ABSTRACT
O wished to acquire a new pantechnicon for use in his furniture-removing business. Following discussions with S in which it was assumed that hirepurchase terms would be available and in which a trade-in price was fixed for O’s old vehicle, O sent in a written order saying: ‘This order is given on the understanding that the balance of the purchase price can be had on hirepurchase terms over a period of two years’. S completed the new van and arrangements were made with a finance company to give hire-purchase, though the terms were not agreed. Then it seems that S changed their mind about taking O’s old van in part-exchange, as they were not satisfied with its condition, and they asked him to sell it privately. O sued for breach of contract. Held by the House of Lords: S’s defence, to the effect that there was no contract until the HP terms had been agreed, succeeded. There was evidence that HP terms varied widely and no evidence to show which, if any, the parties favoured.
