Krell v. Henry
Court of Appeal
2 K.B. 740 (1903)
Paul Krell (plaintiff) left instructions for his solicitor to sublease his suite of rooms at 56A Pall Mall while he was away. C.S. Henry (defendant) saw a sign advertising the rooms for rent during the upcoming coronation of the King of England on June 26 and 27, 1902, and agreed to rent them for seventy-five pounds, paying a twenty-five pound deposit and promising the remaining fifty pounds by June 24. Before that payment came due, the King fell seriously ill and the coronation ceremonies were cancelled. Henry refused to pay the remaining fifty pounds, arguing the coronation's occurrence was an implied condition precedent to the contract; he initially counterclaimed for return of his deposit but later withdrew that claim. The trial court found an implied condition existed whose nonoccurrence made the contract unenforceable, ruling for Henry, and Krell appealed.
Whether parties may be excused from performance of a contract due to the nonoccurrence of a condition not expressly mentioned in the contract, but that extrinsic evidence reveals is understood by both parties to be the subject matter of the contract.