contract does not come into existence at all on the basis that there is an incomplete agreement or it may serve to invalidate a particular term, leaving the rest of the contract intact. In Scammell & Nephew Ltd v Ouston, the relevant term in a contract for the supply of a lorry stated that the price was payable ‘on hire-purchase terms’ over two years. However the words ‘on hire-purchase terms’ is capable of any number of interpretations, given the wide variety of hire-purchase terms which may be applicable to a given contract. Accordingly, the contract was considered to be so vague as to be unenforceable: Scammell & Nephew Ltd v Ouston [1941] 1 All ER 14, HL, p 21

doi:10.4324/9781843141518-106

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contract does not come into existence at all on the basis that there is an incomplete agreement or it may serve to invalidate a particular term, leaving the rest of the contract intact. In Scammell & Nephew Ltd v Ouston, the relevant term in a contract for the supply of a lorry stated that the price was payable ‘on hire-purchase terms’ over two years. However the words ‘on hire-purchase terms’ is capable of any number of interpretations, given the wide variety of hire-purchase terms which may be applicable to a given contract. Accordingly, the contract was considered to be so vague as to be unenforceable: Scammell & Nephew Ltd v Ouston [1941] 1 All ER 14, HL, p 21

ABSTRACT

Scammell & Nephew Ltd v Ouston [1941] 1 All ER 14, HL, p 21 Lord Wright: At the oral conversations, the respondents had clearly insisted that a hire-purchase agreement was essential. No terms, however, of such an agreement had been settled, nor, indeed, had it been discussed with whom the agreement would be made. HC Ouston, when asked in cross-examination, ‘The hire-purchase agreement, of course, you did not expect, I suppose, to be with Messrs Scammells, did you?’ replied: ‘I knew very well it would not have been. To the best of my knowledge, anyhow, I thought it would be, as it turned out to be, with United Dominions.’