On the other hand, as the defendant had taken it upon themselves to employ experts for the purpose of providing an estimate of sales, they owed a duty of care to the plaintiff to ensure that this was done on the basis of accurate information. The Court of Appeal held that the contract could not be voided for misrepresentation as the defendants presented the inflated figure as an estimate rather than as a hard fact. The value of the rent on the agreement had been calculated based on this inflated figure. Add to My Bookmarks Export citation. Copyright © 2003 - 2020 - LawTeacher is a trading name of All Answers Ltd, a company registered in England and Wales. Esso’s experts had estimated that the petrol station would sell 200,000 gallons of petrol. Esso Petroleum Co. Ltd v Mardon [1976] QB 801. Shaw L.J. This estimate was based on figures which were prepared prior to planning application. Have you read this? In either case he is under one and the same duty to use reasonable care: see Cassidy v Ministry of Health. 1. T&F logo. Esso Petroleum Co. Ltd v Mardon Date [1976] Citation QB 801 Legislation. Add to My Bookmarks Export citation. If the forecast turned out to be an unsound forecast such as no person of skill or experience should have made, there is a breach of warranty. Lord Denning MR held there was a contractual warranty and damages were not limited. Facts. When they purchased it they estimated that it could sell 200,000 gallons of petrol a year. Any opinions, findings, conclusions, or recommendations expressed in this material are those of the authors and do not reflect the views of LawTeacher.net. They knew the traffic in the town. Take a look at some weird laws from around the world! This considerably lowered the amount that could be sold, but no change was made to the estimate. The damages awarded were for the loss suffered, not the loss of a bargain. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Skip to main content. Now I would quite agree… it was not a warranty - in this sense - that it did not guarantee that the throughput would be 200,000 gallons. This is an appeal from the decision of the Southampton Employment Tribunal. Mr Mardon bought the petrol station and business did not go well. This item appears on. Any information contained in this case summary does not constitute legal advice and should be treated as educational content only. It was the yardstick… by which they measured the worth of a filling station. Halsey lives down the road from an Esso Petroleum oil factory. You can rely upon it as being a sound forecast of what the service station should do. He is only. Esso's experts had approximated that the station would be able sell 200,000 petrol gallons. They knew the throughput of comparable stations. They leased it to Mardon, and assured him contrary to his skepticism that the site could sell 200,000 gallons a year. Esso Petroleum Co Ltd v Mardon [1976] EWCA Civ 4 is an English contract law case, concerning misrepresentation.It holds that the divide between a statement of opinion and fact becomes more factual if one holds himself out as having expert knowledge. where a vendor's description of the tenant of the property sold as "a most desirable tenant" was called in question. Previous: CHAUDHRY v. PRABHAKAR AND ANOTHER. The plaintiff was therefore able to recover the losses which he had suffered as a result of the defendant’s negligent misstatement. However, building regulations made them put the pumps on the back of the property. The question for the court was whether these coins were 'produced in quantity for general resale' if so they would be subject to tax and Esso would be liable to pay £200,000. Lawson J held there was no contractual warranty and damages for negligent misstatement were limited to losses before 1964. This information is only available to paying isurv subscribers. Smith V Eric Bush (1990) Caparo V Dickman (1990) James McNaughton V Hicks Anderson (1991) ESSO PETROLEUM CO. LTD. v. MARDON. Esso Petroleum Company Ltd v Mardon: CA 6 Feb 1976. It was argued that when a contract resulted, there was no tort liability, relying on Clark v Kirby-Smith,[1] when Plowman J said a negligent solicitor was not liable in tort, only contract, based on Sir Wilfrid Greene MR in Groom v Crocker. He went on and said, if there had been no warranty (which there was) there would still be negligent misrepresentation liability in tort. From 1964, Mr Mardon negotiated a lower rent with Esso but was still losing money. Statements had been made by employees of Esso in the course of pre-contractual negotiations with Mr Mardon, the prospective tenant of a petrol station. List: 22799 - Contract Law Section: Misrepresentation Next: Spice Girls Ltd v Aprilia World Service BV Previous: Misrepresentation Act 1967. (1977). Keywords Contract administration Summary. They knew the facts. In the one case it is by reason of a term implied by law. Free resources to assist you with your legal studies! Esso Petroleum Co ltd v Mardon [1976] QB 801. 14th Jun 2019 11, No. It is no concern of Esso where it came from, c.f. Mr Mardon is not to be compensated here for ‘loss of a bargain’. Dennis v. London Passenger Transport Board (1948) 1 All England Reports 319. As a result, it was impossible for the plaintiff to operate the petrol station profitably. Intention to create legal relations and consideration for a contract of sale in the formation of contracts. Type Article Volume 1976 Page start 103 Page end 108 Is part of Journal Title Law Reports, Queens' Bench. Facts. 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