Henry Kendall Ltd v William Lillico Ltd [1969] 2 AC 31 is an
English contract lawEnglish contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
case concerning incorporation of contract terms through a course of dealings.
Facts
Feeding stuff was sold by merchants to a farmer. It was defective. The merchants brought in suppliers, and they in turn brought in their suppliers, a long chain. (hence also
Hardwick Game v Suffolk Agricultural Poultry Producers Association). Purchases three or four times a month had happened for three or so years, and each time, a sold note followed, which said the buyer took responsibility for any latent defects. The buyers had never read the note.
Judgment
The House of Lords held that a reasonable seller in the circumstances would have had good cause to assume that the buyer agreed to the term, hence rejecting Lord Devlin’s
McCutcheon dicta that previous dealings needed to prove actual knowledge.
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