A M Gillespie and Co v John Howden and Co, Et E Contra: SCS 7 Mar 1885

A customer ordered from a shipbuilder a ship according to specification, which bore, inter alia, that the ship was ‘to Carry 1800 tons dead weight, including coals, on 14 1/2 feet draught,’ and that a model was to be submitted for purchaser’s approval. There was no stipulation as to speed. In implement of this contract the shipbuilder submitted a model which was approved of by the purchaser, and thereafter completed and delivered a ship built according to the model. This ship was found to be short of the carrying capacity stipulated for by about 200 tons. In an action of damages against the shipbuilder for breach of contract he maintained that it was impossible to build a steamer according to the model which would carry the specified weight, and further, that the customer had suffered no damage, because a ship intended to carry such a weight, and of the description according to the model, would have been less valuable than that actually delivered. Held that the shipbuilder, being in breach of contract, was liable in damages.
Observed that in such a case the true standard of damage is the difference between the earning power of the ship contracted for and that furnished.

Citations:

[1885] SLR 22 – 527, (1885) 22 SLR 5

Links:

Bailii

Jurisdiction:

Scotland

Cited by:

CitedCammell Laird and Co Ltd v Manganese Bronze and Brass Co Ltd HL 1934
Shipbuilders agreed to build two ships to carry heavy liquids. They were to have propellers of special construction and diameter according to certain specifications. One proved unsatisfactory because it caused too much noise.
Held: If the . .
CitedMT Hojgaard As v EON Climate and Renewables UK Robin Rigg East Ltd and Another SC 3-Aug-2017
The defendants had requested tenders for the design and construction of an offshore wind farm. The court now considered the situation arising because of inconsistencies between documents in the tender request. The successful tender was based upon an . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 04 September 2022; Ref: scu.580224