Hyde V. Wrench

Contract Law Case:Hyde V. Wrench

Presented by:Group 6 - Ananya Chengta - Anshula Sonkusale - Chandrika Gadiraju - Forum Chandarana - Mini Kaintura - Rishal Gowda

Index

1. Introduction

2. Facts

3. Issues Raised

4. Critical Analysis

5. Arguements

6. Court's Stance

7. Conclusion

6. References

Introduction

A proposal is one of the essentials of a valid contract.

• Indian Contract Law, 1872
• English Law/ Common Law

A contract has 4 main essentials that need to be fulfilled without which it won't be recognized as a contract. These essentials are:

• Offer
• Acceptance
• Consideration
• Legal enforceability

The Essentials of a Valid Offer Constitue:

1. An offer must be made with an intention to create legal obligationsFamous Case- Balfour V. Balfour 2. An offer may be express or impliedFamous Case- Uptron Rural District Council V. Powell 3. The terms of the offer must be definite and not vague 4. An offer can’t prescribe silence as a mode of acceptance Famous Case- Felthouse V. Bindley

The Essentials of a Valid Offer Constitue:

5. A general offer need not be specifically acceptedFamous Case- Carlill V. Carbolic Smoke Ball Co. 6. An offer differs from an invitation to offer Famous Case- Pharmaceutical Society of Great Britain V. Boots Cash Chemists (Southern) Ltd. 7. Offer must be communicated Famous Case- Lalman Shukla V. Gauri Dutt

The types of Offers:

1. General Offer Famous Case- Harbhajan Lal V. Harcharan Lal2. Cross Offer3. Specific Offer Famous Case- Boulton V. Jones 4. Standing Offer Famous Case- Ramsgate Victoria Hotel Company V. Montefeire 5. Counter Offer Famous Case- Hyde V. Wrench

Facts:

• Wrench offered to sell a farm to Hyde for £1,000.
• Hyde in reply offered £950 which Wrench refused.
• Hyde then sought to accept the original offer of £1,000.
• Wrench refused to sell his land to Hyde, which led to Hyde sue him.

"I beg to acknowledge the receipt of your letter of the 27th instant, informing me that you are not disposed to accept the sum of £950 for your farm at Luddenham. This being the case, I at once agree to the terms on which you offered the farm, viz., £1000 throu gh your tenant Mr. Kent by your letter of the 6th instant. I shall be obliged by your instructing your solicitor to communicate with me without delay, as to the title, for the reason which I mentioned to you."

"I have written to my tenant for an answer to certain enquiries and, the instant I receive his reply, will communicate with you and endeavor to conclude the prospective purchase of my farm, I assure you I am not treating with any other person about said purchase."

Wrench

Hyde

Issues Raised:

1. Is the Wrench obligated to perform the opening proposal, or does the initial offer become invalid in the event of a counteroffer?
2. Is it likely that perhaps Wrench, has breached the contract by refusing to sell the form to Hyde?
3. Is it plausible that Hyde and Wrench had a legitimate contract?

Critical Analysis

• Section 14- Presence of consent to form a contract (Offer+ Acceptance(consent) = Contract)
• Section 2j and 2g- Enforceability of the contract in the court of law
• Section 29- Voidability of the contract
• Section 65 and 75- Due to general damage
• Section 56- Discharge of contract- offer to tender or perform
• Section 124- Contract of indemnity

Arguements

Wrench's Arguement

Hyde's Arguement

As made clear by Wrench that £1000 would be the final offer, and if rejected, another application would be considered.

Hyde brought an action for specific performance claiming that Mr. Wrench refused to sell the farm, this was a breach of contract. As per Hyde, the offer was not withdrawn before the acceptance, hence, the contract has been concluded.

Court's Stance

• Counter offer destroys the original offer
• Ruling in the favour of the Wrench

Judge: Lord Langdale

"Under the circumstances in this bill, I think there exists no valid binding contract between the parties for the purchase of the property. The Defendant offered to sell it for £1000 and if that had been at once unconditionally accepted, there would undoubtedly have been a perfect binding contract; instead of that, the Plaintiff made an offer of his own, to purchase the property for £950 and he thereby rejected the offer previously made by the Defendant. I think that it was not afterwards competent for him to revive the proposal of the Defendant, by tendering an acceptance of it; and that, therefore, there exists no obligation of any sort between the parties; the demurrer must be allowed."

Conclusion

The case primarily teaches us that although negotiations can take place, a contract only becomes a valid contract in the eyes of the law when the offer is accepted by both the parties, and, upon refusal of an offer, the losing party shall be duly compensated for all the damages and losses caused, in this case by Hyde, the plaintiff to Wrench, the defendant.

References

• https://judicateme.com/wp-content/uploads/2020/06/Hyde-v.-wrench.pdf
• Hyde v Wrench (e-lawresources.co.uk)
• Hyde v Wrench - 1840 (lawteacher.net)
• Proposal - Indian Contract Act, 1872 Article - Legal Articles in India (legalservicesindia.com)
• Case Analysis: Hyde v Wrench (1840) 49 ER 132. - LAWOGS
• Hyde v. Wrench (1840) | Case Studies (quotev.com)