility.

Watt v Herts CC Fireman injured while dashing off

to blaze.

Less care required if urgent

objective. Authority not

liable

Paris v Stepney BC One eyed mechanic no goggles

supplied. Blinded by freakshard.

Employer liable. More care

required given potentialseriousness

Bolton v Stone Freak cricket shot hit ball out of

ground injuring passer by.

Club not liable. Highly unlikely

accident.

ADT v Binder Hamlyn Partner gave verbal assurance to

buyer that accounts were

OK. Bought and lost

money.

Firm liable for negligent mis-

statement due to direct

comment.

ICI v Shatwell Explosive brothers. Willingly

playing with explosives

blown up

Volenti non fit injuria. Employer

not liable.


7/8

EMPLOYMENT

Pepper v Hart Teacher sent child to school at

reduced fee. Revenue tried

to assess benefit at average

cost

Cost in legislation interpreted as

average cost. House of

Lords used Hansard to help

Hall v Lorimer Vision mixer worked for many

employers for short time

Self employed

COMPANY

Salomon v Salomon Company financed by owner

mainly by secured debt.

Company insolvent. Ownerclaimed security

Allowed. Company separate legal

person. Shareholder could

also be secured creditor

DHN Food Distributors

v Tower

Hamlets

Group company traded from

premises owned by other

group company.

Compulsorily demolished

Compensation payable both for

building and loss of trade.

Whole group viewed as

owner

Gilford Motor Co v

Horne

Mechanics contract banned

approaches to old

customers after leaving job.

Wrote out from newlimited company instead

Not allowed. Company a sham

merely to avoid contract

obligation

Daimler v Continental

Tyre and Rubber

1916 contract between 2 British

companies one with

German shareholders.

English company withdrew

No breach. Veil lifted to reveal other

company as enemy

Ebrahimi v Westbourne

Galleries

2 shareholders (60%) expelled

other shareholder as

director

Court agreed just and equitable

winding up as quasi

partnership

Hickman v KentSheepbreeders Articles said disputes must go toarbitration. Shareholder

sued company over dispute

Articles binding on shareholder. Hadto go to arbitration

Pender v Lushington Articles allowed 1 vote per share

up to max of 100. Large

holder passed some shares

to nominee. Chairman

wouldnt count votes

Articles binding on company. Had to

count votes

Rayfield v Hands Articles said that selling

shareholders must offer to

directors who would buy atfair price.

Articles binding shareholder v

shareholder. Directors

obliged to buy


8/8

Eley v Positive Life Articles said Eley Co solicitor for

life. Sacked. Sued for

breach

Articles dont make contracts

between company and 3rd

party. Could not sue

Re New British Iron Articles stated directors to be paid1,000pa. Not paid

Articles can be used to flesh outexisting contract. 1,000

binding

Dafen Tinplate v Llanelli

Steel

Proposed change of articles to

allow directors to buy out

any shareholder

Not allowed. Not for benefit for

company as whole

Sidebottom v Kershaw

Leese

Proposed change of articles to

allow directors to buy out

any shareholder competing

with co

Allowed. Although bad for 1

shareholder, would benefit

co as a whole

Bushell v Faith 3 equal shareholder / directors.

Articles said attacked

director got treble votes. 2

tried to sack 3rd

Couldnt sack him. Any vote would

fail 2:3

Freeman & Lockyer v

Buckhurst Park

Director described himself as MD.

Made contract. Co refused

to pay.

Director held out as MD has

apparent authority to bind

co. Co must pay.

Panorama Developments

v Fidelis

Furnishings

Co secretary hired cars claiming for

co use. Used them

personally. Co refused to

pay

Secretary has apparent authority to

bind co in admin contracts.

Co had to pay.

Dorchester Finance v

Stebbing

Experienced accountant / director

signed blank cheques.

Colleague stole large sum.

Liable for breach of duty to use

skill and care. Accountant

should have known better.

Percival v Wright Shareholder selling. Directors

bought knowing share

price would rise soon

Directors OK. Duty owed to co as

whole not to individual

shareholders

Foss v Harbottle Minority shareholders bringingaction against director /

majority shareholder who

defrauded co

They failed. If wrong is done to aco, the proper plaintiff is

the co

acca f4 cases summary

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