{"id":13857,"date":"2023-07-05T18:56:12","date_gmt":"2023-07-05T18:56:12","guid":{"rendered":"https:\/\/careerinlaw.net\/uk\/?p=13857"},"modified":"2023-11-23T09:44:07","modified_gmt":"2023-11-23T14:44:07","slug":"case-summary-esso-v-mardon-1976-qb-801","status":"publish","type":"post","link":"https:\/\/careerinlaw.net\/uk\/case-summary-esso-v-mardon-1976-qb-801","title":{"rendered":"Case Summary: Esso v Mardon [1976] QB 801"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-legal-principles-and-key-points\"><strong>Legal Principles and Key Points<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the case of Esso v Mardon [1976] QB 801, the local authority&#8217;s decision to relocate the pumps of the petrol station was not disclosed to the purchaser therefore constituting as a negligent misstatement.<\/li>\n\n\n\n<li>This contract law case was related to negligent representations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Facts of the Case<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>C represented a petol station to D as a station which fills 200,000 gallons annually. D questioned the figure since the local authority determined that the petrol pumps would be at the back of the site accessed by the side roads rather than the main road.<\/li>\n\n\n\n<li>D lost money since sales did not surpass the thoroughput of 85,000 gallons and could not repay C\u2019s loan. The petrol station was rendered inefficient. C sued to reclaim the site where the petrol station was built.<\/li>\n\n\n\n<li>C claimed the figure of 200,000 gallons was simply a statement of opinion. The lower courts held otherwise since D relied on the representation as a statement of fact.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the company owe the tenant a duty of care?<\/li>\n\n\n\n<li>Is there a special relationship between the parties?<\/li>\n\n\n\n<li>Has the duty of care been breached?<\/li>\n\n\n\n<li>Is the statement made a warranty or a condition?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Held by Court of Appeal<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Appeal allowed but cross appeal dismissed &#8211; Esso breached duty of care as the approximate figure of petrol sales constitutes as a collateral warranty that C breached.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Lawson J<\/strong><\/h2>\n\n\n\n<p>Warranty or condition?<\/p><div id=\"caree-295985543\" class=\"caree-within-the-content caree-entity-placement\" style=\"margin-left: auto;margin-right: auto;text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png\" alt=\"\"  srcset=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png 448w, https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1-300x250.png 300w\" sizes=\"(max-width: 448px) 100vw, 448px\" width=\"448\" height=\"373\"  style=\"display: inline-block;\" \/><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This case heavily referred to Bisset v Wilkinson [1927] AC 177 because of the similar question as to whether there is a warranty or a statement made. In this case however C has a great degree of expertise unlike D.<\/li>\n\n\n\n<li>It can also be inferred that predicting a future figure is not a false statement with damages involved.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Lord Denning<\/strong><\/h2>\n\n\n\n<p>Collateral warranty<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The given number was made by C with reasonable care. C then declared this to D.<\/li>\n\n\n\n<li>C is therefore liable for the consequences of this huge disparity in numbers.<\/li>\n<\/ul>\n\n\n\n<p>Negligent misrepresentation<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Someone who induces the other party into an agreement has a duty to use reasonable care to see if the representation is a misstatement or not.<\/li>\n\n\n\n<li>The Hedley Byrne &amp; Co Ltd v Heller &amp; Partners Ltd [1964] AC 465 principle applied because the actual thoroughput was drastically different to the initial prediction. The negligent misrepresentation was directly foreseeable for a claim in damages.<\/li>\n\n\n\n<li>In other words, this error was fatal to D because they did not reach 200,000 gallons as expected. Therefore it was negligence and misrepresentation. &nbsp;<\/li>\n\n\n\n<li>\u201cIf he negligently gives unsound advice or misleading information or expresses an erroneous opinion, and thereby induces the other side into a contract with him, he is liable\u201d.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Legal Principles and Key Points Facts of the Case Issues Held by Court of Appeal Lawson J Warranty or condition? Lord Denning Collateral warranty Negligent misrepresentation<\/p>\n","protected":false},"author":7,"featured_media":13103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-13857","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-case-summaries","8":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.4 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Case Summary: Esso v Mardon [1976] QB 801 | Careerinlaw.net | UK<\/title>\n<meta name=\"description\" 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