Professional Documents
Culture Documents
615
1954
a n y p a r t of t h e d e b t r e m a i n s d u e . A c o m m i t t a l o r d e r m a d e i n
this division u n d e r t h e n e w rules continues in operation until t h e
d e b t i n r e s p e c t of w h i c h i t w a s m a d e h a s b e e n fully p a i d . I n
t h o s e c i r c u m s t a n c e s , i t is n o l o n g e r n e c e s s a r y , a s i t h a s b e e n i n
t h e p a s t , t o m a k e a p p l i c a t i o n t o t h i s c o u r t a t t h e e n d of t h e y e a r
to r e n e w t h e c o m m i t t a l order.
F o r those reasons I hold t h a t
Mr. Campbell's application was unnecessary.
Solicitor:
ment.
A. G. Parry-Jones,
Laiv
Society,
Divorce
SlCHEI,
V.
SlCHEL.
Willmer J.
Depart-
J. B . G.
[COURT OF APPEAL.]
*BOUTLEDGE
NUGENT
ASHGEOVE
MAWSON
v. M c K A Y .
(THIRD
(FOURTH
(FIFTH
C. A.
PARTY).
1954
Mar. 9, 10.
PARTY).
PARTY).
Evershed M.R.,
Denning and
Romer L.JJ.
[ P l a i n t N o . H . 1607.]
Sale
of GoodsWarrantyCollateral
warrantySale
of second-hand
motor-bicycle False statement
in registration
book as to year
bicycle put on marketString
contractsNo
fraudulent
misrepresentation by seller in questionWhether
any warranty
given.
lievenueStamp
dutyUnstamped
document admitted in evidence in
court belowDuty
of Court of AppealStamp
Act, 1891 (54 & 55
Vict. c. 39), s. 14. Court of Appeal.
FraudWho
may sueSale
of goodsMotor-vehicleFalse
statement
in, registration
"bookString
contracts.
The owner of a 1930 Douglas motor-bicycle reconditioned i t a n d
thereafter i t was sold with a registration book showing t h a t t h e
motor-bicycle was a late 1941 or 1942 model. The motor-bicycle was
sold to t h e fifth p a r t y who sold i t to the fourth p a r t y . On this sale
the terms of t h e agreement for sale were set o u t in a memorandum
in writing. T h e memorandum contained no mention of t h e date of
m a n u f a c t u r e of t h e motor-bicycle. I t was subsequently sold by t h e
fourth p a r t y to t h e t h i r d p a r t y who sold i t to t h e defendant, who
sold i t to t h e plaintiff. The plaintiff having found o u t t h a t t h e
motor-bicycle was n o t a 1941 model, b u t a 1930 model, sued t h e
defendant who brought in the t h i r d p a r t y , who brought i n the fourth
p a r t y , who brought in t h e fifth p a r t y . T h e S t a t u t e of L i m i t a t i o n s
prevented t h e fifth p a r t y from bringing i n as sixth p a r t y t h e person
who sold t h e motor-bicycle to h i m . F r a u d u l e n t misrepresentation
was n o t alleged. A t t h e h e a r i n g i t appeared to have been assumed
as between t h e plaintiff a n d t h e defendant, t h e defendant a n d t h e
t h i r d p a r t y a n d t h e t h i r d p a r t y a n d t h e fourth p a r t y t h a t t h e
express statement as to t h e age of t h e motor-bicycle constituted a
w a r r a n t y . T h e county court judge held t h a t there h a d been a breach
of w a r r a n t y a n d gave judgment for t h e fourth p a r t y against t h e
fifth p a r t y . The fifth p a r t y appealed.
The fifth p a r t y h a d relied on t h e written memorandum of h i s
agreement with t h e fourth p a r t y . T h a t memorandum, which was
admitted in evidence by t h e coiinty court judge, was n o t stamped
616
C. A.
1954
KOUTLEDGE
V.
MCKAY.
