Leaf v International Galleries [1950] 2 KB 86 is an English contract law case concerned with misrepresentation, mistake and breach of contract, and the limits to the equitable remedy of rescission.
Ernest Louis Leaf thought that he was buying Salisbury Cathedral by John Constable from International Galleries on 8 March 1944. International Galleries said that it was a Constable. Leaf paid ã85. Five years later when he tried to auction it, Leaf was told that it was not a Constable. He claimed rescission of the contract against International Galleries, to get his money back.
The case was addressed at first instance at Westminster County Court (now Central London County Court).
On appeal, Denning LJ held that Mr Leaf was barred because too much time had lapsed. He held that in the event of lapse of too much time between the making of the contract and the decision to rescind, the right to rescind is lost. He held there was a mistake about the quality of the subject matter because both parties believed the picture to be a Constable, and that mistake was fundamental. But it was not enough to void the contract, because there was no mistake about the essential subject matter (a painting). The painter's identity was a term of the contract, which could either be classified as a condition (breach of which allows termination of the contract) or a warranty (which allows damages only). Here the painter's identity was a condition, but after hanging it in one's house for five years it was far too late to reject the painting for breach of condition.
Jenkins LJ and Lord Evershed MR concurred.
In essence, the appeal court held that there was no breach of contract, no "operative mistake". There was misrepresentation, but after a period of five years the right to rescission had lapsed, leaving the claimant with no remedy at all.