Grist v Bailey: 1966

The parties believed that the property to be sold was occupied by a ‘protected tenant’. This was not so since the property could have been sold with vacant possession. It was argued that the contract could be set aside for common mistake.
Held: It was a common mistake as to an ascertainable fact, not a matter of opinion as to value.

Citations:

[1967] Ch 532, [1966] 2 All ER 875, [1967] 1 Ch 532

Jurisdiction:

England and Wales

Cited by:

CitedWilliam Sindall Plc v Cambridgeshire County Council CA 21-May-1993
Land was bought for development, but the purchaser later discovered a sewage pipe which very substantially limited its development potential. The existence of the pipe had not been disclosed on the sale, being unknown to the seller.
Held: . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 29 April 2022; Ref: scu.185670

Gray v Carr: 1871

Citations:

(1871) LR 6 QB 522

Jurisdiction:

England and Wales

Cited by:

ConsideredMiramar Maritime Corporation v Holborn Oil Trading Limited (‘The Miramar’) HL 1984
A bill of lading incorporated a charterparty. The question was whether clauses in the charterparty or bill of lading prevailed. The charter clause incorporated a demurrage clause making the charterer’s laible for demurrage, and the owners asserted . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 29 April 2022; Ref: scu.185190

Emeh v Kensington and Chelsea and Westminster Area Health Authority: CA 1 Jul 1984

A sterilisation operation had been performed negligently and failed and the claimant was born.
Held: The birth of a child with congenital abnormalities was a foreseeable consequence of the surgeon’s careless failure to clip a fallopian tube effectively. The authority could not expect her to terminate the pregnancy. The mother was entitled to recover damages, including damages for her future loss of earnings, following the birth of a child with congenital abnormalities who required constant medical and parental supervision.
Waller LJ said: ‘In my view it is trite to say that if a woman becomes pregnant, it is certainly foreseeable that she will have a baby, but in my judgment, having regard to the fact that in a proportion of all births – between one in 200 and one in 400 were the figures given at the trial – congenital abnormalities might arise, makes the risk clearly one that is foreseeable, as the law of negligence understands it.’
On a claim in contract the court held that there was no rule of public policy which precluded recovery of damages for pain and suffering and for maintaining the child. The court took a multiplier of 8 for a child 5 years old at the time of the appeal. The total award in respect of pain, suffering and loss of amenities was andpound;13,000.

Judges:

Waller LJ

Citations:

[1985] 1 QB 1012, [1984] 3 All ER 1044

Jurisdiction:

England and Wales

Citing:

DoubtedUdale v Bloomsbury Area Health Authority QBD 1983
The plaintiff underwent a sterilisation operation. The operation was painful and she later became pregnant. She sought damages for the pain and suffering and the additional costs of caring for the new child.
Held: Public policy held fast . .
ApprovedThake v Maurice CA 1986
A vasectomy was performed. The husband was told that contraception precautions were not necessary but a child was born. The claim was brought in contract and in tort. The first instance court found no reason why public policy prevented the recovery . .
AppliedMekew v Holland and Hannen and Cubitts (Scotland) 1970
. .

Cited by:

CitedMacFarlane and Another v Tayside Health Board HL 21-Oct-1999
Child born after vasectomy – Damages Limited
Despite a vasectomy, Mr MacFarlane fathered a child, and he and his wife sought damages for the cost of care and otherwise of the child. He appealed a rejection of his claim.
Held: The doctor undertakes a duty of care in regard to the . .
CitedSpencer v Wincanton Holdings Ltd (Wincanton Logistics Ltd) CA 21-Dec-2009
The claimant suffered injury for which he sought compensation from his employers. He later had to have his leg amputated as a consequence, but then through his own inadvertence suffered further injury to his other leg and a complete loss of . .
Lists of cited by and citing cases may be incomplete.

Damages, Contract, Professional Negligence

Updated: 29 April 2022; Ref: scu.183007

West of England Shipowners Mutual Insurance Association (Luxembourg) v Cristal Ltd: ComC 25 Jan 1995

cw Contract – contractual rights – fulfilment of conditions – freedom to fulfil bargain – court action precluded – ouster clauses – arbitration – term – construction – one party sole arbitrator of construction – contrary to public policy – exceptions – international contract – public policy – application
The parties disputed a contract providing compensation for oil pollution losses. It was between oil companies who contributed to the fund and its administrators, Cristal. It provided that Cristal was to ‘be the sole judge in accordance with these terms of the validity of any claim made hereunder’. The claimant association made a claim which Cristal rejected. It was accepted that the association was to be treated as a party to the contract.

Judges:

Waller J

Citations:

[1995] 1 Lloyd’s Rep 560, Lloyd’s List March 15 1995

Jurisdiction:

England and Wales

Citing:

Reversed on AppealWest of England Ship Owners Mutual Insurance Association (Luxembourg) v Cristal Ltd (The Glacier Bay) CA 26-Oct-1995
An agreement giving to a ‘sole judge’ the power to make a final decision was effective, and there was no appeal from his decision. The defendant’s decision in his capacity as Convention administrator was as a final arbiter and was unreviewable.

Cited by:

Appeal fromWest of England Ship Owners Mutual Insurance Association (Luxembourg) v Cristal Ltd (The Glacier Bay) CA 26-Oct-1995
An agreement giving to a ‘sole judge’ the power to make a final decision was effective, and there was no appeal from his decision. The defendant’s decision in his capacity as Convention administrator was as a final arbiter and was unreviewable.
Appeal fromWest of England Shipowners Mutual Insurance Association (Luxembourg) v Cristal Ltd CA 1996
A contract had been set up to provide compensation for oil pollution losses. It was between oil companies who contributed to the fund and its administrators, Cristalwho was to ‘be the sole judge in accordance with these terms of the validity of any . .
Lists of cited by and citing cases may be incomplete.

Contract, Arbitration

Updated: 29 April 2022; Ref: scu.182568

Hughes v Asset Managers Plc: CA 13 May 1994

The appellants had entered into discretionary investment management agreements wth the respondent. The investments made a substantial losss which the appellants sought to recover, saying that the agreements were void under the 1958 Act.
Held: The absence of a licence did not avoid an agreement needing a licence.
The claimants had put money with the defendants to invest. The markets fell, and they lost substantially. They now sought recovery saying that the asset management agreement was invalid and void under section 1 in that the person who signed the agreement for the defendants was not himself authorised at the time.
Held: The claimants appeal failed. The Act did not have the effect that non-compliance would render the contract void.

