Stobo Ltd v Morrisons (Gowns) Ltd [1949] ScotCS CSIH_1 (28 January 1949)

Stobo Ltd v Morrisons (Gowns) Ltd [1949] ScotCS CSIH_1 (28 January 1949)

The Court held that the inclusion of the words 'subject to contract' in the defenders' acceptance letter indicated that no final assent or concluded agreement had been reached between the parties. The correspondence did not amount to a binding contract, and thus the pursuers' case for specific implement failed.

Citation
[1949] ScotCS CSIH_1
Parties
Pursuer: Stobo Limited; Defender: Morrisons (Gowns) Limited
Jurisdiction
Scotland
Judgment Date
28 January 1949
Procedural Posture
Civil Appeal / Appeal From Sheriff Substitute's Interlocutor
Outcome
appeal allowed; action dismissed
Legal Topics
Formation of Contract, Conditional Acceptance, Missives of Sale, Specific Implement, Rei Interventus
Contract Law Property Law Formation of Contract Conditional Acceptance Missives of Sale Specific Implement Rei Interventus

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Parties

Stobo Limited

Pursuer

Morrisons (Gowns) Limited

Defender

Procedural Posture

Civil Appeal / Appeal From Sheriff Substitute's Interlocutor

Legal Issues

  1. 1 Whether correspondence between parties constituted a concluded contract for the sale of property
  2. 2 Effect of the phrase 'subject to contract' in Scots law
  3. 3 Relevance of rei interventus in the absence of a concluded contract

Ratio Decidendi

The Court held that the inclusion of the words 'subject to contract' in the defenders' acceptance letter indicated that no final assent or concluded agreement had been reached between the parties. The correspondence did not amount to a binding contract, and thus the pursuers' case for specific implement failed.

Court Disposition

appeal allowed; action dismissed

Orders

  • Interlocutor of the Sheriff-substitute recalled
  • Defenders assoilzied (absolved from the conclusions of the action)