Facts
Manchester City Council was being run by the Conservative Party, which was running a policy of selling council houses to the occupants. Mr Gibson applied for details of his house price and mortgage terms on a form of the council. In February 1971, the treasurer replied,
The corporation may be prepared to sell the house to you at the purchase price of £2,725 less 20% = £2,180 (freehold)… This letter should not be regarded as a firm offer of a mortgage. If you would like to make formal application to buy your Council house please complete the enclosed application form and return it to me as soon as possible.
In March 1971, Mr Gibson completed the application form, except for the purchase price and returned it to the council. In May, the Labour party came back to power and halted sales. Mr Gibson was told that he could not complete the purchase. So Mr Gibson sued the council, arguing that a binding contract had already come into force.
Read more about this topic: Gibson V Manchester City Council
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