Judges:

Nourse, Hirst, Saville LJJ

Citations:

Ind Summary 13-Jun-1994, [1994] EWCA Civ 14, [1995] 3 All ER 669, [1994] CLC 556

Links:

Bailii

Statutes:

Prevention of Frauds (Investment) Act 1958 1

Jurisdiction:

England and Wales

Citing:

CitedCornelius v Phillips HL 1918
A transaction which had been entered into in contravention of statutory restrictions was unlawful, and any contract which formed part of it conferred no rights on the moneylender. . .
CitedSt John Shipping Corporation v Joseph Rank Limited 1956
The defendants held a bill of lading for part of the cargo carried on the plaintiffs’ vessel from Mobile, Alabama, to Birkenhead. The vessel was over laden and the plaintiffs were guilty of an offence under the 1932 Act. The defendants relied on the . .
CitedRe Cavalier Insurance Co Ltd 1989
The court considered the effect on a transaction of rules which prohibited the actions of both parties, in this case a prohibition on effecting and carrying out contracts of insurance. . .
CitedCope v Rowlands 1836
The court considered te situation of entry into a contract by a person under a statutory prohibition. Parke B said: ‘It is perfectly settled that where the contract which the plaintiff seeks to enforce, be it express or implied, is expressly or by . .
CitedHalvanon Insurance Co Ltd v Central Reinsurance Corporation CA 1988
The fact that a contract was made by an unauthorised insurer contrary to the 1974 Act, which was silent as to the effect of a breach of this statute, did not render the contracts made by the unauthorised insurer void. Rendering transactions void . .

Cited by:

CitedPatel v Mirza SC 20-Jul-2016
The claimant advanced funds to the respondent for him to invest in a bank of which the claimant had insider knowledge. In fact the defendant did not invest the funds, the knowledge was incorrect. The defendant however did not return the sums . .
Lists of cited by and citing cases may be incomplete.

Financial Services, Financial Services, Contract

Updated: 29 April 2022; Ref: scu.81519

J M Allan (Merchandising) Limited v Cloke: CA 1963

the plaintiff rented to the defendant a roulette table, together with copies of a book of rules, for use in a club. The rules stated that a charge of sixpence was payable on any bet before the croupier spun the wheel. Using a roulette table in a club in that way was an offence under the Betting and Gaming Act 1960, although neither of the parties appreciated that fact. The trial judge found that it was the intention of both parties when they made the contract that the table would be used in the way described in the rules. Accordingly the agreement was unlawful and the plaintiff was not entitled to recover hire under it.
Held: The appeal failed.
Lord Denning MR set out the principle: ‘[Counsel for the plaintiff] argues before us that the parties to this letting were ignorant of its unlawfulness: and that, in these circumstances (as it is a contract which could lawfully be performed) it is not to be regarded as unlawful unless they had a ‘wicked intention to break the law.’ He relies on the well-known judgment of Blackburn J in Waugh v Morris (1873) LR 8 QB 202. Now I desire to say that where two people together have the common design to use a subject-matter for an unlawful purpose, so that each participates in the unlawful purpose, then that contract is illegal in its formation: and it is no answer for them to say that they did not know the law on the matter. I would take a comparable case where there is a common design to use a subject matter for an immoral purpose. If a landlord lets a flat to a prostitute at a rent beyond any normal commercial rent, or if he lets her a brougham of a specially intriguing nature [a reference to Pearce v Brooks (1866) LR 1 Exch 213] it may fairly be inferred that it was their common design that it should be used for an immoral purpose. The letting is unlawful and he cannot recover the rent or hire. It is different with the washerwoman who washes the clothes of the prostitute or the butcher who supplies her with meat. They may know of her trade but they charge her normal commercial prices. There is there no common design. There is no participation in the immoral purpose, but merely knowledge of it. And that is no bar to recovering the price. Likewise with an unlawful purpose, active participation debars, but knowledge by itself does not. As I read Waugh v Morris there was there no participation in any unlawful purpose and the plaintiff could recover. In this case, however, there was participation. The common design was that a game should be played which was in fact unlawful.’

Judges:

Lord Denning MR

Citations:

[1963] 2 QB 340

Jurisdiction:

England and Wales

Citing:

CitedPearce v Brooks 1866
The contract was for the hire of an ornamental brougham to a prostitute which was supplied with knowledge that it would be used ‘as part of her display’. She returned it in a damaged condition, and refused to make any payments under the contract as . .

Cited by:

CitedPatel v Mirza SC 20-Jul-2016
The claimant advanced funds to the respondent for him to invest in a bank of which the claimant had insider knowledge. In fact the defendant did not invest the funds, the knowledge was incorrect. The defendant however did not return the sums . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 29 April 2022; Ref: scu.588240

Ashmore, Benson, Pease and Co v A V Dawson Ltd: CA 1973

By acquiescing in the unlawful overloading of the hauliers’ lorries, the consignors’ assistant transport manager and his assistant made the haulage contract unenforceable at the instance of the consignors, who were unable to recover when a lorry toppled over damaging the goods being carried.
Whether a contract is unenforceable for illegal performance, depends upon whether the method of performance chosen and the degree of participation in that illegal performance is such as to ‘turn the contract into an illegal contract’ Where illegality by virtue of the common law is concerned the question is whether the common law would say that a contract has by its illegal performance been turned into an illegal contract. A party may be prevented from enforcing it.
Denning LJ said: ‘Not only did [the plaintiff’s transport manager] know of the illegality. He participated in it by sanctioning the loading of the vehicle with a load in excess of the regulations. That participation in the illegal performance of the contract debars [the plaintiff] from suing [the defendant] on it or suing [the defendant] for negligence.’ and per Scarman LJ ‘But knowledge by itself is not . . enough. There must be knowledge plus participation . . For these reasons I think the performance was illegal’.’

