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Gibson v Manchester City Council
From Wikipedia, the free encyclopedia
Gi bson v Manchest er Ci t y Counci l [1979] UKHL 6
(http://www.bailii.org/uk/cases/UKHL/1979/6.html) is an English contract law case in which the House of
Lords strongly reasserted that agreement only exists when there is a clear offer mirrored by a clear acceptance. Contents
1 Facts
2 Judgment
2.1 Court of Appeal
2.2 House of Lords
3 See also
4 Notes
Gibson v Manchester CC
Court
Hous e of Lords
Citation(s ) [1979] UKHL 6
(http://w w w . bailii. org/uk/c as es /UKHL/1979/6. html)
, [1979] 1 WLR 294, [1979] 1 All ER 972
Cas e his tory
Prior
action(s )
[1978] 1 WLR 520
Cas e opinions
F ac t s
Lord Diploc k
Ke ywords
Manchester City Council was being run by the
Agreement, offer, ac c eptanc e, invitation to treat
Conservative Party, which was running a policy of selling council houses to the occupants. Mr Gibson applied for details of his house price and mortgage terms on a form of the council. In February 1971, the treasurer replied, The corporation may be prepared to sell the house to you at the purchase price of £2,725 less 20% =
£2,180 (freehold)… This letter should not be regarded as a firm offer of a mortgage. If you would like to make formal application to buy your Council house please complete the enclosed application form and return it to me as soon as possible.
In March 1971, Mr Gibson completed the application form, except for the purchase price and returned it to the council.
In May, the Labour party came back to power and halted sales. Mr Gibson was told that he could not complete the purchase. So Mr Gibson sued the council, arguing that a binding contract had already come into force.
Judgment
Court of Appeal
Lord Denning MR held that there was a contract, because one should "look at the correspondence as a