Hartog v Colin & Shields

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Hartog v Colin & Shields
Hasenfell.jpg
Court High Court
Decided 27 June 1939
Citation(s) [1939] 3 All ER 566
Case opinions
Singleton J
Keywords
Mistake - Price of subject-matter of transaction - Goods offered at certain prices per pound instead of per piece - Offeree's knowledge of mistake - Whether acceptance of such offer a binding contract.

Hartog v Colin & Shields [1939] 3 All ER 566 is an important English contract law case regarding unilateral mistake. It holds that when it is obvious that someone has made a mistake in the terms of an offer, one may not simply "snap up" the offer and be able to enforce the agreement.

English contract law Law of contracts in England and Wales

English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth, and to a lesser extent the United States. It is also experiencing gradual change because of the UK's membership of the European Union and international organisations like Unidroit. Any agreement that is enforceable in court is a contract. Because a contract is a voluntary obligation, in contrast to paying compensation for a tort and restitution to reverse unjust enrichment, English law places a high value on ensuring people have truly consented to the deals that bind them in court.

Contents

Facts

Contemporary example of price list, albeit for trade and public acceptance rather than a private offer to one potential buyer as in this case. Prices were expressed per piece, sometimes price lists added the average weight of each piece. Fouke Fur Company price list 1922.jpg
Contemporary example of price list, albeit for trade and public acceptance rather than a private offer to one potential buyer as in this case. Prices were expressed per piece, sometimes price lists added the average weight of each piece.

The defendants, Colin & Shields, [1] were London hide merchants. Mr Louis-Levie Hartog was a Belgian furrier, living in Brussels. Colin & Shields discussed and verbally agreed to sell 30,000 Argentinian hare skins at “10d per skin” (which would have come to £1,250) to Mr Hartog. When the firm the final offer in writing it mistakenly wrote “10,000 skins at 10d per lb” and the other 20,000 lesser skins similarly per lb (imperial pound), not in the standard unit in the industry of per unit (per piece, that is per skin or half skin). As hare skins average around 5oz, this was 516ths of the price discussed and orally agreed upon.

Brussels Capital region of Belgium

Brussels, officially the Brussels-Capital Region, is a region of Belgium comprising 19 municipalities, including the City of Brussels, which is the capital of Belgium. The Brussels-Capital Region is located in the central portion of the country and is a part of both the French Community of Belgium and the Flemish Community, but is separate from the Flemish Region and the Walloon Region. Brussels is the most densely populated and the richest region in Belgium in terms of GDP per capita. It covers 161 km2 (62 sq mi), a relatively small area compared to the two other regions, and has a population of 1.2 million. The metropolitan area of Brussels counts over 2.1 million people, which makes it the largest in Belgium. It is also part of a large conurbation extending towards Ghent, Antwerp, Leuven and Walloon Brabant, home to over 5 million people.

Mr Hartog tried to hold them to this very good written offer. He claimed loss of profit, or, in the alternative, the difference between the contract price and the market price at the time of the breach. Colin & Shields pleaded that their offer was by mistake wrongly expressed. They plead that they had still intended to offer the goods per piece, and not per (imperial) pound. They argued Hartog was well aware of this mistake and fraudulently accepted an offer which he well knew that the defendants had never intended to make. In the circumstances, they denied that any binding contract was entered into, and, if there was, would counterclaim against its enforcement, for its rescission.

Rescission (contract law) remedy which allows a contractual party to cancel the contract

In contract law, rescission is an equitable remedy which allows a contractual party to cancel the contract. Parties may rescind if they are the victims of a vitiating factor, such as misrepresentation, mistake, duress, or undue influence. Rescission is the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract.

Judgment

The judge found in Colin & Shields’ favour on the grounds that the plaintiff must have realised the defendants’ error, which, as it concerned a term of the contract, rendered the contract void. Singleton J read the following judgment.

A plaintiff is the party who initiates a lawsuit before a court. By doing so, the plaintiff seeks a legal remedy; if this search is successful, the court will issue judgment in favor of the plaintiff and make the appropriate court order. "Plaintiff" is the term used in civil cases in most English-speaking jurisdictions, the notable exception being England and Wales, where a plaintiff has, since the introduction of the Civil Procedure Rules in 1999, been known as a "claimant", but that term also has other meanings. In criminal cases, the prosecutor brings the case against the defendant, but the key complaining party is often called the "complainant".

See also

Specific performance

Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such to complete performance of the contract. It is typically available in the sale of land, but otherwise is not generally available if damages are an appropriate alternative. Specific performance is almost never available for contracts of personal service, although performance may also be ensured through the threat of proceedings for contempt of court.

<i>Smith v Hughes</i>

Smith v Hughes (1871) LR 6 QB 597 is an English contract law case. In it, Blackburn J set out his classic statement of the objective interpretation of people's conduct when entering into a contract. Rejecting that one should merely look to what people subjectively intended, he said,

"If, whatever a man's real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other party, and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other party's terms."

<i>The Moorcock</i>

The Moorcock (1889) 14 PD 64 is a leading English contract law case which incepted an important test for identifying the main terms the law will imply into commercial (non-consumer) agreements, that is those "necessary and obvious...to give business efficacy". Terms shall not be implied merely because they appear "desirable and reasonable". The case has been widely cited in later cases and narrowly distinguished.

Notes

  1. Colin & Shields was founded in 1921. In the 1970s the firm was absorbed into Dalgety plc.

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