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Foley v Classique Coaches Ltd (1934) Court of Appeal
The plaintiff possessed a parcel of land. He operated gas stations on a section of the land. He transferred the remaining portion of the land to the defendants for their coach running enterprise. The land sale contract was contingent upon a concurrent arrangement in which the defendants committed to purchasing all petrol for their business from the plaintiff. The contract contained an arbitration provision. The parties operated under the agreement for more than three years. The accused subsequently sought to procure petrol from another source and repudiated the arrangement. The defendants contended that the agreement, lacking a specified petrol price, was excessively ambiguous to be enforceable. The arrangement was deemed enforceable. An implied term existed that the petrol would be provided at a fair price and of satisfactory quality; if the parties could not reach an agreement on a fair price, arbitration would determine it. The parties believed they were establishing a binding contract, having engaged in transactions under it for three years, and it was associated with the property sale deal.
The plaintiff possessed a parcel of land. He operated gas stations on a section of the land. He transferred the remaining portion of the land to the defendants for their coach running enterprise. The land sale contract was contingent upon a concurrent arrangement in which the defendants committed to purchasing all petrol for their business from the plaintiff. The contract contained an arbitration provision. The parties operated under the agreement for more than three years. The accused subsequently sought to procure petrol from another source and repudiated the arrangement. The defendants contended that the agreement, lacking a specified petrol price, was excessively ambiguous to be enforceable. The arrangement was deemed enforceable. An implied term existed that the petrol would be provided at a fair price and of satisfactory quality; if the parties could not reach an agreement on a fair price, arbitration would determine it. The parties believed they were establishing a binding contract, having engaged in transactions under it for three years, and it was associated with the property sale deal.
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