Contract Law Case Summaries

Parker v South Eastern Railway Co [1877] 2 CPD 416 is a leading contract law case on the incorporation of terms by notice. The Court held that an exclusion clause printed on a railway cloakroom ticket may become part of the contract if the company took reasonable steps to bring the term to the customer's attention. Actual knowledge of the term is not required; reasonable notice is sufficient.

Routledge v McKay [1954] 1 WLR 615 is a leading contract law case on the distinction between terms and representations. The seller advertised a second-hand motorcycle as a 1942 model, relying on its registration document. A week later, the parties signed a written contract that did not mention the model year. The court held that the statement was a representation, not a contractual term, largely because of the time gap and its omission from the written agreement.

Bannerman v White [1861] 10 CB (NS) 844 is a leading contract law case on the distinction between a contractual term and a mere representation. The buyer asked whether hops had been treated with sulphur and stated that the purchase depended on the answer. The seller said they had not. As the statement was fundamental to the contract, it was held to be a contractual term. When the statement proved false, the buyer was entitled to reject the goods.

Manchester Diocesan Council for Education v Commercial and General Investments Ltd [1970] illustrates an important rule of contract law: where an offer suggests a method of acceptance but does not make it mandatory, acceptance by an equally effective method will still be valid. The case confirms that courts focus on substance over technicalities when determining whether a binding contract has been formed.

Adams v Lindsell (1818) 1 B & Ald 681 is a landmark contract law case that established the postal rule. The court held that acceptance is effective when a letter of acceptance is posted, not when it is received. This decision provides certainty in contracts formed by post and remains a foundational principle in English contract law on offer and acceptance

Felthouse v Bindley [1862] 11 CB 869 is a leading contract law case on acceptance. The court held that silence cannot amount to acceptance of an offer. A person cannot impose contractual obligations by stating that a failure to respond will be treated as consent. The case establishes that acceptance must be communicated through words or conduct, making it a key authority on offer and acceptance in English contract law.

Payne v Cave [1789] 3 TR 148 is a leading contract law case on auctions and offer and acceptance. The court held that a bid at an auction is merely an offer, which may be withdrawn at any time before the auctioneer accepts it by the fall of the hammer. The decision established the important principle that no binding contract is formed until acceptance occurs, making bids revocable prior to completion of the sale.

Tinn v Hoffman [1873] 29 LT 271 is a leading contract law case on cross-offers. The court held that where two parties independently post identical offers and acceptances at the same time, neither communication can operate as an acceptance of the other because neither party had knowledge of the other's offer. The case highlights the importance of communication and mutual assent in contract formation.

When does acceptance take effect in contract law? In Entores v Miles Far East Corporation [1955], the Court of Appeal held that acceptance by an instantaneous communication, such as telex, is effective when it is received, not when it is sent. The case established the receipt rule, distinguished the postal rule, and laid the foundation for modern contract formation by email and other electronic communications.

Stevenson v McLean (1880) 5 QBD 346 case summary and analysis.

Hyde v Wrench [1840] 49 ER 132 case summary and analysis.

Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 case summary and analysis.