Professional Documents
Culture Documents
1
sh = shillings Monday, 26 October 2015
Property Trust Ltd. v High Trees House Ltd - D held a lease of certain houses from P. The
(1947) KB 130 lease contained a covenant of repair within 6
months of being given notice.
- P gave notice. D suggested that a sale might
be arranged and that it would defer carrying
out any repairs until discussed.
- Some negos took place but no agreement
was resulted.
- April :P then served a notice to quit on the
basis of the Ds failure to comply with the
original notice to repair.
Held: P was not entitled to do so. Time pauses
during the negotiation period. Eviction notice
should be served during June.
- P owned a block of flats in London to which Tool Metal Manufacturing Co. v Tungsten
Electric Co.
they rented to the defendants for 2500,
per annum.
- During the Second World War, the
occupancy rate was low and P agreed to
halve the rent.
- After the war ended, the occupancy rate was
increased to normal levels. The plaintiffs then
sought to 1) return to the original terms of
the agreement and 2) claim the other half of
the rent for the war years as there was no
change in consideration.
HELD: 1) Ps were entitled to recover the full
rent from post-war. 2) Ps cannot claim the
balance during war years.
RATIO: A promise intended to be binding,
HELD: The promisor could withdraw the
intended to be acted upon, and in fact acted on,
promise by giving reasonable notice, from which
is binding s far as its terms properly apply. -
the ori terms of the agmt would come back into
Denning J. Ps were bound by their promise
operation.
which had been acted upon by Ds during the
war years.
Requirements
Hughes v Metropolitan Railway (1877) 2 App 1. There must be a Contractual or Legal
Cas 439 Relationship.
Durham Fancy Goods v Michael Jackson (FG)
- DFG sold some goods to MJ. DFG prepared a
demand draft, DFG wrote M. Jackson Fancy
Group instead of Michael Jackson Fancy
group.
- CEO of MJFG signs the draft/bill and DFG
sent it to the bank. The bank rejected the
draft due to the incorrect name.The director
of the company has to check on the name. If
not, the director would be representing a
fictitious company, then the director
becomes personally liable to DFG.
2
sh = shillings Monday, 26 October 2015
HELD: Although there is no contractual felt cheated. Rees wanted to rely on PE. He
relationship between the director and DFG but argued that the agreement was
there is a legal relationship (s 108 of the unambiguous.
Companies Act 1948 + Mr Jackson was a Held: Is Rees/Builders acting in an inequitable
director of MFJ + the contractual arrangement manner? Rees - because the wife gave the
existed between Ps and Ds which led to the bill) ultimatum and he refused to pay even he knew
as a third party. The director cannot escape the amount. Rees cannot rely on PE to not pay.
from the agreement and DFG can apply When one comes in to equity, one must come
promissory estoppel. with clean hands.
MJFG receives the goods.
Was it used as a shield and not a sword?
2 NOVEMBER 2015 Coombe v Coombe
- A couple went through a divorce. The wifes
2. Clear and Unambiguous Promise. solicitor met the husbands solicitor to argue
Hughes v MRC about support money. The H agreed to a sum
to which the wife agreed to.
3. Reliance. - After some time, the husband stopped
To rely on promissory estoppel, there is no need sending the money. TJ allowed wife to use PE
to prove that one will gain detriment/benefit. to claim the money.
Just need to show that one has acted on their HELD: TJs decision was overturned at COA.
promise. RATIO: At that time, the H was forced to pay the
Ajayi v Brisdcoe, Alan Co Ltd v El Nasr Export & support although the W earned more than H.
Import Co. He lost his job and therefore could not afford to
pay W. Was the contract done with equal
parties?
Lord Denning stated that consideration
remained a cardinal necessity of the formation
of contract, but not of its modification of existing
legal relationship/discharge. PE is limited to
the modification of existing legal relationships
rather than to the establishment of new
obligation.