Dunlop Pneumatic Tire Co Ltd v Selfridge Ltd [1915] AC 847

Understanding law – Construction of understanding – Consideration

Real factors

Dunlop was a tyre producer who agreed with their merchant to not sell the tires under a recommended retail esteem (RRP). As a significant part of the comprehension, Dunlop in like manner required their merchants to get a comparable simultaneousness with their retailers, who in this event was Selfridge. The understanding held that if tires were sold underneath the RRP, they would be required to pay £5 per tire in damages to Dunlop. This was agreed between the merchant and Selfridges, which effectively made Dunlop an untouchable to that comprehension. Sooner or later after this, Selfridge sold the tires underneath the agreed expense and Dunlop sued for hurts and an order to shield them from continuing with this activity. At the fundamental starter, the decision was given to Dunlop. This was offered by Selfridge and the decision was convoluted. Dunlop progressed.


Selfridge battled that Dunlop couldn’t maintain the understanding as Dunlop was not part of the comprehension between the seller and Selfridges. On this reason, the request for the court was whether Dunlop held the benefit to get to hurts without a legitimately restricting relationship.


The court held in a predictable decision that Dunlop couldn’t ensure for hurts in the conditions. The court found that at first, simply engaged with an understanding can ensure upon it. Also, Dunlop had not given any idea to Selfridge and thusly there could be no coupling understanding between the social events. Eventually, Dunlop was not recorded as an expert inside the understanding and could hence not be consolidated as a genuine untouchable who had rights to ensure on the understanding.