Hughes v Metropolitan Railway Co (1877) 2 App Cas 439

Written By Nicolas Heyes

House of Lords

Basic Facts: C (landlord) gave D (tenant) notice to repair property within six months, or the lease would be forfeited. D offered to sell the property to C, asking to defer repairs until the negotiations were complete. When negotiations failed, C attempted to forfeit the lease.

Issue for the Court: Can a party renegotiate or avoid a contract modification made without consideration?

Held : The principle of promissory estoppel applies, preventing C from reneging on the promise to defer the lease forfeiture.

  • Lord Cairns LC : Parties who enter into negotiations that lead one party to reasonably believe that strict rights will not be enforced should not be allowed to go back on their promise, even if no formal consideration was provided.

Nicolas Heyes
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