Collateral Contract in UK Law

Leading Cases
  • Business Environment Bow Lane Ltd v Deanwater Estates Ltd
    • Court of Appeal (Civil Division)
    • 27 Jun 2007

    The law relating to collateral contracts is well-established but in connection with sales or leases of land needs to be applied with caution if not the suspicion to which Lord Moulton referred in Heilbut Symons v Buckleton [1913] AC 30, 47. It must also be recognised that such a promise may be binding on successors in title of both parties without the need for notice or registration as a Land Charge or in the Land Registry, cf Brikom Investments v Carr [1979] 1 QB 467.

  • Evans (J.) & Son (Portsmouth) Ltd v Andrea Merzario Ltd (Ruhr)
    • Court of Appeal (Civil Division)
    • 13 Nov 1975

    When a person gives a promise, or an assurance to another, intending that he should act off it by entering into a contract, and he does act on it by entering into the contract, we hold that it is binding. He made the promise in order to induce Mr. Leonard to agree to the goods being carried in containers. On the faith of it, Mr. Leonard accepted the quotations and gave orders for transport.

    The Court is entitled to look at and should look at all the evidence from start to finish in order to see what the bargain was that was struck between the parties. The defendants gave such a promise which to my mind against this background plainly amounted to an enforceable contractual promise.

  • Tinsley v Milligan
    • House of Lords
    • 24 Jun 1993

    In a case where the plaintiff is not seeking to enforce an unlawful contract but founds his case on collateral rights acquired under the contract (such as a right of property) the court is neither bound nor entitled to reject the claim unless the illegality of necessity forms pan of the plaintiff's case.

  • Walford and Others v Miles and Another
    • House of Lords
    • 23 Jan 1992

    A duty to negotiate in good faith is as unworkable in practice as it is inherently inconsistent with the position of a negotiating party. In my judgment, while negotiations are in existence either party is entitled to withdraw from those negotiations, at any time and for any reason. There can be thus no obligation to continue to negotiate until there is a "proper reason" to withdraw. Accordingly a bare agreement to negotiate has no legal content.

  • Heyman v Darwins Ltd
    • House of Lords
    • 20 Feb 1942

    The word "repudiation" has also led to difficulties because it is an ambiguous word constantly used without precise definition in contract law. I do not attempt an exhaustive list of the senses in which the word has been used, but I may give some instances. Repudiation of a contract is sometimes used as meaning that the defendant denies that there ever was a contract in the sense of an actual consensus ad idem.

  • Axa Sun Life Services Plc v Mortgage UK Financial Services Ltd & others
    • Court of Appeal (Civil Division)
    • 12 May 2011

    However, different considerations apply to section 3(2)(b)(i). Quite how that 'paragraph' should operate is not entirely clear, as is demonstrated by the somewhat tentative discussion in Chitty on Contracts, 30 th edition, at paragraph 14–073.

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Legislation
  • Corporate Insolvency and Governance Act 2020
    • UK Non-devolved
    • January 01, 2020
    ...... (d) (d) wages or salary arising under a contract of employment, . (e) (e) redundancy payments, or . (f) (f) debts or ... (i) steps to enforce a collateral security charge (within the meaning of the Financial Markets and ......
  • Sale of Goods Act 1979
    • UK Non-devolved
    • January 01, 1979
    ...... I . Contracts to Which Act Applies Part I . Contracts to Which Act Applies . S-1 . ...which are the subject of a contract of sale, but. collateral to the main purpose of such contract, the. breach of which gives rise to a ......
  • Law Reform (Personal Injuries) Act 1948
    • UK Non-devolved
    • January 01, 1948
    ......(3) Any provision contained in a contract of service or. apprenticeship, or in an agreement collateral thereto, ......
  • Financial Markets and Insolvency (Settlement Finality) Regulations 1999
    • UK Non-devolved
    • January 01, 1999
    ...... TRANSFER ORDERS EFFECTED THROUGH A DESIGNATED SYSTEMAND COLLATERAL SECURITY . . 13. . Modifications of the law of insolvency . . . 14. ... . . 16. . Disclaimer of property, rescission of contracts,& c . . . 17. . Adjustment of prior transactions . . Collateral ......
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Books & Journal Articles
  • The Marine Insurance Slip and HIH v New Hampshire
    • Nbr. 1-2, July 2011
    • Southampton Student Law Review
    • Ayodeji Sasegbon
    • 69-73
    ...... proposal fo r insurance and is instead regarded as a binding contract. It will be proposed that this reconceptualisation left it open for the ... Attempts to circumvent section 22: collateral contract There have been several attempts made by insureds to ......
  • What Price Auctions Without Reserve?
    • Nbr. 64-3, May 2001
    • The Modern Law Review
    ...... only an invitation to treat, that a bid constitutes the contractual offer, and that a contract for sale of a lot is effected on the fall of ... buyer could recover against the auctioneer for breach of a collateral contract to sell without reserve. Martin B said 3 it seems to us that the ......
  • NEW ANGLES IN THE ETERNAL HIRE‐PURCHASE TRIANGLE
    • Nbr. 25-1, January 1962
    • The Modern Law Review
    ...... had let the car to the hirer under a hire-purchase contract. Since the sum to be paid under this contract exceeded ... notion of ‘the some- what inappropriately described collateral contract or “ floating warranty ” between the hirer ......
  • The Policy-Slip (Dis)connect
    • Nbr. 1-2, July 2011
    • Southampton Student Law Review
    • Karishma A. Galliara
    • 59-64
    ......It is trite law that a slip, once scratched, concludes the contract of insurance between the assured and the insurer. 2 It is al so c omm on ... two cases, the Courts refused to enforce the slip on the ‘collateral contract’ basis, since the revenue laws in force at that time clearly ......
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Law Firm Commentaries
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