English Contract Law General Principles

a.In writing cases

In Cundy v Lindsay(321), an individual named Alfred Blenkarn wrote to the claimant (Lindsay), a linen manufacturer, to place an order, including some “cambric handkerchiefs”. He sent his letters from 37 Wood Street, London, where he had hired a room as a base for his operation, giving the impression that he had a warehouse at the address. His letters were signed to suggest that he was writing on behalf of “Blenkiron & Co”. This was done because there was a reputable firm of “W Blenkiron & Co” which also carried on business at Wood Street, who were known to the claimant, but they had their base at 123 Wood Street, not 37 Wood Street. The claimants sent the goods ordered on credit to “Messrs Blenkiron & Co., 37 Wood Street, Cheapside”. The goods were received and swiftly sold by Alfred Blenkarn to Cundy, the defendant. Cundy was not of the fraud and bought the goods in good faith, as a bona fide third-party purchaser. The claimant brought proceedings against the defendant to recover possession of the goods, and they succeeded. The House of Lords held that there was never a contract between the claimant and the fraudster Alfred Blenkarn, the contract being void for mistake, so that Alfred Blenkarn never gained title to the goods and could not therefore pass on title to the defendant. The defendant was ordered to pay to the claimant reflecting the value of the handkerchiefs.

A somewhat similar fraud took place in King’s Norton Metal Co v Edridge(322),…