Oscar Chess Ltd v Williams
A statement by a seller with no special knowledge is more likely to be a representation than a contractual term.
Facts
In 1955 Mr Williams's mother bought a Morris car, which the registration book said was first registered in 1948. Mr Williams later traded the car in to Oscar Chess, a motor dealer, in part exchange for a new car. He described it, honestly and on the basis of the registration book, as a 1948 Morris, and the dealer allowed him £290 for it. Eight months later the dealer discovered, when it checked with the manufacturer, that the car was actually a 1939 model, worth only £175, and that the registration book had been altered by someone before Mr Williams's mother bought it. The dealer sued for the difference of £115, claiming that the car's age was a term of the contract.
Legal principle
The Court of Appeal held, by a majority, that the statement about the car's age was an innocent representation, not a term of the contract, so the dealer had no claim for breach. Whether a statement is a term depends on the intention of the parties, judged objectively from what they said and did. Mr Williams was a private person with no special knowledge of the car's age and was relying on the registration book, while the dealer, as an expert, was in at least as good a position to check the facts. A reasonable person would not have understood him to be guaranteeing the car's age. By the time the dealer discovered the truth, it was too late to rescind for misrepresentation.
Related cases on terms of the contract
- Arnold v Britton [2015] UKSC 36, [2015] AC 1619
- Barton v Morris [2023] UKSC 3, [2023] AC 684
- Bettini v Gye (1876) 1 QBD 183
- Braganza v BP Shipping Ltd [2015] UKSC 17, [2015] 1 WLR 1661
- Bunge Corp v Tradax Export SA [1981] 1 WLR 711
- Chartbrook Ltd v Persimmon Homes Ltd [2009] UKHL 38, [2009] 1 AC 1101
- Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd [1965] 1 WLR 623
- Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26
Studying contract law? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.
This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
