''Car and Universal Finance Co Ltd v Caldwell''
965
Year 965 ( CMLXV) was a common year starting on Sunday (link will display the full calendar) of the Julian calendar.
Events
By place
Byzantine Empire
* Arab–Byzantine War: Emperor Nikephoros II conquers the fortress cities of Tar ...
1 QB 525 is an
English contract law
English contract law is the body of law that regulates legally binding agreements 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 ...
case concerning
misrepresentation
In common law jurisdictions, a misrepresentation is a false or misleading '' R v Kylsant'' 931/ref> statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The m ...
. It holds that an unequivocal act communicating the wish to rescind a contract can override third party rights. The communication does not need to go to the misrepresentor.
Facts
Mr Caldwell owned a
Jaguar
The jaguar (''Panthera onca'') is a large cat species and the only living member of the genus '' Panthera'' native to the Americas. With a body length of up to and a weight of up to , it is the largest cat species in the Americas and the th ...
. A rogue named 'Mr Norris' convinced him to sell it for a £965 cheque and a £10 deposit. On 13 January when he tried to cash the cheque it was dishonoured. Mr Caldwell told the police and the Automobile Association straight away. Mr Norris sold the car to some dealers, who sold it on, and it was sold on again and again to Car and Universal Finance Ltd. They bought the car in good faith without any notice. The question was whether Caldwell had validly rescinded before the car was acquired by a bona fide purchaser for value without notice?
Judgment
High Court
Lord Denning MR (sitting in the Queen's Bench) said the contract was validly rescinded. It was so without communication, but through an unequivocal act of election, demonstrating Caldwell no longer wished to be bound.
Court of Appeal
Seller LJ, on appeal said the ‘general rule, no doubt, is that where a party is entitled to rescind a contract and wishes to do so the contract subsists until the opposing party is informed that the contract has been rescinded. He noted that just because, ‘another innocent party or parties may suffer does not in my view of the matter justify imposing on a defrauded seller an impossible task.’
Upjohn LJ said if a party absconds and makes communication of rescission impossible, he cannot insist on his right to be made aware. ‘I think that the law must allow the innocent party to exercise his right of rescission otherwise than by communication or repossession.’
Davies LJ noted the old maxim ''
lex non cogit ad impossibilia'' (the law does not compel the impossible).
See also
*
English contract law
English contract law is the body of law that regulates legally binding agreements 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 ...
*
Misrepresentation in English law
In common law jurisdictions, a misrepresentation is a false or misleading '' R v Kylsant'' 931/ref> statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The m ...
Notes
{{reflist, 2
English misrepresentation case law
Lord Denning cases
Court of Appeal (England and Wales) cases
1965 in United Kingdom case law