Our offices are open as usual over the Easter break

Foley v Classique Coaches Ltd

313 words (1 pages) Case Summary in Cases

07/03/18 Cases Reference this

Disclaimer: This work was produced by one of our professional writers as a learning aid to help you with your studies.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of UK Essays.

If you would like to view samples of the work produced by our academic writers please click here.

Foley v Classique Coaches Ltd (1943) 2 KB 1

Contract – Uncertainty – Enforceability

Facts

Foley owned some land and a petrol station. He sold part of the land adjoining the station to Classique Coaches Ltd, a coach company. One of the conditions of the agreement was that the company purchase all of their fuel for the coaches from Foley’s filling station as long as it could be provided by him. The agreement also contained an arbitration clause. It did not, however, provide a price for the agreement. Classique complied with the terms of this agreement for three years until one of their lawyers advised them that as a price had not been indicated, it was unlikely in his opinion that there was a binding agreement. After this, Classique stopped buying fuel from Foley, who sued them for breach of contract.

Issues

Whether or not the agreement was void for uncertainty because a price had not been mentioned in the agreement.

Held

The agreement was not void for uncertainty simply because the price for the fuel had not been mentioned in the agreement. Classique had performed their agreement for several years, and this obligation could not simply be repudiated. Where the parties had acted as though an agreement had been created and performed their obligations in this way, there was instead an implied term that the price of the fuel to be purchased under the agreement was to be reasonable. Furthermore, if agreement could not be reached on what was a reasonable or fair price, the agreement contained an arbitration clause specifically designed to resolve disputes of this nature. Classique coaches were therefore in breach of contract by failing to purchase fuel from Foley, as required by the agreement.

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

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please.

Ready to get started?