APRIL 9, 1954
and the question was raised on the appeal whether it was the duty
of the Court of Appeal to take notice, in accordance with the
requirements of section 14 of the Stamp Act, 1891, of the omission
to stamp :
Held, (1) that the Court of Appeal could not assume merely
because an unstamped document had been admitted in evidence below
that there had been a decision that it did not require stamping. It
was the duty of the Court of Appeal to take notice of the omission
to stamp. On the true construction of the document in question, it
did not require stamping being exempt under exemption (3) to the
heading " agreement " in the First Schedule to the Stamp Act, 1891,
as an agreement relating to the sale of goods;
(2) that the evidence did not establish the existence of any
collateral contract by which a warranty was given by the fifth
defendant that the motor-bicycle was a 1941 model and accordingly
the appeal would be allowed.
The dictum of Lord Moulton in Heilbut, Symons & Co. v.
Buckleton [1913] A.C. 30, 47 considered and applied.
Per Denning L.J. Where a motor-car or motor-bicycle is sold
second hand from one person to another in succession, one seller in
the chain may tell a purchaser what year's model it is, basing his
information on the statement in the registration book. If that statement is false, because some remote seller has falsified the number,
the answer to the question whether each seller is responsible to each
buyer in damages must depend upon a proper application of the law
as to innocent misrepresentation and warranty. The seller, unless
he is the first owner, is not the originator of the statement about the
year in the registration book. In the ordinary way the statement is
only a representation and not a warranty. If the entry in the
registration book should turn out to be false,, the eventual buyer
could sue the original wrongdoer in fraud, but he could not sue
innocent people in between who merely passed on a statement which
was in the registration book.
APPEAL from
County Court.
Judge
Praser
Harrison sitting at
Liverpool
[1954] 1 W . L . E .
The county court judge gave judgment for the fourth party
against the fifth party for the sum of 80.
The fifth party appealed. In the court below the fifth party
relied on the written memorandum of the terms on which he had
sold the bicycle to the fourth party. This memorandum was
not stamped but it had been admitted in evidence. On the
appeal, the court raised the question whether it was bound by
section 14 of the Stamp Act, 1891,1 to take the objection that
the memorandum was not stamped.
617
C. A.
1954
KODTLEDGB
V.
MCKAY.
L.J.
HOMER L.J.
I agree.
I agree.
T H E W E E K L Y LAW EEPOETS
618
C. A.
1954
BOUTLEDGE
V.
MOKAY.
APRIL 9, 1954
3
4
Ibid. 49.
(1828) 3 Man. & Ey. 2.
[1954] 1 W.L.R.
619
T H E W E E K L Y LAW EEPOETS
620
C. A.
1954
RotJTLEDGE
V.
MCKAY.
Everslied M.R.
APRIL 9, 1954
for the latter for the first time raised the question in clear terms
whether, as between him and the fourth party, there ever was
a warranty at all; and he particularly relied upon the circumstance that in the sale (or exchange; for it was substantially
an exchange) which took place between the fourth and fifth
parties a written memorandum of agreement was entered into
at the time when the transaction took effect.
I shall have to refer presently in a little more detail to the
evidence and to that agreement; but, bearing in mind the
passages which I have read from Lord Moulton's speech, in
approaching this matter it is important to observe that, if there
was a warranty, then there was a contract between the two
parties to the effect that the seller, for good consideration,
undertook to indemnify the buyer against any loss the buyer
might suffer, if, in truth, the origin of this motor-cycle was not
1941 or 1942 but some much earlier date. Such a contractual
obligation could be part of the contract of sale itself or it might
be collateral to it. In the present case, if there was a warranty,
it must have been collateral to the actual contract of sale or
exchange, though I do not think that that matter is necessarily
conclusive of the question before us.
I have mentioned these anterior questions partly because of
the feeling of regret which I have about this case and which I
have already mentioned, but also because (in fairness to the
judge) it seems clear to me that his attention was not directed,
at any rate during the earlier stages, to the essential requirements of a warranty; and particularly he did not have the
advantage of refreshing his memory by looking again at Lord
Moulton's speech: so that when the matter came to be determined as between the fourth and fifth parties the reference to
what was stated in the log book had come to be treated (as far
as I can see) as prima facie constituting a warranty; with the
result that the judge's judgment was confined, in effect, to this:
was that prima facie effect of the reference displaced by the
written contract? I found that conclusion on this passage from
the notes of the judgment: " I then dealt in some detail with
' the transaction between the fourth party and the fifth party.
