Oscar Chess Ltd v Williams
Encyclopedia
Oscar Chess Ltd v Williams [1957] 1 WLR 370 is an English contract law
case, concerning the difference between a term and a representation.
, relying on the car log book, but the book was a forgery.
(1603) Cro.Jac 4. In Cross v Gardner (1689) Cart. 90, Holt CJ held that ‘An affirmation at the time of a sale is a warranty, provided it appears on evidence to be so intended.’ And this was the ordinary English meaning of a binding promise. But in Heilbut, Symons & Co v Buckleton [1913] AC 30 Lord Haldane LC and Lord Moulton said ‘warranty’ in a technical sense, distinguished from a condition. The crucial point of this case was not whether the representation was a warranty or condition, but a term of the contract at all. Williams’ statement was a mere representation.
Here we can see that the statement did not become a term because a reasonable man (objective test) in the position of the car dealer (Oscar Chess Ltd) would not have thought that a person with no experience in the car market would have guaranteed the truth of the statement.
So the third principle is that the balance of information power between the parties, or one party’s special knowledge, affects whether a representation is a term.
Hodson LJ concurred and Morris LJ dissented because he thought the parties did intend it to be a warranty.
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 the difference between a term and a representation.
Facts
Williams sold Oscar Chess Ltd a Morris car for £290. It was described as a 1948 Morris 10, but it was really a 1939 model worth £175. Williams said it was 1948 in good faithGood faith
In philosophy, the concept of Good faith—Latin bona fides “good faith”, bona fide “in good faith”—denotes sincere, honest intention or belief, regardless of the outcome of an action; the opposed concepts are bad faith, mala fides and perfidy...
, relying on the car log book, but the book was a forgery.
Judgment
Denning LJ said the only possible remedy was a warranty, whose ordinary meaning is ‘to denote a binding promise’. This comes from Chandelor v LopusChandelor v Lopus
Chandelor v Lopus 79 ER 3 is a famous case in the common law of England. It stands for the distinction between warranties and mere affirmations and announced the rule of caveat emptor .-Facts:...
(1603) Cro.Jac 4. In Cross v Gardner (1689) Cart. 90, Holt CJ held that ‘An affirmation at the time of a sale is a warranty, provided it appears on evidence to be so intended.’ And this was the ordinary English meaning of a binding promise. But in Heilbut, Symons & Co v Buckleton [1913] AC 30 Lord Haldane LC and Lord Moulton said ‘warranty’ in a technical sense, distinguished from a condition. The crucial point of this case was not whether the representation was a warranty or condition, but a term of the contract at all. Williams’ statement was a mere representation.
Here we can see that the statement did not become a term because a reasonable man (objective test) in the position of the car dealer (Oscar Chess Ltd) would not have thought that a person with no experience in the car market would have guaranteed the truth of the statement.
So the third principle is that the balance of information power between the parties, or one party’s special knowledge, affects whether a representation is a term.
Hodson LJ concurred and Morris LJ dissented because he thought the parties did intend it to be a warranty.
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...
- Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd [1965] 1 WLR 623
- Interpreting contracts in English lawInterpreting contracts in English lawInterpreting contracts in English law is an area of English contract law, which concerns how the courts decide what an agreement means. It is settled law that the process is based on the objective view of a reasonable person, given the context in which the contracting parties made their agreement...