(1934) 2 K.B. 394
(1934) 2 K.B. 394
(1934) 2 K.B. 394
[1934]
Appeal allowed.
the machine was fit for the purpose for which it was sold. The sellers 1934
pleaded (inter alia) that the contract expressly provided for the exclusion
of all implied warranties. The buyer replied that at the time when she -^ ESTRANGE
signed the order form she had not read it and knew nothing of its -p GRA
contents, and that the clause excluding warranties could not easily be
read owing to the smallness of the print. There was no evidence of
any misrepresentation by the sellers to the buyer as to the terms of the
contract:—
Held, by the Divisional Court (Scrutton and Maugham L.JJ.),
reversing on this point the judgment of the county court judge, that
as the buyer had signed the written contract, and had not been induced
to do so by any misrepresentation, she was bound by the terms of
the contract, and it was wholly immaterial that she had not read it
and did not know its contents ; and that the action failed and the sellers
were entitled to judgment.
Parker v. South Eastern Ry. Co. (1877) 2 C. P. D. 416, 421,
observations approved and applied.
Wallis, Son db Wells v. Pratt & Haynes [1911] A. C. 394 and Andrews
Brothers (Bournemouth), Ld. v. Singer & Co. [1934] 1 K. B. 17
referred to.
Richardson, Spence <Ss Co. v. Rowntree [1894] A. C. 217, and the other
railway ticket cases, distinguished.
1934 blanks on the form were then filled up with the particulars
L'ESTBANGE of the plaintiff's purchase and the form was signed by the
F. GBIUOOB, Plaintiff.
Li>. The document when completed was, so far as material,
in the following terms : " Sales Agreement. Date Feb. 7,
1933. To F. Graucob, Ltd., . . . . Please forward me as soon
as possible : One Six Column Junior Ham Automatic Machine
. . . . which I agree to purchase from you on the terms stated
below . . . . and to pay for the same in the following manner :
Instalments 81. 15s. Od. down. 18 payments of 31. 19s. lid."
Then after some other formal matter came certain clauses
in small print which, so far as material, were as follows :
" I agree to take delivery of the machine upon receiving
notice that it is ready for delivery, and to make the first
monthly payment 30 days after the date following that of
the posting of such notice and all subsequent payments
on the corresponding date of each succeeding month
If any payment shall not have been reoeived by you within
a fortnight after it has become due, all the remaining payments
shall fall due for immediate payment, and I agree to pay
interest on these remaining payments at the rate of ten per
cent, per annum as from the date of their so falling due.
In consideration of your undertaking to put in hand at once
work on this machine I agree not to countermand this
order This agreement contains all the terms and
conditions under which I agree to purchase the machine
specified above, and any express or implied condition,
statement, or warranty, statutory or otherwise not stated
herein is hereby excluded (sgd.) H. M. L'Estrange."
Then followed printed questions relating to the purchaser
and her business and premises with blank spaces for the
answers which. were filled in in manuscript appropriately to
this case.
On the same date the plaintiff handed to Mr. Page her
cheque for U. on account of the price of the machine.
On February 9, 1933, the defendants, having received the
above mentioned document, sent to the plaintiff an " order
confirmation " of that date signed by them ; a " guarantee "
2 K. B. KING'S BENCH DIVISION. 397
for eighteen months for the free fixing, maintenance, and 1934
insurance of the machine ; and an invoice. L'ESTRAXUK
On March 28, 1933, the machine was delivered a t the -j, r "•
plaintiff's premises, and on March 29 a mechanic of the *'"•
defendants came and installed it there, the plaintiff handing
to him on behalf of the defendants a further sum of
U. 15s. in respect of the price, and 6s. for packing, making
together 51. Is.
The machine did not work satisfactorily, and after a
few days it became jammed and unworkable. On April 7,
1933, the plaintiff wrote to the defendants that it had failed
and was still out of order, and a mechanic was sent to p u t it
right. On April 27, she again wrote t h a t it was far from
reliable ; and on April 28 a mechanic again attended to it,
and the plaintiff then signed a form t h a t it was working
to her satisfaction. On May 4, she wrote that the machine
had been of no use for a month, and asked for another
month in which to pay her first instalment, but added t h a t
since the last overhaul the machine had worked.satisfactorily.
On May 8, her patience being exhausted, she wrote t h a t
she had decided to forfeit her deposit, and requested the
defendants to remove the machine ; and on May 11 she
ceased to make use of the machine. The defendants, however,
declined to terminate the transaction.