Judges:

Denning LJ, Scarman LJ

Citations:

[1973] 1 WLR 828

Jurisdiction:

England and Wales

Citing:

CitedB and B Viennese Fashions v Losane CA 1952
. .

Cited by:

CitedHall v Woolston Hall Leisure Limited CA 23-May-2000
The fact that an employment contract was tainted with illegality of which the employee was aware, did not deprive the employee of the possibility of claiming rights which were due to her under a statute which created rights associated with but not . .
CitedColen and Another v Cebrian (UK) Limited CA 20-Nov-2003
The company paid the claimant sales commission. Part was diverted and paid to his wife to reduce the tax payable. The employer had appealed a finding of unfair disamissal, the company arguing that the contract was illegal.
Held: The contract . .
CitedJetivia Sa and Another v Bilta (UK) Ltd and Others SC 22-Apr-2015
The liquidators of Bilta had brought proceedings against former directors and the appellant alleging that they were party to an unlawful means conspiracy which had damaged the company by engaging in a carousel fraud with carbon credits. On the . .
CitedPatel v Mirza SC 20-Jul-2016
The claimant advanced funds to the respondent for him to invest in a bank of which the claimant had insider knowledge. In fact the defendant did not invest the funds, the knowledge was incorrect. The defendant however did not return the sums . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 29 April 2022; Ref: scu.189939

Maxim Nordenfelt Guns and Ammunition Co v Nordenfelt: CA 1893

Bowen LJ said: ‘Rules which rest upon the foundation of public policy, not being rules which belong to the fixed or customary law, are capable, on proper occasion, of expansion or modification’

Judges:

Bowen LJ

Citations:

[1893] 1 Ch 630

Jurisdiction:

England and Wales

Cited by:

Appeal fromNordenfelt v Maxim Nordenfelt Guns and Ammunition Company HL 1894
Exceptions to Freedom to Trade
The purchaser of the goodwill of a business sought to enforce a covenant in restraint of trade given by the seller.
Held: At common law a restraint of trade is prima facie contrary to public policy and void, unless it can be shown that the . .
CitedPatel v Mirza SC 20-Jul-2016
The claimant advanced funds to the respondent for him to invest in a bank of which the claimant had insider knowledge. In fact the defendant did not invest the funds, the knowledge was incorrect. The defendant however did not return the sums . .
Lists of cited by and citing cases may be incomplete.

Contract, Employment

Updated: 29 April 2022; Ref: scu.541952

Mohammed v Alaga and Co (A Firm): ChD 2 Apr 1998

A party to an agreement to share in solicitors’ fees contrary to professional rules was unable to enforce it in any way.

Citations:

Times 02-Apr-1998, Gazette 29-Apr-1998

Statutes:

Solicitors Practice Rules 1990 (Law Society 1991)

Jurisdiction:

England and Wales

Citing:

CitedSwain v The Law Society HL 1983
The Solicitors’ Practice Rules had the force of a statute, being rules made by the Council of the Law Society with parliamentary sanction for the protection of that section of the public who might be in need of legal advice, assistance or oversight. . .

Cited by:

Appeal fromMohammed v Alaga and Co (A Firm) CA 2-Nov-1998
(Application for Leave) An agreement between solicitors and non-solicitors for the payment of a fee for introductions was illegal and unenforceable. Where however the non-solicitor provided services as part of the arrangement, a claim against the . .
Appeal FromMohammed v Alaga and Co (A Firm) CA 30-Jun-1999
A party appealed against a finding that an agreement as to fee sharing with a solicitors’ firm, being in breach of the Solicitors Practice Rules, was unenforceable and void.
Held: The appeal failed as to illegality, but succeeded on a quantum . .
CitedPatel v Mirza SC 20-Jul-2016
The claimant advanced funds to the respondent for him to invest in a bank of which the claimant had insider knowledge. In fact the defendant did not invest the funds, the knowledge was incorrect. The defendant however did not return the sums . .
Lists of cited by and citing cases may be incomplete.

Legal Professions, Contract

Updated: 29 April 2022; Ref: scu.83786

Domb and Another v Isoz: CA 29 Nov 1979

In a chain of conveyancing transactions, a solicitor sent his contract and deposit to his vendor’s solicitor, asking him to hold it to his order pending exchange. On the next day, that vendor’s solicitors agreed to an exchange of contracts over the telephone on his own purchase, but his client then told him not to proceed. The solicitor did not deliver the contract on that purchase, and claimed that under the postal rule, exchange had not taken place. The purchaser appealed a finding that there was no contract.
Held: A contract had been created. The solicitor had his client’s authority to exchange in this manner, and the contract was made at the time of the agreement on the telephone. The contract could come into existence before the posting of the second part of the contract, which would be the normal rule for postal acceptance.
Buckley LJ: ‘the essential characteristic of exchange of contracts is that each party shall have such a document signed by the other party in his possession or control so that, at his own need, he can have the document available for his own use. Exchange of a written contract for sale is in my judgment effected so soon as each part of the contract, signed by the vendor or the purchaser as the case may be, is in the actual or constructive possession of the other party or of his solicitor. Such possession need not be actual or physical possession; possession by an agent of the party or of his solicitor, in such circumstances that the party or solicitor in question has control over the document and can at any time procure its actual physical possession will, in my opinion, suffice. In such a case the possession of the agent is the possession of the principal. A party’s solicitor employed to act in respect of such a contract has, subject to express instructions, implied authority to effect exchange of contracts and so to make the bargain binding upon his client. This he can, in my judgment, do by any method which is effectual to constitute exchange.’
BRIDGE LJ: ‘A solicitor acting for a vendor or a purchaser who holds his client’s signed part of the contract has his client’s ostensible authority to effect exchange of contracts.’
Templeman LJ: ‘In my judgment a client impliedly authorises, and ostensibly authorises, his solicitor to effect exchange of contracts in such manner and by such agents as the solicitor may think fit. The client confers power to exchange, but is not interested in the machinery or method of exchange, which is a matter for the solicitor and the general law.’

