OSCAR CHESS V. WILLIAMS [1957] 1 W.L.R.
370
FACTS
The defendants sold a Morris car to the claimants, who were motor traders,
for £290. The defendants provided a copy of the vehicles first registration
indicating that the car was first registered in 1948. Some eight months later
the claimants became aware that the car had actually been registered in 1939
and was therefore only worth £175. The defendant honestly believed that the
car was a 1948 model. The claimants claimed damages for breach of
contract.
ISSUES
The issue in this context was whether the statements given by the defendants
constituted a warranty as to the age of the car.
DECISION
The Court of Appeal found that the defendants’ comments did not constitute
a warranty. More importantly, the court set out a number of considerations
that should be made when assessing whether a statement is a warranty. (1)
Where an assumption is fundamental to a contract, it does not mean that it is
a term of the contract. (2) The term warranty means a binding promise as
well as a subsidiary, non-essential, term of a contract. (3) A warranty must
be distinguished from an innocent misrepresentation. (4) Whether a warranty
is intended must, judged objectively, be based on the parties’ words and
behaviour. (5) Where one party makes a statement, which should be within
his own knowledge, but not the knowledge of the other, it is easy to infer a
warranty. If the party states that it is not within his knowledge and is
information passed from another, a warranty is less easily inferred. (6) An
oral representation repeated in writing suggests a warranty, but the issue is
not conclusive. Neither is the fact that it is not stated in writing.
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