Marks And Spencer Case Study
I. INTRODUCTION
Baird Textiles Holdings Ltd v Marks & Spencer plc [2002] 1 All ER (Comm) 737 is an appeal case decided by the Court of Appeal (Civil Division) in England in 2001. The case was tried by three judges (Sir Andrew Morritt V-C, Judge and Mance LJJ). In this case, the claimant is Baird Textiles Holdings Ltd, a supplier of garment to the defendant. The defendant, Marks & Spencer, is a well-known clothing retailer. This is a contract law case involving law of equity.
This case addresses two main issues: implying contract and estoppel. This case is best known for its decision on the second issue: despite the decision of the Australian High Court in Waltons Stores (Interstate) Ltd v Maher [1988] HCA 7 that promissory estoppel can be
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In case that some matters (e.g. prices and quantities) are not specified, the court examines whether there are objective criteria which can enable it to determine such matters. In WN Hillas & Co Ltd v Arcos Ltd [1932] UKHL 2, although the option to “buy 100,000 Standards for delivery in 1931” seems vague, the court held it as sufficiently certain as objective criteria were present. Having regard to the dealing between the two parties in 1930 of “22,000 standards of softwood goods of fair specification over the season 1930”, the court relied on this as criterion for determining what the seemingly vague term meant and managed to construe it. This view is affirmed in the Australian Blue Metal case ([1962] 3 All ER 335, [1963] AC 74): as there were not such objective criteria, the court could not use the “implication of reasonableness” to determine what the parties meant.
Applying the principle, the court found no such criteria in this case. Although the claimant contended that there was a contractual obligation for the defendant to acquire garments from the it in quantities and at prices which “in all the circumstances were reasonable”, the court could not determine what were the “reasonable quantities and prices” without objective criteria. Due to the absence of such criteria for the court to determine what would be reasonable as to prices or quantities, the alleged term was too uncertain to be legally
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