bore advertising material for their chocolate and were made available to the public at a price of 1s6d plus three wrappers from Nestlé chocolate bars. The wrappers, when received, were thrown away. It was held that there had been a sale by retail, but that a sale by retail, for the purposes of s 8 of the Copyright Act 1956, required a consideration which consisted only of money. In this case, part of the consideration was to be found in the acquisition and delivery of the chocolate bar wrappers. Accordingly, Nestlé’s operations were not covered by s 8, with the result that there was a breach of copyright: Chappell and Co Ltd v Nestlé Co Ltd [1960] AC 87, HL, p 108

doi:10.4324/9781843141518-57

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bore advertising material for their chocolate and were made available to the public at a price of 1s6d plus three wrappers from Nestlé chocolate bars. The wrappers, when received, were thrown away. It was held that there had been a sale by retail, but that a sale by retail, for the purposes of s 8 of the Copyright Act 1956, required a consideration which consisted only of money. In this case, part of the consideration was to be found in the acquisition and delivery of the chocolate bar wrappers. Accordingly, Nestlé’s operations were not covered by s 8, with the result that there was a breach of copyright: Chappell and Co Ltd v Nestlé Co Ltd [1960] AC 87, HL, p 108

ABSTRACT

Chappell and Co Ltd v Nestlé Co Ltd [1960] AC 87, HL, p 108 Lord Reid: To determine the nature of the contract one must find the intention of the parties as shown by what they said and did. The Nestlé Co’s intention can hardly be in doubt. They were not setting out to trade in gramophone records. They were using these records to increase their sales of chocolate. Their offer was addressed to everyone. It might be accepted by a person who was already a regular buyer of their chocolate; but, much more important to them, it might be accepted by people who might become regular buyers of their chocolate if they could be induced to try it and found they liked it. The inducement was something calculated to look like a bargain, a record at a very cheap price. It is in evidence that the ordinary price for a dance record is 6s 6d. It is true that the ordinary record gives much longer playing time than the Nestlé records and it may have other advantages. But the reader of the Nestlé offer was not in a position to know that.