The parties contracted for the use of excess capacity in a pipeline. The party contracting to use the excess did not ever need it, but was claimed to have committed itself to payment for the facility. They said that the facility was not ready, and therefore the contract had not commenced. Valves at the end of the pipes where the connection would be made, leaked. The contract required the pipe to be made available, but that did not mean they had to be instantly ready. The commencement date brought obligations for both parties, and this suggested that it could be available despite a remediable defect later becoming apparent.
Judges:
Lord Bingham of Cornhill Lord Hoffmann Lord Hope of Craighead Lord Hobhouse of Wood-borough Lord Scott of Foscote
Citations:
[2001] UKHL 18, [2001] 1 All ER (Comm) 865
Links:
Jurisdiction:
England and Wales
Contract
Updated: 04 June 2022; Ref: scu.162828