Amalgamated Investment and Property Co Ltd v John Walker & Sons Ltd [1977] 1 WLR 164 is an English contract law

English contract law

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 the United States...

 case, concerning common mistake and the frustration

Frustration in English law

Frustration in English law is an English contract law doctrine, which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract...

 of an agreement.

Facts

John Walker Ltd

Johnnie Walker

Johnnie Walker is a brand of Scotch Whisky owned by Diageo and originated in Kilmarnock, Ayrshire, Scotland.It is the most widely distributed brand of blended Scotch whisky in the world, sold in almost every country with yearly sales of over 130 million bottles.-History:Originally known as Walker's...

 sold to Amalgamated Investment Co Ltd a bonded warehouse and bottling factory for £1,710,000 for occupation or redevelopment. Amalgamated asked whether the building was designated historic or of architectural interest. John Walker said it was not. Unfortunately, on 22 August 1973 the Department of Environment listed the property. The contract was signed on 25 September 1973. Then the Secretary of State wrote to John Walker that it had been listed, taking effect on that day. The property value dropped to £200,000 (because a listed property which one cannot easily develop is often worth less money). Amalgamated asked for the contract to be set aside for common mistake, or for frustration, depending on whether the listing took effect before or after 25 September.

Judgment

The Court of Appeal said the listing took effect on 27 September, when the Secretary signed the listing papers. However the contract was not frustrated. It held that Amalgamated had taken on the risk that the building could be listed. This was shown by the nature of their pre-contractual enquiries. So the listing did not make the contract something radically different from that contemplated by the parties.