Citation(s) [1960] AC 87 | Court House of Lords | |
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Similar Stilk v Myrick, Williams v Roffey Bros & Nicholl, Currie v Misa, White v Bluett, Foakes v Beer | ||
Chappell & Co Ltd v Nestle Co Ltd [1959] UKHL 1 is an important English contract law case, where the House of Lords confirmed the traditional doctrine that consideration must be sufficient but need not be adequate.
Contents
Facts
Chappell & Co. owned the copyright to ‘Rockin’ shoes’ (by The King Brothers). Nestle was giving away records of it to people who sent in three wrappers from 6d chocolate bars, as well as 1s 6d. The Copyright Act 1956 s 8 said a 6.25% royalty needed to be paid on the ‘ordinary retail selling price’ to the owners of copyrights. Nestle said 1s 6d was the ordinary retail selling price, but Chappell & Co argued that it should be more and sought an injunction for breach of CA 1956 s 8. In this way the question arose as to whether the wrappers constituted partial consideration for the records. Mr Justice Upjohn granted an injunction, the Court of Appeal (Lords Justices Jenkins and Ormerod; Lord Justice Romer dissenting) reversed his decision, and Chappell & Co appealed.
Judgment
The majority of the House of Lords (Lord Reid, Lord Tucker and Lord Somervell of Harrow) held that the wrappers (although of trivial economic value and ultimately thrown away by Nestle) were part of the consideration; Section 8 of the Copyright Act 1956 was intended to apply where a money sum was the entire consideration for the sale and since this sale was outside of s. 8 copyright had been breached.
Lord Somervell said the following.
Viscount Simonds and Lord Keith of Avonholm delivered dissenting judgments.