Storer Case Note - legal case note PDF

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Storer v Manchester City Council [1974] 1 W.L.R. 1403 Court of Appeal Lord Denning M.R. , Stephenson and Lawton L.JJ. 1974 June 5, 6 Issue The issue is whether Storer and Manchester Council had agreed on a contract for the sale of a council house and whether the exchange of contracts was necessary to make it binding or if the form of agreement meant offer and acceptance had occurred.

Facts In May 1971 Labour took over administration, this meant the policy of selling council houses to tenants was to be reversed. Labour realised they could not retract contracts but stated they would cease making more claiming that contracts that had not been exchanged were not concluded. On March 9th the city treasurer and the town clerk sent a letter to Storer enclosing the agreement for sale, and on March 20th Storer signed and returned the form. The date when the tenancy ceases was left blank. The staff were overworked and did exchange the contract.

Law Lord Denning stated that the form sent March 9th by the treasurer was an offer and the acceptance was made on the 20th by Storer returning it. The contract was concluded on Storer’s acceptance and an exchange in contract was not necessary as this was not “subject to contract”, Bigg v. Boyd Gibbins Ltd. Furthermore he states that the item that was left blank was for “administrative convenience” and referred to Smith v. Mansi.

Held Lord Denning stated that the judge was right in holding that there was a binding contract despite no exchange. He stated that specific performance should be preformed and the appeal dismissed.

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