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] QB 801 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 herself out has having expert knowledge. Smith V Eric Bush (1990) Caparo V Dickman (1990) James McNaughton V Hicks Anderson (1991) Have you read this? Halsey v Esso Petroleum [1961] 2 All ER 145 < Back. They had much experience and expertise at their disposal. Lord Denning MR held there was a contractual warranty and damages were not limited. 2, pp. Add to My Bookmarks Export citation. The estimate provided by Esso did not take this into account despite their knowledge of the decision. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. This considerably lowered the amount that could be sold, but no change was made to the estimate. 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. Esso Petroleum Co ltd v Mardon [1976] QB 801. if a man, who has or professes to have special knowledge or skill, makes a representation by virtue thereof to another… with the intention of inducing him to enter into a contract with him, he is under a duty to use reasonable care to see that the representation is correct, and that the advice, information or opinion is reliable.' Esso Petroleum Ltd v Commissioners of Customs and Excise [1976] 1 WLR. This estimate was based on figures which were prepared prior to planning application. Intention to create legal relations and consideration for a contract of sale in the formation of contracts. Type Proceedings Date 1976 Issue QB 801. 1966 E No. Disclaimer: This work was produced by one of our expert legal writers, as a learning aid to help law students with their studies. (Held that E warranted the estimate as he had relevant information and necessary experience whilst M does not.) Esso Petroleum v Mardon. Facts. The rent is calculated on that footing. Facts. During the course of the negotiation of the agreement, ‘expert’ advisers employed by the defendant had provided an estimate of the sales which the petrol station could expect which was based on inaccurate information and consequently was significantly … The value of the rent on the agreement had been calculated based on this inflated figure. The plaintiff, Mr Mardon, entered into a tenancy agreement with the defendant, Esso Petroleum, in respect of a petrol station owned by the latter. The damages awarded were for the loss suffered, not the loss of a bargain. Type Article Volume 1976 Page start 103 Page end 108 Is part of Journal Title Law Reports, Queens' Bench. Company Registration No: 4964706. This estimate was based on figures which were prepared prior to planning application. It holds that the divide between a statement of opinion and fact becomes more factual if one holds himself out as having expert knowledge. We also have a number of sample law papers, each written to a specific grade, to illustrate the work delivered by our academic services. When they purchased it they estimated that it could sell 200,000 gallons of petrol a year. 2971 IN THE SUPREME COURT OF JUDICATURECOURT OF APPEALON APPEAL FROM THE HIGH COURT OF JUSTICEQUEEN'S BENCH DIVISION(MR. Mr Mardon is not to be compensated here for ‘loss of a bargain’. Esso Petroleum v Customs & Excise Esso ran a promotion whereby any person purchasing four gallons of petrol would get a free coin from their World Cup Coins Collection. Esso Petroleum Co Ltd v Mardon (M lease petrol station from E, E estimated that sell 200,000 gallons but in fact less.) He went on and said, if there had been no warranty (which there was) there would still be negligent misrepresentation liability in tort. Mr Mardon entered a tenancy agreement with Esso Petroleum in respect of a new Petrol station. Add to My Bookmarks Export citation. 1. BUT, they overlooked the fact that the petrol station would not have direct access from main road. Keywords Contract administration Summary. Esso Petroleum Co. Ltd v Mardon [1976] English Contract Law ‘Gas’ by Edward Hopper. In-house law team. ESSO PETROLEUM CO. LTD. v. MARDON. Esso then brought an action for possession against Mr Mardon, who counterclaimed for damages of Esso's breach of warranty or negligence under Hedley Byrne. Mr Mardon bought the petrol station and business did not go well. Esso Petroleum Co Ltd v Mardon [1976] QB 801. Case Summary Dennis v. London Passenger Transport Board (1948) 1 All England Reports 319. Lawson J held there was no contractual warranty and damages for negligent misstatement were limited to losses before 1964. Esso Petroleum Co Ltd v Mardon (1976) 2 BLR 82 Coram: Court of Appeal, Civil Division Lord Denning MR, Ormrod LJ, Shaw Li Mr Mardon was buying a petrol station franchised by Esso Petroleum Co Ltd. Esso told him they had estimated that the throughput of a petrol station in Eastbank Street, Southport, would be 200,000 gallons a year; however, the local council had made a decision regarding planning permission which meant that there would be no direct access from the main street and therefore fewer customers. If Mr. Mardon had not been induced to enter into the contract, it is fair to assume that he would have found an alternative business in which to … You can rely upon it as being a sound forecast of what the service station should do. From 1964, Mr Mardon negotiated a lower rent with Esso but was still losing money. Esso Petroleum Co Ltd v Harper’s Garage (Stourport) Ltd: HL 1968 Agreement in Restraint of Trade Unenforceable The defendant ran two garages under solus agreements with the plaintiffs who complained when the defendants began to purchase petrol from cheaper alternative sources. However, it did not sell anywhere near this amount. 