''Phillips v Brooks Ltd''
919
__NOTOC__
Year 919 ( CMXIX) was a common year starting on Friday (link will display the full calendar) of the Julian calendar.
Events
By Place
Byzantine Empire
* March 25 – Romanos Lekapenos, admiral (''droungarios'') of the ...
2 KB 243 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
mistake. It held that a person is deemed to contract with the person in front of them unless they can substantially prove that they instead intended to deal with someone else (see also
Shogun Finance Ltd v Hudson
''Shogun Finance Ltd v Hudson'' 003UKHL 62is an English contract law case decided in the House of Lords, on the subject of mistaken identity as a basis for rescission of a contract. The case has been the subject of much criticism in failing to e ...
).
Facts
On 15 April 1918, a man named North entered Phillips' jewellery shop and said, "I am
Sir George Bullough". He wrote a dud cheque for £3000 to pay for some pearls and a ring. He said he lived in
St. James's Square. Mr Phillips checked the phone directory and found there was someone there by that name. Mr Phillips asked if he would like to take the jewellery with him and Mr North said he would leave the pearls but take the ring 'for his wife's birthday tomorrow'. Mr North then
pawned the ring to Brooks Ltd for £350. When the false cheque was dishonoured, Phillips sued Brooks Ltd to get the ring back.
Note that there are conflicting reports showing that Mr North identified himself after the ring was sold, as
Viscount Haldane
A viscount ( , for male) or viscountess (, for female) is a title used in certain European countries for a noble of varying status.
In many countries a viscount, and its historical equivalents, was a non-hereditary, administrative or judicial ...
said in ''
Lake v Simmons
A lake is an area filled with water, localized in a basin, surrounded by land, and distinct from any river or other outlet that serves to feed or drain the lake. Lakes lie on land and are not part of the ocean, although, like the much larger ...
'', but others say that North identified himself straight away.
Judgment
The earlier judgement of ''
Cundy v Lindsay
''Cundy v Lindsay'' (1877–78) LR 3 App Cas 459 is an English contract law case on the subject of mistake, introducing the concept that contracts could be automatically void for mistake as to identity, where it is of crucial importance.(1877- ...
'' had established that contracts could be automatically void for
mistake to identity
In contract law, a mistake is an erroneous belief, ''at contracting'', that certain facts are true. It can be argued as a defense, and if raised successfully, can lead to the agreement in question being found void ''ab initio'' or voidable, or a ...
. Where this is the case,
title
A title is one or more words used before or after a person's name, in certain contexts. It may signify either generation, an official position, or a professional or academic qualification. In some languages, titles may be inserted between the f ...
does not pass to the fraudulent buyer, and the third party loses out in the entirety. This principle is different where parties contract face to face;
Horridge J stated:
This outcome can be explained by putting it as such: Mr Phillips hoped he was contracting with Sir George Bullough, but in reality he agreed to contract with whoever came into his shop, taking a risk that he was not who he said he was. It had the mere effect of making the contract voidable for fraud, meaning that title passed to the rogue and subsequently to the third party buyer:
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 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 ...
*
Mistake in English contract law
Mistake(s) may refer to:
* An error
Law
* Mistake (contract law), an erroneous belief, at contracting, that certain facts are true
** Mistake in English contract law, a specific type of mistake, pertaining to England
* Mistake (criminal law), ...
*''
Nemo dat quod non habet
''Nemo dat quod non habet'', literally meaning "no one can give what they do not have", is a legal rule, sometimes called the ''nemo dat'' rule, that states that the purchase of a possession from someone who has no ownership right to it also den ...
''
* ''
Cundy v Lindsay
''Cundy v Lindsay'' (1877–78) LR 3 App Cas 459 is an English contract law case on the subject of mistake, introducing the concept that contracts could be automatically void for mistake as to identity, where it is of crucial importance.(1877- ...
''
* ''
Shogun Finance Ltd v Hudson
''Shogun Finance Ltd v Hudson'' 003UKHL 62is an English contract law case decided in the House of Lords, on the subject of mistaken identity as a basis for rescission of a contract. The case has been the subject of much criticism in failing to e ...
''
References
{{reflist, 2
English mistake case law
English misrepresentation case law
High Court of Justice cases
1919 in case law
1919 in British law