Niblett v Confectioners' Material [1921] 3 KB 387 Court of Appeal

The claimant purchased 1,000 tins of condensed milk from the defendant. The tins were labelled 'Nissly'. Nestle told the claimant that if they attempted to sell these on, they would apply for an injunction to prevent the sale as the label was very similar to Nestle's labels for their condensed milk. The claimants agreed not to sell them and brought an action against the sellers.

Held:

The sellers did not have the right to sell the goods and therefore the buyers were entitled to repudiate the contract.

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