On May 25, 1933, the plaintiff brought the present action
against the defendants in the county court, her claim being
for 91. Is., made up of the above sums of 4L and 5/. Is.,
as money received by the defendants to the use of the
plaintiff, having been paid by the plaintiff to the defendants
as part of the consideration for the delivery of the machine
pursuant to a contract in the terms of the above documents,
which consideration wholly failed by reason that the machine
was unfit for the purpose for which it was intended to be
used.
On June 9, 1933, the defendants delivered their defence
by which they denied t h a t the machine was delivered in a
condition unfit for the purpose for which it was intended ;
and further denied that the sum claimed by the plaintiff
398 KING'S BENCH DIVISION. [1934]
a form by which she was giving her consent to the purchase 1934
of a machine, that two days after the arrival of the machine
it ceased to work and that it could not afterwards be made F
to work continuously, and that on May 11 she ceased to
use the machine and decided to ask the defendants to take
it back and to forfeit her deposit. Mr. Pratt gave evidence
corroborating that of the plaintiff.
Evidence was given on behalf of the defendants by Mr.
Page and Mr. Berse. Mr. Page said that the interview on
February 7, 1933, lasted for over two hours, that he sat
near the plaintiff and read to her the whole of the brown
paper document including the small print, that the plaintiff
asked no question about the small print, that he pointed
out to her that the total price was not stated in figures in
the document, that the plaintiff signed the document at a
desk while he was sitting by her, and that he also read to
her the guarantee. Mr. Berse gave evidence substantially
to the same effect, and stated further that the blanks in
the brown document were filled up in accordance with the
answers given by the plaintiff.
On August 17, 1933, the county court judge gave judgment.
After stating the pleas and contentions of the parties and
the substance of the evidence on both sides he went on to
say that he found as a fact that when the defendants' two
canvassers left the plaintiff after the interview of February 7,
1933, she had no knowledge of the contents of the document
which she had signed except the amount of the purchase
price and the monthly instalment and the arrangement
about putting up the machine. He also found as a fact
that there must have been some defect in the mechanism
of the machine which rendered it so frequently unworkable
that it was not reasonably fit for the purpose for which it
was required. In his view there was an implied warranty
that the machine should be reasonably fit for that purpose,
and he found as a fact that that warranty was broken. On
behalf of the defendants it was contended that that warranty
was excluded by the conditions printed in small type in
the conditions of sale, and reliance was placed upon the rule
400 KING'S BENCH DIVISION. [1934]
1934 laid down in Parker v. South Eastern Ry. Co. (1) That rule,
L'ESTRANGB however, was subject to certain exceptions, and the question
F GKAUCOB w a s wnefcher this case came within it. The conditions here
LD. were printed in very small type, and when the issue was
whether the person signing the document knew of the
conditions it became material to ask whether the type was
of a reasonable size. In all such cases three questions must
be answered according to the directions of Lord Herschell L.C.
in Richardson, Spence & Go. v. Rowntree (2)—namely: (1.) Did
the plaintiff know that there was writing or printing on
the document ? (2.) Did she know that the writing or
printing contained conditions relating to the terms of the
contract ? (3.) Did the defendants do what was reasonably
sufficient to give the plaintiff notice of the conditions ?
In the present case he (the judge) found as facts that the
answer to the first of these questions was in the affirmative,
and the answers to the second and third of them in the
negative. On these grounds, therefore, he held that the
defendants were not entitled to rely upon the clause
which excluded implied warranties from the contract. He
estimated the damages to which the plaintiff was entitled
for breach of the implied warranty at 70Z. He gave judgment
for the plaintiff on the claim for 70/. ; and for the defendants
on the counterclaim for 71/.. 18s. 6d., the balance of the
price.
The defendants gave notice of appeal dated September 14,
1933, from so much of the judgment of the county court
judge as adjudged that the plaintiff should recover from
the defendants the sum of 70/. damages.
her claim being for 9Z. Is. as money received by the defendants 1934
to the use of the plaintiff as part of the consideration for
the delivery of an automatic slot machine pursuant to a ^
contract in writing dated February 7, 1933, which consideration T,n.
was alleged to have wholly failed by reason of the fact that scmtton I,.J.
the machine was delivered in a condition unfit for the pur-
pose for which it was intended. The only document which
corresponds to the contract there mentioned is a long
document on brown paper headed " Sales Agreement."
