A foreign shipowner employed a Leith shipbroker to find freight for a vessel. The shipbroker entered into negotiations with third parties and reported to his principal that he had ‘fixed’ the ship on certain terms. As a matter of fact no bargain was concluded between the shipbroker and the third parties. Held (1) that the shipbroker was liable to the shipowner for loss incurred by the latter by reason of his relying on the former’s incorrect statement; (2) that in the absence of evidence that the shipowner sustained any loss of profit by his reliance on the incorrect statement, no damages fell to be awarded him in respect of loss of profit, but that a sum fell to be paid him as compensation and solatium in respect of outlays on telegrams and trouble.
Judges:
Lord Chancellor (Halsbury), Lord Davey, and Lord Robertson
Citations:
[1905] UKHL 557, 42 SLR 557
Links:
Jurisdiction:
England and Wales
Agency
Updated: 26 April 2022; Ref: scu.621175