Snelling v John G Snelling Ltd [1973]


  • In a family business, 3 brothers loaned money to their business, on the agreement between themselves that if any of them resigned as a director, they would forfeit their loaned money
  • One brother resigned and attempted to recover the money he was owed


  • Could the remaining 2 brothers rely on a contract to which the company was a third party


  • Yes, claim failed


  • A family agreement can have legal implications, the agreement could be relied upon
RELATED CASE  Kendal & Sons v Lillico & Sons [1969]

Posted in Contract Law Revision Notes.

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