Judges:

Buckley, Bridge and Templeman LJJ

Citations:

[1980] 2 WLR 565, [1980] Ch 548, [1980] 1 All ER 942

Links:

lip

Jurisdiction:

England and Wales

Citing:

CitedEccles v Bryant and Pollock CA 1947
The Plaintiff contended that a letter written by the purchaser’s solicitor which effectively set out the terms of the agreement, enclosed the part of the contract signed by the purchaser, and asked in exchange for the counter-part signed by the . .
CitedJohnson v Agnew HL 1979
The seller had obtained a summary order for specific performance of a contract for the sale of land against the buyer.
Held: The breach was continuing and was still capable of being remedied by compliance with the order for specific . .
Lists of cited by and citing cases may be incomplete.

Legal Professions, Contract, Land, Agency

Updated: 28 April 2022; Ref: scu.178200

Mercier v Clark and Walker Limited: CA 9 Jul 1997

The claimant sought leave to appeal. After their car had been repaired, there was a dispute, and they stopped their cheque. Proceedings were taken, and they lost. Eventually the garage obtained an order for the sale of the car. Mrs Mercier made an interpleader asserting the car was hers. She sought leave to appeal the failure of that application. Leave was refused.

Citations:

[1997] EWCA Civ 2056

Jurisdiction:

England and Wales

Contract, Litigation Practice

Updated: 28 April 2022; Ref: scu.142453

Staveley Industries Plc (T/A Ei Whs) v Odebrecht Oil and Gas Services Ltd: TCC 8 Mar 2001

Contracts were entered into to design, engineer and supply equipment for installation on oil and gas rigs. The contractor sought to assert that these were contracts governed by the Act, and the provisions for dispute resolution applied. The court held that the act suggested that the construction was to take place on ‘the Land’ and that there was no intention to include offshore installations within the Act.

Citations:

Gazette 08-Mar-2001

Statutes:

Interpretation Act 1978, Housing Grants Construction and Regeneration Act 1996

Jurisdiction:

England and Wales

Contract, Construction, Arbitration

Updated: 28 April 2022; Ref: scu.89517

Robinson v Commissioners of Customs and Excise: QBD 28 Apr 2000

Customs offered a reward for information, but the offer was clearly not a certainty, and there had been no intention to create a contractual or legal relationship. The informant had been clearly told that the decision as to the award would not be made by the officer, but by his superior in that officer’s discretion, and therefore no legal binding offer to make payment had been made.

Citations:

Times 28-Apr-2000

Jurisdiction:

England and Wales

Administrative, Contract, Customs and Excise

Updated: 28 April 2022; Ref: scu.88824

Pickering and Another v Deacon t/a J A McConville: CA 27 Mar 2003

The claimants appealed an order to pay their builder. They said that though unpleaded, in fact the original contract was illegal and should not be enforced. The agreement had been to inflate the cost artificially so as to increase a claim for a grant, and then to share the excess cost.
Held: There appeared to have been a conspiracy to defraud. The court should not however act upon the basis that such a conspiracy existed unless and until it was satisfied that it had all the circumstances before it. The evidence of an unpleaded fraud should not have been admitted.

Citations:

Times 19-Apr-2003, Gazette 29-May-2003

Jurisdiction:

England and Wales

Contract

Updated: 27 April 2022; Ref: scu.180874

Barclay, Curle and Co Ltd v Sir James Laing and Sons Ltd: HL 25 Nov 1907

A contracted to build and sell, and B to purchase, two ships, which were to be paid for by instalments and built under the supervision of B’s inspector. C arrested the ships when approaching completion for an alleged debt of B’s to him. A petitioned for recal of the arrestments.
Held that under the Sale of Goods Act 1893 the property in the ships depended upon the intention of the parties as expressed in the contract, and as there was nothing in the contract to show that the parties intended to transfer the property in the ships while in course of building, the property remained in A, the builder, who was therefore entitled to recal of the arrestments.

Judges:

Lord Chancellor (Loreburn), Earl of Halsbury, Lord Macnaghten, Lord James Of Hereford, Lord Robertson, and Lord Atkinson

Citations:

[1907] UKHL 87

Links:

Bailii

Jurisdiction:

England and Wales

Transport, Contract

Updated: 27 April 2022; Ref: scu.622313

S Pearson and Son Ltd v Dublin Corporation: HL 30 May 1907

P. and Son, Limited, entered into a contract with a corporation to construct certain sewage works at a certain price. The engineer of the Corporation prepared plans, which were shown by the Corporation to P. and Son, Limited. These plans misrepresented the state of the locus in an important matter, which materially affected the price agreed upon by P. and Son. The Corporation were not actually aware of the fact that the plans were inaccurate. The contract contained a clause that the contractor was to satisfy himself as to dimensions, levels, and co., and ‘was to obtain his own information on all matters which can in any way influence his tender.’ P. and Son alleged that the misrepresentations in the plans were false and fraudulent, and brought an action against the Corporation for damages for fraudulent misrepresentation.
Held (1) that the clause which provided that the contractors were to satisfy themselves applied only to inaccuracies and errors, and not to fraud, (2) that accordingly P. and Son were entitled to have an opportunity of proving fraud on the part of the engineers, and (3) that if they were successful the Corporation would be liable.
‘It matters not in respect of principal and agent (who represents but one person) which of them possess the guilty knowledge, or which of them makes the incriminating statement. If between them the misrepresentation is made so as to induce the wrong, and thereby damages are caused, it matters not which is the person who makes the representation, or which is the person who has the guilty knowledge.’

Judges:

Lord Chancellor (Loreburn), The Earl of Halsbury, Lords Ashbourne, Macnaghten, James of Hereford, Robertson, Atkinson, and Collins

Citations:

45 SLR 960

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 27 April 2022; Ref: scu.622294

Kleinwort, Sons, and Co v Dunlop Rubber Co: HL 16 Jul 1907

A. was financed by B. and Co. and C. and Co., both firms of bankers, who advanced him money on the security of goods. A. sold goods to D. and Co., and instructed them to remit the price direct to B. and Co., who had a right of security over the particular goods sold. D. and Co. by mistake remitted the price to C. and Co., who received it in good faith believing that it represented a sum due to them of a similar amount. In a previous action, reported (1905) A.C. 454), the House of Lords found D. and Co. liable to pay the sum again to B. and Co. In the present action (a jury having found in fact that what had occurred had not altered C. and Co.’s position as regarded A. for the worse), held that D. and Co. were entitled to recover the money from C. and Co. as being money paid under a mistake of fact.

