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Hillas & Co Ltd v Arcos Ltd

WN Hillas & Co Ltd v Arcos Ltd
Timber DonnellyMills2005 SeanMcClean.jpg
Court House of Lords
Citation(s) [1932] UKHL 2, (1932) 147 LT 503 (HL)
Transcript(s) Full text of decision
Case history
Prior action(s) (1932) 40 Lloyd’s Rep (CA)
Court membership
Judge(s) sitting

Lord Tomlin, Lord Warrigton of Clyffe, Lord Thankerton, Lord Macmillan,

Lord Wright

Lord Tomlin, Lord Warrigton of Clyffe, Lord Thankerton, Lord Macmillan,

WN Hillas & Co Ltd v Arcos Ltd [1932] UKHL 2 is a landmark House of Lords case on English contract law where the court first began to move away from a strict, literal interpretation of the terms of a contract, and instead interpreted it with a view to preserve the bargain. The Court ruled that judges may imply terms into a contract based on the past dealings of the parties rather than void the agreement.

Lord Wright stated in this case that people who give good consideration can bind themselves to a duty to negotiate in good faith, though this was controversially rejected in the later House of Lords case, Walford v Miles.


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