100-114. Esso realized this and reneg… Esso Petroleum Co. Ltd. v Mardon: When is a misstatement not a misrepresentation? In the one case it is by reason of a term implied by law. Hedley Byrne & Co Ltd v Heller & Partners Ltd, Car and Universal Finance Co Ltd v Caldwell, Lister v Romford Ice and Cold Storage Co Ltd, Accusations of ExxonMobil human rights violations in Indonesia, Exxon Corp. v Exxon Insurance Consultants International Ltd. People of the State of New York v. Exxon Mobil Corp. https://en.wikipedia.org/w/index.php?title=Esso_Petroleum_Co_Ltd_v_Mardon&oldid=974480870, Court of Appeal (England and Wales) cases, Creative Commons Attribution-ShareAlike License, This page was last edited on 23 August 2020, at 09:14. 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. As a result, it was impossible for the plaintiff to operate the petrol station profitably. Esso Petroleum Company Ltd. v Mardon [Buy ICLR report: [1976] QB 801] JISCBAILII_CONTRACT Neutral Citation Number: Case No. Esso’s experts had estimated that the petrol station would sell 200,000 gallons of petrol. It is just as if Esso said to Mr. Mardon: Our forecast of throughput is 200,000 gallons. This item appears on. Esso Petroleum Company Ltd v Mardon [1976] QB 1, CA ... Esso sued Mardon for money due but Mardon claimed compensation from Esso for misrepresentation.It was held by Lord Denning that Esso's representative had special knowledge and skill which induced Mardon to take the tenancy. Tag: Esso Petroleum Co. Ltd v Mardon [1976] Esso Petroleum Co. Ltd v Mardon [1976] English Contract Law ‘Gas’ by Edward Hopper. Skip to main content. They knew the facts. Misrepresentation Act 1967. 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. 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. It is no concern of Esso where it came from, c.f. During the course of the negotiation of the agreement, ‘expert’ advisers employed by the defendant had provided an estimate of the sales which the petrol station could expect which was based on inaccurate information and consequently was significantly inflated. However, building regulations made them put the pumps on the back of the property. They were in a much better position than Mr Mardon to make a forecast. Facts: Mardon was buying a petrol station from Esso. Esso bought a new site for a service station. It seems to me that if such a person makes a forecast, intending that the other should act upon it - and he does act upon it, it can well be interpreted as a warranty that the forecast is sound and reliable in the sense that they made it with reasonable care and skill. 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. Esso did profess special knowledge and had it. T&F logo. As a result of this estimate, the plaintiff was persuaded to enter into a tenancy agreement with Esso for a period of three years. The plaintiff, Mr Mardon, entered into a tenancy agreement with the defendant, Esso Petroleum, in respect of a petrol station owned by the latter. They knew the throughput of comparable stations. 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. Esso Petroleum V Mardon (1976) Spring V Guardian Assurance Plc (1995) Mutual Life & Citizens Assurance Ltd V Evatt (1971) Social Context . Mr Mardon appealed. Registered Data Controller No: Z1821391. The Law Teacher: Vol. Looking for a flexible role? Esso Petroleum v Mardon [1967] Facts Prior to the granting of planning permission, Esso estimated the future sales of a garage, which caused Mardon to enter into a tenancy In Esso Petroleum Ltd v Mardon,13 an experienced representative employed by Esso estimated that the likely throughput of petrol on a garage site would reach 200,000 gallons by the third year of operation. Esso Petroleum v. Mardon (C.A.) Lord Denning MR distinguished Bisset v Wilkinson because each party was 'equally able to form an opinion.' Do you have a 2:1 degree or higher? Free resources to assist you with your legal studies! [2] But these were old and the tort duty 'is comparable to the duty of reasonable care which is owed by a master to his servant, or vice versa'.[3]. Mardon bought station, but sales were lower than expected In the other, it is by reason of a duty imposed by law. Esso's experts had estimated that the petrol station would sell 200,000 gallons of petrol. 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. To export a reference to this article please select a referencing stye below: Our academic writing and marking services can help you! He is only. The plaintiff was therefore able to recover the losses which he had suffered as a result of the defendant’s negligent misstatement. Lord Denning MR held there was a contractual warranty and damages were not limited. Halsey claimed that the factory’s emissions produced an offensive smell, and that the acidic residue from the factory’s smoke damaged his linen and car’s paint. They knew the traffic in the town. He was given no bargain that the throughput would amount to 200,000 gallons a year. *You can also browse our support articles here >. For a breach of that duty, he is liable in damages; and those damages should be, and are, the same, whether he is sued in contract or in tort. Previous: CHAUDHRY v. PRABHAKAR AND ANOTHER. Shaw L.J. 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. Mr Mardon entered a tenancy agreement with Esso Petroleum in respect of a new Petrol station. Copyright © 2003 - 2020 - LawTeacher is a trading name of All Answers Ltd, a company registered in England and Wales. Reference this In Esso Petroleum v Mardon [1976] QB 801 Court of Appeal, Mr. Mardon came into an agreement of tenancy with Esso Petroleum subject to a new Petrol station. Esso Petroleum Co. 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