Judges:

Lord Chancellor (Loreburn), Lords James of Hereford, Robertson, and Atkinson

Citations:

[1907] UKHL 633

Links:

Bailii

Jurisdiction:

England and Wales

Contract, Banking

Updated: 27 April 2022; Ref: scu.622307

Owners of SS ‘Knutsford’ v E Tillmans and Co: HL 3 Jul 1908

The plaintiffs (respondents) were the holders and indorsees of bills of lading in respect of goods carried on the s.s. ‘Knutsford’ belonging to the appellants. They asked for damages for breach of contract in failure to carry the goods to Vladivostock. The bills of lading contained the following exceptions-‘(2) . . error in judgment, negligence, or default of . . master . . whether in navigating the ship or otherwise . . ; (4) should a port be inaccessible on account of ice, . . or should entry and discharge at a port be deemed by the master unsafe in consequence of war, disturbance, or any other cause, it shall be competent for the masters to discharge goods intended for such port on the ice or at some other safe port or place at the risk and expense of the shippers, consignees, or owners of the goods. . . ‘ The appellants relied upon the portions italicised.
The master of the ‘Knutsford’ tried for three days to enter Vladivostock, but at that time it was impossible because of ice. He considered it unsafe to persist in the attempt owing to the ice and severe weather. He therefore left and discharged the goods at Nagasaki. The day after leaving the approach to Vladivostock the ice dispersed and entry became easy.
Judgment in favour of the plaintiffs was pronounced by Channell, J., and affirmed by the Court of Appeal ( Vaughan Williams, Farwell, and Kennedy, L. JJ.). The defendants appealed.
held (1) that ‘error of judgment in navigating the ship or otherwise’ does not cover the master’s erroneous view of the ship’s contractual duties; (2) that ‘inaccessible on account of ice’ means inaccessible without inordinate delay, not merely three days; (3) that ‘unsafe in consequence of war disturbance or any other cause’ does not include danger by perils of the sea.

Judges:

Lord Chancellor (Loreburn), Lords Macnagliten, James of Hereford, and Dunedin

Citations:

[1908] UKHL 691, 46 SLR 691

Links:

Bailii

Jurisdiction:

England and Wales

Transport, Contract

Updated: 26 April 2022; Ref: scu.621519

South Wales Miners’ Federation and Others v Glamorgan Goal Co and Others: HL 14 Apr 1905

Held that the fact that a federation of miners in inducing its members to break their contracts of service with their employers acted without malice and in the bona fide belief that the breach of contract would benefit both the miners and their employers, formed no defence to an action brought by the latter against the federation for damages for wrongfully procuring and inducing their workmen to break their contracts of service.

Judges:

Lord Chancellor (Halsbury), Lords Macnaghten, James of Hereford, and Lindley

Citations:

[1905] UKHL 877, 42 SLR 877

Links:

Bailii

Jurisdiction:

England and Wales

Contract, Employment

Updated: 26 April 2022; Ref: scu.621178

Assets Co Ltd v Bain and Others (Bain’s Trustees) Assets Co Ltd v Watt and Others (Phillips’ Trustees): HL 5 Jun 1905

At a distance of time ‘every intendment should be made in favour of what has been done as being lawfully and properly done.’
A compromise was made with, and a discharge from liability granted to, a contributory to a bank in liquidation ‘on the basis and on the condition of the truth, accuracy, and completeness’ of a written state of the contributory’s property and its value made in answer to printed questions. The state was declared to be true and correct to the best of his knowledge and belief. Twenty years later a reduction of the discharge was brought on the ground that the state was inaccurate, it having been discovered that the contributory had been possessed of property, at that time of doubtful value, which did not appear in the state.
Held (rev the judgment of the Court of Session) that reduction should not be granted (1) because the declaration being only to the best knowledge and belief of the declarant, it was not sufficient to prove inaccuracy, but fraudulent concealment must be established; and (2) because, as it was not a special condition of the compromise that the disclosure of the contributory’s property should be of all his effects in writing, a verbal disclosure of the property in question would have been sufficient, and it was not proved that such verbal disclosure had not been made.

Judges:

Lord Chancellor (Halsbury), and Lords Macnaghten, Davey, James of Hereford, and Robertson

Citations:

[1905] UKHL 835

Links:

Bailii

Jurisdiction:

Scotland

Contract

Updated: 26 April 2022; Ref: scu.621181

Stroms Bruks Aktie Bolag and Others v J and P Hutchison: HL 4 Aug 1905

A charter-party contained a clause, ‘penalty for non-performance of this agreement, estimated amount of freight on quantity not shipped in accordance herewith.’ The shipowner failed to send a ship for one of the shipments stipulated for. Held (aff judgment of the First Division) that the shipowner was not deprived of his right to have an award of damages commensurate with the loss sustained.
Manufacturers of wood pulp in Sweden contracted by charter-party with shipowners for the carriage of a quantity of wood pulp ‘in August-September’ (owners’ option), the vessel being entitled after loading to call at other ports, to Cardiff. They also sold the same quantity of wood pulp to vendees, manufacturers at Cardiff, ‘mode and place of delivery,’ ‘c.i.f. Penarth Dock, Cardiff,’ ‘time of delivery’ ‘August-September.’ The shipowners having failed to supply a ship, the vendees purchased at home the quantity of wood pulp and received from the charterers, as damages for breach of the contract of sale, the difference between the cost of so doing and the contract price. The charterers then sought to recover from the shipowners, who admitted the breach of their contract, but defended on the ground that the charterers were suing for special damages to which they were not entitled, inasmuch as the two contracts did not coincide, and had not in their summons sued for general damages.
Held (rev. the judgment of the First Division) that the charterers were entitled to recover, inasmuch as the ‘proper measure of the damages was the cost of replacing the goods at their place of destination at the time when they ought to have arrived, less the value of the goods in Sweden and the amount of the freight and insurance,’ and the purchases by the vendees was proof of such cost.
Opinion per curiam that there is no difference between the law of Scotland and the law of England as to the measure of damages in such circumstances. Dunlop v. Higgins (1848), 1 H.L.C. 381, adversely commented on.

