Disclaimer: This work was produced by one of our expert legal writers, as a learning aid to help law students with their studies.

Any opinions, findings, conclusions, or recommendations expressed in this material are those of the authors and do not reflect the views of LawTeacher.net. Any information contained in this case summary does not constitute legal advice and should be treated as educational content only.

Bigos v Bousted

308 words (1 pages) Case Summary

17th Jun 2019 Case Summary Reference this In-house law team

Jurisdiction / Tag(s): UK Law

Bigos v Bousted [1951] 1 All ER 92

Illegality and withdrawal.


The defendant, Bousted, wanted to support his wife while she stayed in Italy for her health. He agreed with the defendant that in return for a loan of £150 in Italian currency for this purpose he would deposit a share certificate in a company with the plaintiff as security for the loan. Both parties knew that this agreement was illegal under the Exchange Control Act 1947 s.1(1) and signed documents to disguise this as a loan. The plaintiff later failed to supply the money and refused to return the share certificate. The defendant claimed for the return of his share certificate.


The plaintiff argued that the contract for the loan was void because it was illegal. Therefore, the defendant could not enforce any of his rights under the agreement.  The general rule is that if the parties are in pari delicto, meaning they are equally at fault, the law favours the person resisting the claim.  However, the defendant argued that an exception to this rule applied, as he had withdrawn from the agreement before the illegal purpose is carried out.


The court found for the plaintiff. The contract was illegal and, therefore, void. At the time the contract was formed both parties were in pari delicto. However, Pritchard J said that there was a difference between withdrawing due to repentance and withdrawing simply because the contract was frustrated before it was carried out. Here, Bousted had not repented and withdrawn. The contract had simply been frustrated by the plaintiff’s refusal to carry it out. Consequently, Bousted could not recover his share certificate under the contract.

Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

Related Content

Jurisdictions / Tags

Content relating to: "UK Law"

UK law covers the laws and legislation of England, Wales, Northern Ireland and Scotland. Essays, case summaries, problem questions and dissertations here are relevant to law students from the United Kingdom and Great Britain, as well as students wishing to learn more about the UK legal system from overseas.

Related Articles