Gibson+v+Manchester+City+Council

=__**Gibson v Manchester City Council [1979] UKHL 6**__=

**Facts**
Manchester City Council had a policy of selling council houses to the occupants. Mr Gibson applied for details of his house price and mortgage terms on a form from the Council. In February 1971, the treasurer replied: > The corporation may be prepared to sell the house to you at the purchase price of £2,725 less 20% = £2,180 (freehold)… This letter should not be regarded as a firm offer of a mortgage. If you would like to make formal application to buy your Council house please complete the enclosed application form and return it to me as soon as possible. In March 1971, Mr Gibson completed the application form, except for the purchase price and returned it to the council. In May, the Labour party came back to power and halted sales. Mr Gibson was told that he could not complete the purchase. So Mr Gibson sued the council, arguing that a binding contract had already come into force.

Held (Court of Appeal)
Lord Denning MR held that there was a contract, because on should "look at the correspondence as a whole and at hte conduct of the parties and see there from whether the parties have come to an agreement on everthing that was material". __The Council appealed.__

Held (House of Lords)
The House of Lords unanimously found in favour of the Council. The court held that the Council's letter was not an offer as the letter stated that "The Corporation __may__ be prepared to sell the house to you" and that "If you would like to make a formal application to buy your Council house, please complete the enclosed application form and return it to me as soon as possible". As there was never an offer available to be accepted, no contract had been formed and by extension the council had not been in breach.