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Bradbury v Morgan (1862) 1 H & C 249

ResourcesBradbury v Morgan (1862) 1 H & C 249

Facts

  • Leigh provided a guarantee to pay for goods supplied to his brother, William Morgan, up to a specified limit.
  • After Leigh died, the plaintiffs continued to supply goods to William Morgan, unaware of Leigh’s death.
  • When the total sum exceeded the guaranteed amount, the plaintiffs sought payment from Leigh’s executors.
  • The executors contended that the guarantee terminated upon Leigh’s death.
  • The Court of Exchequer found for the plaintiffs, holding the guarantee valid until the plaintiffs had notice of Leigh’s death.

Issues

  1. Does the death of an offeror immediately terminate a continuing guarantee, even if the offeree has no notice of the death?
  2. At what point does an offer, such as a guarantee, cease to be valid in the event of the offeror’s death?

Decision

  • The court held that a continuing guarantee remains valid until the offeree is informed of the offeror’s death.
  • The guarantee provided by Leigh did not terminate automatically upon his death.
  • The executors remained liable on the guarantee for goods supplied prior to the plaintiffs gaining knowledge of Leigh’s death.
  • A continuing guarantee does not end merely due to the offeror’s death; it continues until notice of death is communicated to the offeree.
  • Communication of essential changes, such as revocation or death, is necessary for terminating continuing offers or guarantees.
  • Distinction exists between continuing guarantees (which can end with notice of death) and guarantees limited to single transactions.
  • Later cases, such as Dickinson v Dodds (1876) 2 Ch D 463, recognize that acquiring knowledge of circumstances ending an offer (such as the offeror’s death) may be sufficient for termination.

Conclusion

Bradbury v Morgan established that a continuing guarantee remains effective until the offeree has notice of the offeror’s death, emphasizing the necessity of communication to terminate ongoing contractual offers or guarantees.

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