The parties contracted for the sale of a ship, including a spare propeller. When the ship was delivered there was no spare propeller. It was common ground that there was no market for second-hand propellers. So the only way of providing a spare propeller would have been to commission the manufacture of a new propeller at great expense. The arbitrator held that this would be unreasonable. Instead he awarded the scrap value of the propeller, since that was all the buyer had actually lost by reason of the seller’s breach.
Held: The arbitrator’s award was upheld. The court considered the principles for the award of damages in a case of the sale of a ship with a spare propeller. The court applied principles derived from construction contracts.
Neill LJ said: ‘I can only read this award as meaning that he asked the question: what did these buyers really suffer as a result of the non-delivery of this spare propeller with this vessel? and he gave the answer: they lost its scrap value which in circumstances was the only value which it had for them.’
Judges:
Neill LJ
Citations:
[1991] 1 Lloyds Rep 120
Jurisdiction:
England and Wales
Cited by:
Cited – Pegler Ltd v Wang (UK) Ltd TCC 25-Feb-2000
Standard Conract – Wide Exclusions, Apply 1977 Act
The claimant had acquired a computer system from the defendant, which had failed. It was admitted that the contract had been broken, and the court set out to decide the issue of damages.
Held: Even though Wang had been ready to amend one or . .
Cited – Robot Arenas Ltd and Another v Waterfield and Another QBD 8-Feb-2010
The tenant company had defaulted under the lease, and the landlord had retaken possession. The landlord discarded the tenant’s possessions, and the tenant now sued, saying that the landlords as involuntary bailees owed duties to the proper owner. . .
Lists of cited by and citing cases may be incomplete.
Damages
Updated: 07 May 2022; Ref: scu.238587