Cundy v Lindsay (1878) 3 App Cas 459

House of Lords

Basic Facts: A rogue (A) impersonated a reputable firm, Blenkiron & Co, hired rooms, and ordered linen from C (Lindsay). C sent the goods invoiced to Blenkiron & Co, but A sold them to third parties, including D. C later discovered the fraud and sued D for the goods.

Issue for the Court: Can C claim against D for goods sold under mistaken identity?

Held : The court held that no contract existed between C and A due to mistaken identity, so A could not pass title to D.

  • Lord Cairns concluded that C never intended to contract with A, only with Blenkiron & Co. Therefore, A could not transfer title to D, making the sale void.

  • Lord Hatherley reiterated that C's mistaken belief about the identity of the contracting party rendered the transaction void as A could not pass title to third parties.

💡Leveluplaw : This case established the principle that contracts are void if there is a mistake about the identity of the contracting party, affecting the validity of the title transferred.

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D and C Builders v Rees [1966] 2 QB 617

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CTN Cash and Carry Ltd v Gallaher Ltd [1994] 4 All ER 714