Citations:

[1905] UKHL 844, 42 SLR 844

Links:

Bailii

Jurisdiction:

Scotland

Contract, Damages

Updated: 26 April 2022; Ref: scu.621189

Navig8 Chemicals Pool Inc v Glencore Agriculture Bv: CA 21 Aug 2018

The court was asked as to certain letters o indemnity given in a voyage charterparty were subject to the limitation provisions contained within the charterparty itself.

Judges:

Sir Geoffrey Vos Ch, Simon, Asplin LJJ

Citations:

[2018] EWCA Civ 1901

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

At ComCSonga Chemicals As v Navig8 Chemicals Pool Ltd ComC 2-Mar-2018
. .
Lists of cited by and citing cases may be incomplete.

Transport, Contract

Updated: 26 April 2022; Ref: scu.621169

Hadsley v Dayer-Smith: HL 5 May 1914

Where there was a clause in a contract of partnership between house agents prohibiting an outgoing partner from carrying on or engaging or being interested in a similar business within a given area, held that an outgoing partner could be restrained from advertising houses to be let within the area although his place of business was outside.

Judges:

Lords Dunedin, Atkinson, Shaw, Sumner, and Parmoor

Citations:

[1914] UKHL 647, 52 SLR 647

Links:

Bailii

Jurisdiction:

England and Wales

Contract, Company

Updated: 26 April 2022; Ref: scu.620719

The Farmers’ Mart Ltd v Milne: HL 16 Jul 1914

A firm of live-stock salesmen, agents, auctioneers, appraisers, and land-surveyors, agreed with their manager that he should be entitled, with their consent, to accept any appointment as factor, or trustee on, or other office involving the management of any estate, the fees so earned by him to be pooled with any fees or commissions earned by them for any sales or valuations in connection with such estates and the proceeds divided, one-half to him and one-half to them, ‘provided always that before any such division shall take place there shall, out of said proceeds, be paid to’ the firm ‘the balance of any debt remaining due to them from such estate, after giving credit for all sums received or falling to be received on account of such debt. . . ‘
In an action by the firm against the manager, who had left their service, calling for an accounting of the fees earned by him as factor or trustee, in particular as trustee under a certain trust-deed for behoof of creditors, held that the agreement was a pactum illicitum, as impinging on the equal distribution of assets amongst creditors in bankruptcy, and action dismissed.

Judges:

Lord Dunedin, Lord Atkinson, and Lord Shaw

Citations:

[1914] UKHL 729, 51 SLR 729

Links:

Bailii

Jurisdiction:

Scotland

Contract

Updated: 26 April 2022; Ref: scu.620725

Forrest v The Scottish County Investment Co Ltd: HL 18 Oct 1915

Under a building contract based upon plans and a detailed schedule or estimate, a builder completed certain tenements, handed them over to the proprietors, and received from the measurers and architect the final certificates for payment. On the builder suing upon the certificates the proprietors pleaded that, the work done being disconform to contract, they could not be sued upon the contract. The tenements were proved to be substantial, of good workmanship and good material, and similar in appearance to others previously erected for the same proprietors. The plea depended upon the fact that certain rybats were not of the size specified. The size was given in the schedule, but the plans did not in any way show it. The architect had instructed the builder to carry out the work as in the previously erected tenements, and had from time to time passed it.
The schedule contained this condition-‘The whole materials and workmanship to be of the best description and completed in accordance with the drawings, in an expeditious and tradesman-like manner, to the entire satisfaction of the proprietors and architect, or any person appointed to inspect the work; and power is reserved to increase, lessen, or omit any part of the work. The work will be measured when finished by J. H. Bradshaw and Craig, I.M., measurers, 122 Wellington Street, Glasgow, and charged at the rates contained in this schedule or others in proportion thereto, and in proportion to slump sum in letter of offer. Any extra prices to be revised and adjusted by the measurers to correspond with the foresaid rates.’
Held (dub. Lord Atkinson) that the architect had not exceeded his powers, that the builder was not in breach, and so was entitled to recover the sum sued for.

Judges:

The Lord Chancellor (Buckmaster), Lord Atkinson, Lord Parmoor, and Lord Wrenbury

Citations:

[1915] UKHL 7, 53 SLR 7

Links:

Bailii

Jurisdiction:

Scotland

Contract

Updated: 26 April 2022; Ref: scu.620699

Williams Brothers v E T Agius Ltd: HL 27 Mar 1914

A sold a shipload of coal to B for delivery in November at 16s. 3d. per ton. In October B sold to C, in Italy, a corresponding shipload of coals at 19s. per ton. In November C sold to A for 20s. per ton the coal he had bought from B, and ‘ceded the original usual contract of the sellers.’ A failed to give delivery of the coal in November, but in virtue of the contract with C tendered the difference between 16s. 3d. and 19s. per ton as damages to B. B claimed the difference between 16s. 3d. and 23s. 6d. per ton-the market price at the time of the breach. The arbiter, appointed under a clause in the original contract found that as B was bound to appropriate the shipment if delivered to the satisfaction of the contract with C, the amount of the damages was the difference between 16s. 3d. and 19s.
Held that the arbiter had no jurisdiction to consider a counter-claim under a foreign law, and that under the contract that he was interpreting the measure of damages was the difference between the contract and market prices at the date of breach.
Observed that the law as laid down in Rodocanachi v. Milburn, 18 Q.B.D. 67, is unaffected by the Sale of Goods Act 1893, section 51, sub-section 2. Wertheim v. Chicoutimi Pulp Company, 1911 AC 301, 48 S.L.R. 1090, distinguished.
Decision of the Court of Appeal reversed.

