JD Cleverly Ltd & Anor v Family Finance Ltd [2010] EWCA Civ 1477 (21 December 2010)

JD Cleverly Ltd & Anor v Family Finance Ltd [2010] EWCA Civ 1477 (21 December 2010)

The evidence did not establish that the conduct of the parties was consistent only with the creation of a contract of sale between the dealers and Family Finance Limited; the contractual terms required a signed order, and the sending of the invoice and payment did not, in the circumstances, amount to an offer and acceptance or necessitate the implication of a contract.

Citation
[2010] EWCA Civ 1477
Parties
Appellant/defendant: JD Cleverly Limited; Appellant/defendant: Cwmbran Motors Limited; Respondent/claimant: Family Finance Limited
Jurisdiction
England and Wales
Judgment Date
21 December 2010
Procedural Posture
Civil Appeal / Appeal From Cardiff County Court Judgment
Outcome
Appeal allowed; judgment for the Claimant set aside.
Legal Topics
Formation of Contract, Sale of Goods, Hire Purchase, Implied Contracts, Business Practices in Motor Trade
Contract Law Commercial Law Formation of Contract Sale of Goods Hire Purchase Implied Contracts Business Practices in Motor Trade

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Parties

JD Cleverly Limited

Appellant/defendant

Cwmbran Motors Limited

Appellant/defendant

Family Finance Limited

Respondent/claimant

Procedural Posture

Civil Appeal / Appeal From Cardiff County Court Judgment

Legal Issues

  1. 1 Whether the sending of an invoice by the dealer to the finance company, followed by payment, constituted a contract for the sale of the vehicle between the dealer and the finance company.
  2. 2 Whether the conduct of the parties was sufficient to imply a contract of sale between the dealer and the finance company.

Ratio Decidendi

The evidence did not establish that the conduct of the parties was consistent only with the creation of a contract of sale between the dealers and Family Finance Limited; the contractual terms required a signed order, and the sending of the invoice and payment did not, in the circumstances, amount to an offer and acceptance or necessitate the implication of a contract.

Court Disposition

Appeal allowed; judgment for the Claimant set aside.

Orders

  • Set aside the finding that the sending of the invoice and payment constituted a contract of sale.
  • Set aside paragraph 4 of the order of 25 March 2010 permitting judgment for the Claimant with damages to be assessed.