Skip to content
The Law Easy

Case explanation · Company Law (Corporate Law)

Jones v. Lipman

  • 12 min
  • 6 chapters

The lecture loads from YouTube in privacy-enhanced mode only when you press play.

From the YouTube description

About this lecture

This video breaks down the landmark English company law case Jones v Lipman (1962) and its significance in understanding the doctrine of piercing the corporate veil. Learn how the court dealt with a defendant who incorporated a company as a mask to evade his pre-existing contractual obligations. The lecture covers the complete facts, rival contentions, Justice Russell's judgment, and the enduring legal principles for law exams. In this video you will learn: • Understand the facts and background of Jones v Lipman (1962) • Learn when courts will pierce or lift the corporate veil • Understand the legal concept of a company as a sham, facade, or mask • Examine why limited liability cannot be used to evade pre-existing contracts • Analyze how specific performance was ordered against both the individual and the company Topics covered: • Doctrine of piercing the corporate veil • Background of Jones v Lipman (1962) • Facts of the dispute and property transfer • Issues regarding separate legal entity and specific performance • Arguments of the parties • High Court judgment and reasoning of Justice Russell • Company as a facade, sham, or mask • Exceptions to limited liability for evasion of obligations • Practical illustration and modern relevance Important case laws: • Jones v Lipman (1962) Statutory provisions discussed: • Order 14A, Rules of the Supreme Court Useful for: LL.B. (3-year and 5-year integrated), UGC NET Law, CLAT PG and University semester exams. Chapters: 00:00 Introduction to Piercing Corporate Veil 01:48 Facts of Jones v Lipman 04:19 Legal Issues Before the Court 05:25 Arguments of the Parties 07:18 Court Judgment and Reasoning 09:23 Ratio Decidendi and Principle Notes and study material: https://www.thelaweasy.com #CompanyLaw #CorporateVeil #JonesvLipman #LawEasy #LLB

Case law

Judgments to read alongside

The written case notes: facts, issues, judgment and the principle to remember.

Case law library

Jones v. Lipman

Company Law (Corporate Law)

Lipman agreed to sell a property to Jones, changed his mind, and transferred the property to a company he had acquired so that he could not be forced to complete the sale. The court ordered specific performance against both Lipman and the company, calling the company a device, a sham and a mask. The case shows that a company used to evade an existing legal obligation will be ignored, which is one of the grounds for lifting the corporate veil.

Company Law (Corporate Law)

Turquand's case

Company Law (Corporate Law)

The company was held bound by a bond its directors gave to the Royal British Bank, even though the general resolution required by the company's deed of settlement had not been passed. The bank was taken to know the deed, but it was entitled to assume that internal formalities like passing the resolution had been completed. The case gave the doctrine of indoor management its other name, 'the rule in Turquand's case'.

Company Law (Corporate Law)

Gilford

Court of Appeal

Horne, a former managing director bound by a promise not to solicit his old employer's customers, set up a new company and solicited those customers through it. The Court of Appeal held that the new company was a mere cloak or sham formed to escape his promise, and granted an injunction against both Horne and the company. The case is a leading example of lifting the corporate veil where a company is used to escape a legal obligation.

Company Law (Corporate Law)

Notes

Notes on Company Law (Corporate Law)

All notes on this subject
Company Law (Corporate Law) Complete notes

Corporate Law: Complete Notes

Corporate Law (Company Law) studies the company from beginning to end: from what a company is and how it is born, to how it finally comes to an end. The course has six units; the first deals with the introduction to company law and the incorporation of a company.

136 min read

Company Law (Corporate Law) Complete notes

Corporate Law One Shot

The evolution of corporate law in India has been influenced significantly by British laws, evolving over time to regulate the rights, duties, and responsibilities of companies. Below is the development explained in a po…

113 min read

Company Law (Corporate Law) Case compilation

Corporate Law Case Law

Key Point: The case clarified that corporations are not "citizens" under the Indian Constitution.

18 min read

Practise 24 Company Law (Corporate Law) MCQs Check what you have learnt with practice questions on this subject.

Video lectures

More on Company Law (Corporate Law)

All lectures on this subject

Learn with video

Watch every lecture free on YouTube

Complete courses, landmark case explanations and quick Shorts from The Law Easy channel. Subscribe to get new lectures as soon as they are published.