Doyle v Olby (Ironmongers) Ltd
Encyclopedia
Doyle v Olby Ltd [1969] 2 QB 158 is an English contract law
case concerning misrepresentation
. It establishes the different measure of damages between breach of contract and deceit.
, Surrey
. Mr Doyle was told the business was ‘all over the counter’. Really, half the shop's business came through a travelling salesman. Mr Doyle made heavy losses. The judge awarded £1500 in deceit, based on two and a half times the cost of employing a part-time traveller at £600 a year, as equivalent to the cost of making good the representation or the reduction in the value of the goodwill. Mr Doyle appealed.
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 misrepresentation
Misrepresentation in English law
Misrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...
. It establishes the different measure of damages between breach of contract and deceit.
Facts
Mr Herbert Doyle bought a business from Olby (Ironmongers) Ltd at 12, Upper High Street, EpsomEpsom
Epsom is a town in the borough of Epsom and Ewell in Surrey, England. Small parts of Epsom are in the Borough of Reigate and Banstead. The town is located south-south-west of Charing Cross, within the Greater London Urban Area. The town lies on the chalk downland of Epsom Downs.-History:Epsom lies...
, Surrey
Surrey
Surrey is a county in the South East of England and is one of the Home Counties. The county borders Greater London, Kent, East Sussex, West Sussex, Hampshire and Berkshire. The historic county town is Guildford. Surrey County Council sits at Kingston upon Thames, although this has been part of...
. Mr Doyle was told the business was ‘all over the counter’. Really, half the shop's business came through a travelling salesman. Mr Doyle made heavy losses. The judge awarded £1500 in deceit, based on two and a half times the cost of employing a part-time traveller at £600 a year, as equivalent to the cost of making good the representation or the reduction in the value of the goodwill. Mr Doyle appealed.
Judgment
Lord Denning MR increased the damages to £5500. He said Mr Doyle could claim for all damage flowing directly from the deceit which was not rendered too remote by Mr Doyle's own conduct, whether or not the defendants could have foreseen such consequential loss. The plaintiff's position before the fraudulent inducement should be compared with his position at the end of the transaction. He said damages for fraud and conspiracy are differently assessed from those for breach of contract,See also
- English contract lawEnglish contract lawEnglish 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...
- Misrepresentation in English lawMisrepresentation in English lawMisrepresentation in English law is an area of English contract law, which allows a person to escape a contractual obligation or claim compensation for losses. If one person can show that she entered an agreement because of another person's false assurances, then the other person will be unable to...