By their defence the defendants denied that the machine
was delivered in a condition unfit for the purpose intended,
and denied that the sum claimed was payable to the plaintiff;
and they counterclaimed for the balance of the price of the
machine. Just before the trial the plaintiff amended her
claim by adding a count for breach of an implied warranty
that the machine was reasonably fit for the purpose for
which it was sold ; though she still claimed only 91. Is. There
the pleadings stopped. At the trial, as the judge has stated
in his judgment, the plaintiff's claim was put in three
different ways : total failure of consideration; breach of
implied conditions going to the root of the contract ; and
breach of warranty. The defendants pleaded : no total
failure of consideration ; no implied conditions ; and that
no action would lie for breach of implied warranty, as the
agreement expressly provided for the exclusion of all implied
warranties. To this last defence the plaintiff contended
that she was induced to sign the contract by the mis-
representation that it was an order form, and that at the
time when she signed she knew nothing of the conditions.
The county court judge has given judgment for the plaintiff
for 101., though there is no claim by the plaintiff for that
sum ; and he has given judgment for the defendants on
the counterclaim for 111. 18s. 6d., the balance of the price.
As to the defence that no action would lie for breach of
implied warranty, the defendants relied upon the following
clause in the contract : " This agreement contains all the
terms and conditions under which I agree to purchase the
machine specified above and any express or implied condition,
402 KING'S BENCH DIVISION. [1934]
the plaintiff on the claim should be set aside and judgment 1934
entered for the defendants on the claim ; and the judgment
for the defendants on the counterclaim should stand. y
LD.
1934 to pick out certain clauses from it and ignore them as not
L'ESTBANGE binding on the plaintiff.
F GBAUOOB •"•n a c a s e °^ ^ s n a ^ u r e ^ i s possible that the document
ljD- signed by a contracting party may not be the contract,
Maugham L.J. but merely a memorandum in writing of a preceding verbal
contract between the parties, and if in this case it appeared
that the document in question was only a memorandum
of a previous contract which had not contained the clause
excluding all conditions and warranties, the plaintiff might
have relied upon the case of Roe v. Naylor (No. 2) (1) and
contended successfully that, as the clause was not a part
of the contract, she was not bound by it. In my judgment,
however, such a view as that is excluded here, because on
the facts there was no preceding verbal agreement between
the parties.
I deal with this case on the footing that when the order
confirmation was signed by the defendants confirming the
order form which had been signed by the plaintiff, there
was then a signed contract in writing between the parties.
If that is so, then, subject to certain contingencies, there
is no doubt that it was wholly immaterial whether the
plaintiff read the small print or not. There can be no dispute
as to the soundness in law of the statement of Mellish L.J.
in Parker v. South Eastern Ry. Co. (2), which has been read by
my learned brother, to the effect that where a party has
signed a written agreement it is immaterial to the question
of his liability under it that he has not read it and does not
know its contents. That is true in any case in which the
agreement is held to be an agreement in writing.
There are, however, two possibilities to be kept in view.
The first is that it might be proved that the document,
though signed by the plaintiff, was signed in circumstances
which made it not her act. That is known as the case of
Non est factum. I do not think it is necessary to add
anything to what Scrutton L.J. has already said about that.
The written document admittedly related to the purchase
of the machine by the plaintiff. Even if she was told that
(!) (1919) 87 L. J. (K. B.) 958. (2) 2 C. P. D. 416, 421.
2 K. B. KING'S BENCH DIVISION. 407
it was an order form, she could not be heard to say that it 1934
did not affect her because she did not know its contents. L'ESTRANOB
Another possibility is that the plaintiff might have been F Gl ^ n00B
LD
induced to sign the document by misrepresentation. She -
contended that she was so induced to sign the document Maugham L.J.
inasmuch as (i.) she was assured that it was an order form,
(ii.) that at the time when she signed it she knew nothing of
the conditions which it contained. The second of these
contentions is unavailing by reason of the fact that the
document was in writing signed by the plaintiff. As to the
first contention it is true that the document was an order
form. But further, if the statement that it was an order form
could be treated as a representation that it contained no
clause expressly excluding all conditions and warranties,
the answer would be that there is no evidence to
prove that that statement was made by or on behalf of the
defendants.
In this case it is, in my view, an irrelevant circumstance
that the plaintiff did not read, or hear of, the parts of the
sales document which are in small print, and that document
should have effect according to its terms. I may add, how-
ever, that I could wish that the contract had been in a
simpler and more usual form. It is unfortunate that the
important clause excluding conditions and warranties is in
such small print. I also think that the order confirmation
form should have contained an express statement to the
effect that it was exclusive of all conditions and warranties.
I agree that the appeal should be allowed.