gibson v manchester city council

• In the case of Gibson v Manchester City Council, the defendant had adopted a policy of selling council houses to its tenants.
• The claimant, a tenant of a council house, had expressed an interest in purchasing his council house and had completed a form contained in a brochure sent out by the council.
• In February 1971, the city treasurer responded to the claimant's application stating that the council may be prepared to sell the house at the purchase price and providing details of the mortgage.
• The letter from the city treasurer did not amount to a firm offer of a mortgage and invited the claimant to make a formal application using an enclosed form.
• In March 1971, the claimant returned the completed form to the defendant, leaving out the purchase price as he was inquiring on some repairs.
• Following local elections in May, control of the Council passed from the Conservatives to Labour.
• The new Labour Council policy was that council houses would not be sold under the previous Conservative policy unless a legally binding contract was already in place.
• The defendant refused to sell to the claimant, who brought an action against them in breach of contract.
• Lord Denning, in the Court of Appeal, ruled that there was a valid contract between the parties.
• Lord Diplock, in the House of Lords, ruled that there was no valid contract in favour of the claimant.