Gardner v Coutts & Co

Facts

A seller promised the buyer an option over adjoining land if he ever wished to sell it. He later gave the land to his sister, without offering it.

Issue

Did the promise cover a gift as well as a sale?

Held

Yes. Cross J implied that term. The seller would have said 'of course' if asked.

Principle

A term is implied where it is obvious and necessary to give the promise the business effect both sides must have meant.

Why it matters

It is the officious bystander case.

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