WN Hillas & Co Ltd v Arcos Ltd | |
---|---|
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.