This case is concerned with the offer in the offer and acceptance chapter of contract law
Facts of Storer v Manchester City Council
A conservative party offered to sell houses to tenants for very reasonable rates. As the process of the houses was difficult so they created an application form for tenants to fill.
The claimant filled that form, and applied for the house with a mortgage. The city treasure wrote him back that the company will give full amount and it was a sale agreement.
They required claimant to sign the form and send it back and then they could send back their version of signed form. The claimant did sign the form however he forgot to fill the blank of the date on which the sale would take place.
Before the company wrote back to claimant, the conservative party lost to the labour party. When the labour party took control they said that they will not be giving houses to the tenants and wrote to the claimant that there was no agreement of sale between them.
The claimant argued that there was a completed contract between them. As the performance was started.
To this the labour party said that there was no contract, as there was no signed document that we sent and the contract was void because the claimant left the date part of the contract blank.
Whether there was a contract between the claimant and Manchester city council?
Whether leaving the date blank would make the contract void or not?
It was held by Court of Appeal (COA) that there was a contract between them. As when the claimant sent the letter to Manchester city Council (MCC), it was an offer and they accepted the offer by replying back to the claimant.
However by leaving the date blank was an administrative concern and has nothing to do with contract. So the contract was valid and claimant got the house.
Important Points of Storer v Manchester City Council
- A Contract is formed the moment acceptance takes place
- Leaving a term blank on a contract doesn’t make it void.