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Rose and Frank Co v Crompton & Bros [1924]

Facts

  • The claimant made a contract with the defendant’s for the claimant to be the sole US distributor of their carbon paper
  • The contracted included a term which excluded legal enforceability for its breach
  • The defendant breached the contract

Issue

  • Could a contract exclude legal enforceability; could the contract be enforced

Decision

  • Yes

Reasoning

  • The contract could not be enforced
  • Usually legal non-enforceability is implied, in such agreements as between family members (see Balfour v Balfour [1919]); in this case, it was explicitly stated
  • A court will be guided by the parties’ intentions
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