I
The facts of the recent House of Lords decision, White and Carter (Councils), Ltd. v. McGregor, were so simple and have been canvassed so thoroughly as to be now practically a matter of common knowledge. The appellants' business consisted in the placing of advertisements, for a fee, on litter bins which were then distributed to various local authorities. They agreed to run the respondents' advertisement for a period of three years. The respondents repudiated on the ground that their sales manager who had concluded the contract had no authority to do so. The appellants refused to accept the repudiation and duly displayed the advertisements for the entire period, bringing at the proper time a suit for the full amount owing under the contract. The pertinent question was: were the appellants entitled to dismiss the repudiation and give effect to the contract on their side in order to secure performance on the other side; or rather were they obliged to adopt the repudiation as the end of the contract and the beginning of a suit for damages subject to mitigation? The latter view prevailed in all but the House of Lords where a majority of three to two preferred the former.
In coming to this conclusion the House of Lords in effect overruled an earlier decision, viz., Langford and Co., Ltd. v. Dutch, the facts of which were virtually on all fours with those of the present case. In Langford's case the appellant was unsuccessful in recovering the contract price for exhibiting an advertisement film which he persisted in showing despite the respondent's repudiation of the contract.