The buyer bought 30lbs of cabbage seed, but the seed was not correct, and the crop was worthless. The seed cost pounds 192, but the farmer lost pounds 61,000. The seed supplier appealed the award of the larger amount and interest, saying that their contract limited their liability to the cost of the seed.
Held: The appeal failed, it would not be fair or reasonable to allow the seed merchants to rely on the clause to limit their liability.
It would not be fair or reasonable to allow seed merchants to rely on a clause limiting their liability for defective seeds. It was relevant that, in the course of dealing, the seed merchants ‘rarely, if ever, invoke the clause’.
Kerr LJ said: ‘the evidence clearly shows that the clause is not relied on ‘to the letter’ in practice, and neither the suppliers nor the farmers expect it to be applied literally. Its existence merely provides a basis for the negotiation of mutually acceptable settlements’.
Oliver LJ said: ‘the question is not whether there are not circumstances in which a clause such as this may be fair and reasonable but whether, in the circumstances, it would be fair and reasonable to allow reliance on it.’
The Canada Steamship guidelines were now to be understood in the context of the 1977 Act.
Judges:
Lord Denning Mr, Kerr LJ , Oliver LJ
Citations:
[1983] 1 All ER 108, [1982] EWCA Civ 5, [1983] 1 All ER 108, [1983] QB 284
Links:
Statutes:
Supply of Goods (Implied Terms) Act 1973, Unfair Contract Terms Act 1977 1
Jurisdiction:
England and Wales
Citing:
Cited – George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd CA 29-Sep-1982
The buyer bought 30lbs of cabbage seed, but the seed was not correct, and the crop was worthless. The seed cost pounds 192, but the farmer lost pounds 61,000. The seed supplier appealed the award of the larger amount and interest, saying that their . .
Cited – Photo Production Ltd v Securicor Transport Ltd HL 14-Feb-1980
Interpretation of Exclusion Clauses
The plaintiffs had contracted with the defendants for the provision of a night patrol service for their factory. The perils the parties had in mind were fire and theft. A patrol man deliberately lit a fire which burned down the factory. It was an . .
Cited – Ailsa Craig Fishing Co Ltd v Malvern Fishing Co Ltd HL 26-Nov-1981
Even though a shipowner who had carried cargo on deck was not entitled to rely on the exceptions to liability in his contract, a limitation clause was different and should not be construed by reference to the specially exacting standards applicable . .
Cited – Glynn v Margetson and Co HL 1893
A printed form of bill of lading contained general words of obligation referring to the goods being shipped ‘in and upon the .. Zena, now lying in the port of Malaga, and bound for Liverpool’. Those words were followed by printed words intended ‘to . .
Mentioned – Levison v Patent Steam Carpet Cleaning Co Ltd CA 1977
A valuable Chinese carpet had been taken for cleaning but was lost by the bailee. The bailee said that his liability was limited under the terms of the contract to a particular sum. A fundamental breach is ‘a breach going to the root of the . .
Mentioned – Sze Hai Tong Bank Ltd v Rambler Cycle Co Ltd PC 1959
Lord Denning noted that the exclusion clause at issue ‘on the face of it, could not be more comprehensive’ but declined to interpret it as absolving the shipping company from liability. He said: ‘If such an extreme width were given to the exemption . .
Cited – L’Estrange v F Graucob Limited CA 1934
The company’s order form contained a clause providing them with complete exemption from liability: ‘Any express or implied, condition, statement of warranty, statutory or otherwise is expressly excluded’.
Held: If a party signs a written . .
Cited – London and North Western Railway Co v Neilson HL 1922
Lord Buckmaster said: ‘My Lords, the common law imposes upon the carriers of goods definite and well-known liabilities for the protection of owners. These liabilities are frequently modified by the terms of express contracts, but except to the . .
Cited – Cunard Steamship Co v Buerger HL 1927
Eight cases of textile goods belonging to the respondents had been lost in the course of a voyage aboard the S.S. Verentia, owned by the appellant company, under circumstances which were found to constitute deviation from the provisions of the Bill . .
Cited by:
Cited – Moyna v Secretary of State for Work and Pensions HL 31-Jul-2003
The appellant had applied for and been refused disability living allowance on the basis of being able to carry out certain cooking tasks.
Held: The purpose of the ‘cooking test’ is not to ascertain whether the applicant can survive, or enjoy a . .
Appeal from – George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd HL 1983
A seedsman sought to rely upon an exclusion clause preventing any claim by a purchaser by way of set off against its sales invoices. The House was asked whether a contractual term was ‘fair and reasonable’ within the meaning of section 55 of the . .
Cited – Schenkers Limited v Overland Shoes Limited and Schenkers International Deutschland Gmbh v Overland Shoes Limited CA 12-Feb-1998
A clause in a shipping freight contract using the standard British International Freight Association terms disallowing a set-off was not unreasonable. The clause read ‘The customer shall pay to the company in cash or as otherwise agreed all sums . .
Cited – George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd CA 29-Sep-1982
The buyer bought 30lbs of cabbage seed, but the seed was not correct, and the crop was worthless. The seed cost pounds 192, but the farmer lost pounds 61,000. The seed supplier appealed the award of the larger amount and interest, saying that their . .
Cited – HIH Casualty and General Insurance Limited and others v Chase Manhattan Bank and others HL 20-Feb-2003
The insurance company had paid claims on policies used to underwrite the production of TV films. The re-insurers resisted the claims against them by the insurers on the grounds of non-disclosure by the insured, or in the alternative damages for . .
Cited – Regus (UK) Ltd v Epcot Solutions Ltd CA 15-Apr-2008
The appellant had contracted to provide office accomodation to the defendant. The air conditioning did not work and there were other defects. The appellant now challenged a finding of liability and that its contract terms which were said to totally . .
Cited – Bracknell Forest Borough Council v Green and Another CA 20-Mar-2009
The council sought possession of the property saying that the three bedroomed property was underused by the tenant and his sister. The respondents said that it was not too extensive, and that no satisfactory alternative accommodation had been . .
Lists of cited by and citing cases may be incomplete.
Contract
Leading Case
Updated: 08 April 2022; Ref: scu.262678