Judges:

Lord Chancellor (Viscount Haldane), Lords Dunedin, Atkinson, Moulton and Parker

Citations:

[1914] UKHL 604, 52 SLR 604

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 26 April 2022; Ref: scu.620709

Produce Brokers Co Ltd v Olympia Oil and Cake Co Ltd: HL 15 Nov 1915

In connection with a contract for the sale of goods a dispute had arisen between the parties as to whether a certain appropriation was good or not. The question was referred to arbitration under the clause in the contract, and a special case was stated for the opinion of the Court, in which certain questions were put to the Court, including one whether under the terms of a certain contract there could be appropriation of a cargo shipped on board the ‘C.’ to the buyers at a time when the vessel was wrecked and the cargo had become a total loss. The Court answered those questions in the negative. Thereupon the matter went back, and the arbitrators made an award in which they stated that while they ‘unreservedly accepted the said answers upon the construction of the contract as a matter of law, apart from the custom of the trade,’ they nevertheless found that there was a long-established and well-recognised custom of the trade by which in the circumstances of this contract there was an appropriation of the cargo to the buyers.
Held ( rev. decision of the Court of Appeal) that under a submission to decide disputes arising out of the contract it was competent for the arbitrators to determine the existence of a custom attaching to the particular trade, inasmuch as it was impossible without introducing the custom to decide what were the rights and liabilities under the contract of the respective parties.

Judges:

Earl Loreburn, Lords Atkinson, Parker, Sumner, and Parmoor

Citations:

[1915] UKHL 787, 53 SLR 787

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 26 April 2022; Ref: scu.620703

Clydebank and District Water Trustees v Fidelity and Deposit Co of Maryland: HL 26 Nov 1915

An insurance company granted a policy insuring water trustees against loss arising from failure on the part of a contractor duly to complete the laying of certain water-pipes. The policy contained conditions declared to be conditions-precedent to the right of the water trustees to recover thereunder, and, inter alia, this – ‘The surety shall be notified in writing of any non-performance or non-observance on the part of the contractors of any of the stipulations or provisions contained in the said contract, and on their part to be performed and observed, which may involve a loss for which the surety is responsible hereunder.’
The contract for laying the water pipes provided for the work being begun on a particular date, that so much should be done each week, and that the whole should be completed within a defined time. The contractor had not begun by the date specified, nor for some months after, and after beginning continued to fall more and more into arrear. No notice of this was sent to the insurance company. When about half the work was done and sometime after the time for completion was passed the contractor became bankrupt. The water trustees took over the work and gave notice of his failure to the insurance company. In an action by the water trustees to recover the amount contained in the policy of insurance, held ( aff. judgment of the First Division) that the contractor’s delays were non-observances of the contract of which the insurance company was entitled to notice, that the giving notice was a condition-precedent to the right to recover, and therefore that the insurance company was freed

Judges:

The Lord Chancellor (Buckmaster), Lord Atkinson, Lord Shaw, Lord Parker, and Lord Sumner

Citations:

[1915] UKHL 106, 53 SLR 106

Links:

Bailii

Jurisdiction:

Scotland

Contract

Updated: 26 April 2022; Ref: scu.620702

Anderson v Dickie: HL 22 Apr 1915

S. feued a piece of his ground to M., the feucontract containing this clause-‘Declaring . . that it shall not be lawful to the said S. or his aforesaids or the other disponees to sell or feu any part of the said ground now occupied as the lawn between the ground hereby feued and the said present mansion-house of E. P., and as marked numbers . . on the said sketch or plan endorsed hereon, excepting under the express conditions and declarations that there shall be no more than one dwelling-house, with suitable offices, on any two acres of the ground so sold or feued, and that each of the said dwelling-houses attached thereto shall be of the value of at least nine hundred pounds sterling, and be maintained in good condition and of such value in all time coming, which restriction shall also be a real burden affecting the said lands and shall operate as a servitude in favour of the said M. and his foresaids in all time coming.’
S. subsequently disponed part of his remaining land, including the parcels of the numbers mentioned in M.’s feucontract, to W., and the disposition contained this clause-‘Under the declaration that it shall not be lawful to the said W. or his foresaids to sell or feu any part of the ground occupied as the lawn between the ground feued by me to M. and the present mansion-house of E. P., excepting under the express conditions and declarations that there shall be no more than one dwelling-house, with suitable offices, on any two acres of the ground so sold or feued, and that each of the said dwelling-houses attached thereto shall be of the value of at least nine hundred pounds sterling, and be maintained in good condition and of such value in all time coming, which restriction shall be a real burden affecting the said lands, and shall operate as a servitude in favour of the said M. and his foresaids in all time coming.’
In an action by a singular successor of M. against a singular successor of W. to interdict the erection of tenement houses, held (1) that the words ‘which restriction’ in W.’s disposition must refer to the whole clause beginning ‘it shall not be lawful,’ and not to the limitation of houses to acreage, and co.; (2) that there was consequently no restriction against the building of tenements by W. or his successors on their land; and further (3) that the intended real burden was bad owing to the insufficient identification of the land to be affected.

Judges:

Earl Loreburn, Lord Kinnear, Lord Dunedin, Lord Atkinson, Lord Parker, Lord Sumner, and Lord Parmoor

Citations:

1915 SC (HL) 79, [1915] UKHL 5, [1914] SLR 614, [1915] UKHL 563, 52 SLR 563

Links:

Bailii, Bailii, Bailii

Jurisdiction:

Scotland

Citing:

Appeal fromAnderson v Dickie SCS 26-May-1914
A disposition of lands by X contained a declaration that it should not be lawful for A (the disponee) or his foresaids to sell or feu part of the lands disponed except under certain specified conditions as to the number and value of the . .

Cited by:

CitedAxis West Developments Ltd v Chartwell Land Investments Ltd HL 15-Dec-1998
(Scotland) A had granted to C an heritable and irredeemable servitude right to install services under land. A objected to the installation of a particular pipe, and sought damages to the cost of a grant of similar rights. All conditions restricting . .
Lists of cited by and citing cases may be incomplete.

