Wood v. Lucy, Lady Duff-Gordon

222 N.Y. 88, 118 N.E. 214 · New York Court of Appeals · 1917

Contracts Assigned in 29 casebooks

Case brief summary

Rule

A contract can exist even if one side does not use exact promise words, as long as a promise to do something can be fairly read into the whole agreement from its terms and the surrounding circumstances.

Facts

A fashion designer let an agent exclusively approve others' designs using her name and sell her designs for a year, splitting profits. She allegedly sold items secretly without paying him.

Procedural history

The agent sued for breach of contract. The designer claimed the agreement wasn't valid since the agent never promised anything. A lower court agreed and dismissed the case, so the agent appealed.

Issue

Did the agreement count as a binding contract even though the agent never directly stated in words that he would try to sell the designer's products or place her endorsements?

Holding

Yes, the court held that a promise by the agent to use reasonable effort was implied from the whole agreement, so the contract was valid and the case could go forward.

Reasoning

The court explained that old legal rules required exact promise words, but modern law allows an agreement to be read as a whole to see if it clearly assumes one side will act. Because the designer gave the agent the only right to use her name for a year, and his pay depended entirely on him getting profits, plus he promised to report earnings monthly and get legal protections like patents, this only made sense if he was required to actually try to sell her designs.

Opinions

Majority (Cardozo): An implied promise to use reasonable efforts can be read into an exclusive agency contract from its overall structure and terms, making it enforceable.

Dissent (Hiscock, Chase, Crane): These judges dissented without a separate written opinion explaining their reasoning.

Test yourself

Question 1 of 5

What was Lucy, Lady Duff-Gordon's occupation according to the opinion?

4 more questions in the full brief →
Cold call

The professor turns to you.

What were the facts of this case?
Try a cold call

In the full brief

The trap

On the exam

Other issues in this opinion

Unlock the full brief free