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Penney v Clyde Shipbuilding and Engineering Co Ltd: HL 15 Mar 1920

On the outbreak of war, a ship, being built to the order of an enemy firm, was in the builders’ yard nearing completion. The contract provided that ‘the steamer as she is constructed . . shall immediately as the work proceeds become the property of the purchasers,’ and the price was payable by instalments. On the ship being requisitioned and paid for by the Admiralty, held that the builders were bound to account to the Custodian of Enemy Property for Scotland under the Trading with the Enemy Amendment Acts 1914 and 1916 for the instalments paid, subject to any counter-claims arising out of the occupation of the berth beyond the period required for building.

Judges:

Lord Chancellor (Birkenhead), Viscount Haldane, Viscount Finlay, Viscount Cave, Lord Dunedin

Citations:

[1920] UKHL 342

Links:

Bailii

Jurisdiction:

Scotland

Contract

Updated: 13 June 2022; Ref: scu.631513

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