' I accepted the evidence of Mr. Philip Ashgrove, the fourth
' party, and I rejected any evidence given by Mr. John Mawson,
' the fifth party, which conflicted with that given by Mr. Ash' grove. I found as a fact that before the purchase in question
' in October, 1949, the fifth party gave a warranty to the fourth
' party that the Douglas motor-cycle combination was a 1942
' model. There was no dispute that this "videlicet, that it
was a 1942 model" was incorrect. That, in so far as it is a
question of fact, I found and in so far as it is a question of
construction I held, that the written agreement signed on
October 30, 1949, by the fourth party and the fifth party and
having therein the words ' That when the 30 is paid over
[1954] 1 W.L.K.
621
" ' t h a t this transaction is closed ' was not intended to exclude
" any w a r r a n t y . "
Now Mr. Paterson has very properly pressed upon us t h a t ,
in so far as t h a t is a m a t t e r of fact, then a finding by the county
court judge, who heard the witnesses, would be conclusive in
this court; provided t h a t there was some evidence upon which
it could be founded. B u t I think (and I m u s t state this at t h e
beginning of my observations) t h a t the judge did not really direct
his mind to the question whether there was, in the reference to
the date of origin as it emerged from the evidence, a real
intention to contract, in the sense I have already described and
in the sense which must be found to be present if what otherwise
would be a misrepresentation is to be translated into a warranty.
I think t h a t he did not apply his mind to t h a t , because the
parties had not really during the earlier stages of the battle
raised the m a t t e r and were content to assume t h a t such a
statement did constitute a warranty. I therefore do not feel
t h a t Mr. Paterson's submission can be (in this case) an answer
to the fifth p a r t y ' s appeal.
[His Lordship considered the evidence and continued: ] On
the oral evidence, all there is and all the judge found, or I think
intended to find, was t h a t on the first meeting of the fourth and
fifth parties (and before, be it noted, the bargain was eventually
made), and in answer to a question, the fifth party specifically
stated t h a t it was a 1942 model, and pointed to the corroboration
of t h a t s t a t e m e n t found in the book.
I now t u r n to the written memorandum or contract which
the fourth party had caused to be prepared and which was signed
by the two contracting parties on the second or later occasion.
" I t is agreed between the parties Mr. Ashgrove . . . and Mr.
" Mawson . . . t h a t a 250 c.c. B . S . A . solo motor-cycle N o . "
so and so " n o w b y " " o w n e d b y , " I suppose t h a t m e a n s
" Mr. Ashgrove to be exchanged for a Douglas flat twin 600 c.c.
" combination . . . owned by Mr. Mawson and further Mr. Ash" grove will pay the sum of 30 to complete the transaction. I t
" is understood t h a t when the 30 is paid over t h a t this
" transaction is closed."
Now the point is made (and it is a significant one) t h a t the
Douglas motor-cycle is expressly referred to as being of the
capacity of 600 cubic centimetres, when on this registration book
it is stated as having only 500 cubic centimetres capacity. The
true cubic capacity according to the fifth party was 600; t h a t fact
was deliberately and carefully pointed out by the fifth party,
who showed the discrepancy in t h a t respect in t h e registration
book, and the agreement (and this is significant) expressly refers
to t h a t matter.
This document represents prima facie the record of what the
parties intended to agree when the actual transaction took place.
Mr. Watson has contended t h a t the terms of it necessarily
exclude any w a r r a n t y t h a t is to say, any collateral bargain,
VOL.
42
C. A.
1Q54
0VT
^
MCKAY.
Ever8hed M R
'
622
C. A.
1954
APRIL 9, 1954
[1954] 1 W.L.E.
624
APRIL 9, 1954
allowed.
[WINCHESTER ASSIZES.]
*STBEET
Lyaskey J.
v. D E N H A M .