Esso Petroleum v Commissioners of Customs and Excise [1975]
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Esso Petroleum Co Ltd v Commissioners of Customs and Excise [1975] UKHL 4 is a contract law case concerning the intention to create legal relations and consideration for a contract of sale.
The case revolves around Esso Petroleum's promotion where customers received a free World Cup coin for every four gallons of petrol purchased. The Commissioners of Customs and Excise contended that the coins were subject to purchase tax as goods produced in quantity for general sale, while Esso argued that the coins were free gifts, not sold under a legal obligation.
The House of Lords held that the primary transaction was the sale of petrol, not the coins. The Court also determined that there was an intention to create a legal obligation by Esso to supply the coins. The transaction occurred in a commercial context, constituting a valid legal offer, not a mere promotional statement.
Despite the intention to create a legal obligation, the Court held that there was no consideration for the transfer of the coins. The coins were provided under a separate contract for the sale of petrol, and as such, there was no monetary consideration specifically for the coins.
As a result, the court concluded that while there was an intention to create a legal obligation, there was no contract of sale by Esso. Instead, there existed a contract to produce the coins as goods for general sale.
The case revolves around Esso Petroleum's promotion where customers received a free World Cup coin for every four gallons of petrol purchased. The Commissioners of Customs and Excise contended that the coins were subject to purchase tax as goods produced in quantity for general sale, while Esso argued that the coins were free gifts, not sold under a legal obligation.
The House of Lords held that the primary transaction was the sale of petrol, not the coins. The Court also determined that there was an intention to create a legal obligation by Esso to supply the coins. The transaction occurred in a commercial context, constituting a valid legal offer, not a mere promotional statement.
Despite the intention to create a legal obligation, the Court held that there was no consideration for the transfer of the coins. The coins were provided under a separate contract for the sale of petrol, and as such, there was no monetary consideration specifically for the coins.
As a result, the court concluded that while there was an intention to create a legal obligation, there was no contract of sale by Esso. Instead, there existed a contract to produce the coins as goods for general sale.