Land, Contract

Updated: 26 April 2022; Ref: scu.620681

Boyd and Forrest v Glasgow and South-Western Railway Co: HL 25 Jan 1915

In 1900 a railway company issued tenders for the formation of a railway line, and in September a contract was arranged with a firm of contractors, the payment to be a stipulated lump sum. The specification included this stipulation-‘ Cuttings and Embankments.-Bores have been put down at various parts of the line, the positions of which are shown on the small scale plan, and a copy of the journals of these bores may be seen at the engineer’s office, but the company does not in any way guarantee their accuracy, or that they will be a guide to the nature of the surrounding strata. Contractors must therefore satisfy themselves as to the nature of the strata, as the company will not hold themselves liable for any claim that may be made against them on account of any inaccuracy in the journals of the bores. . . Of the probability of rock existing in any of the cuttings or other excavations to a greater extent than the quantity given in the detailed schedule, the contractor must judge, and also form his own opinion as to the nature of the strata, of the material in the various cuttings or excavations and in the base of the embankments, and price the quantities in the detailed schedule accordingly, as no allowance whatever will be made over the lump sum in the detailed schedule for these, although the material may turn out to be different from what is calculated and given in the detailed schedule.’ By the end of 1902 the contractors were aware that the material they had to deal with was very different from and more costly to treat than what they had expected and they complained-the company in fact paid them pounds 10,000 over the stipulated amount, half then and half later. The contractors continued the work, however, and completed it by May 1905. In November 1907 they proceeded to bring an action against the company, and in preparation therefor became aware that of sixty-five bores eighteen had not been made by professional borers but by employees of the company, and that in the journals four of these were not, as returned, by such employees but as edited by the company’s engineer, he having entered what he honestly believed must be meant. The engineer had also omitted four check bores which had also been put down by such employees.
Held ( rev. judgment of the Second Division) (1) that the contractors were not in a position to demand rescission of the contract, restitutio in integrum being a condition of such a remedy and being here impossible; (2) that there was no misrepresentation in the journals of the bores shown being as edited by the engineer and not the actual returns made by the men boring, what the specification contemplated being the product of the responsible officer of the company, the engineer, and he having acted honestly; (3) that even if there had been shown to have been innocent misrepresentation it was not proved to be in essentialibus inducing to the contract; (4) that the contractors could not now be heard, in the absence of fraud, on the disconformity of the material they had had to treat with what they had expected, they having after acquiring full knowledge thereof elected to proceed with the work and completed the contract.

Judges:

Earl Loreburn, Lord Atkinson, Lord Shaw, and Lord Parmoor

Citations:

[1915] UKHL 205, 52 SLR 205

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 26 April 2022; Ref: scu.620672

Johannesburg Municipal Council v D Stewart and Co (1902) Ltd and Others: HL 6 Jul 1909

A contract, declared to be an English contract enforceable in and subject to the jurisdiction of the English Courts, whereby a Scottish company undertook to supply engineering plant to the Johannesburg Municipal Council, contained this clause of reference-‘In case any dispute or difference shall arise between the purchasers and the contractors . . it shall, after the complete delivery of the material, be referred to the arbitration of a single umpire or referee to be mutually agreed upon between the parties, or failing agreement, to be nominated by the president for the time being of the Institution of Civil Engineers of London, or in the case of disputes with local contractors in Johannesburg to be nominated by the Lieutenant-Governor of the Transvaal . . . and the arbitration shall be an arbitration within the meaning of the Arbitration Act of 1889 (England) and shall be conducted in all respects as therein provided.’
A supplementary contract called ‘The Running Contract’ contained this clause of reference – ‘In the event of any dispute between the contractors and the Council under this contract, the matter shall in the first place be referred to the engineers, but if either party refuses to accept the engineers’ decision the matter in dispute shall be referred to a single arbiter or umpire to be mutually agreed upon, or failing agreement to be nominated by the Lieutenant-Governor of the Transvaal, and to hold the said arbitration in Johannesburg . . . and the arbitration shall be deemed to be an arbitration within the meaning of the Transvaal Ordinance of 1904, and shall be conducted in all respects as therein provided.’
The contractors having refused to continue the tests under the ‘Running Contract,’ the Council rejected the whole material as unsatisfactory and brought an action in the Scottish Courts in which they sought to recover the payment made to account and also two separate sums as damages under the ‘Main’ and ‘Running’ contracts respectively. The Court of Session directed the parties to prepare a stated case for the opinion of the English Courts on the ground that the scope and validity of the arbitration clauses fell to be decided by these Courts, and it was necessary for the proper disposal of the case to ascertain whether the arbitration clauses covered the dispute between the parties.
Held (1) that the question whether the dispute between the parties fell within the arbitration clauses was as much a question of fact as of law; (2) that the action should therefore have gone to proof in the ordinary way in the Scottish Courts; and (3) that these Courts would, under the law of England, have the power, but would not be under necessity, should they find the dispute to be within the contract, to refer any part thereof to arbitration if that course were convenient and in accordance with Scottish practice.
Per the Lord Chancellor-‘If the cause of action which is really established be that there has been complete repudiation and breaking of this contract, then it would not be within the arbitration clauses in either of these contracts.’
>
Opinion, per Lord Shaw, that the clauses of arbitration were executorial only and could not include a reference to an arbiter of the question whether a repudiation of the contract was justifiable, and further that the two contracts were so intermixed that procedure by arbitration was unworkable.
A Scottish company, by a contract which was declared to be deemed an English contract, contracted to supply certain engineering plant to a colonial municipal council. A bond, in English form, guaranteeing the fulfilment of the contract, was granted by an individual. The municipal council brought an action of damages for breach or non-fulfilment against the company and also against the guarantor, and used arrestments on the dependence against the latter.
Held: (rev. First Division) that the action as against the guarantor was not premature, and that the arrestments should not be recalled. Question whether if the law of Scotland alone had been in question the decision would have been otherwise.

Judges:

The Lord Chancellor (Loreburn), Lord James of Hereford, Lord Atkinson, Lord Gorell, and Lord Shaw of Dunfermline

Citations:

47 SLR 20, [1909] UKHL 20

Links:

Bailii

Jurisdiction:

Scotland

Contract

Updated: 25 April 2022; Ref: scu.620588

North Midland Building Ltd v Cyden Homes Ltd: CA 30 Jul 2018

The court considered the validity of a clause in a building contract which provided that, where there was a delay caused by an event for which the contractor was responsible, and that delay was concurrent with a delay for which the employer was responsible, such concurrent delay would not be taken into account when calculating any extension of time to the contract completion date. It was the appellant contractor’s case that this clause was contrary to what has come to be known as ‘the prevention principle’ and therefore ineffective.

Citations:

[2018[ EWCA Civ 1744

Links:

Bailii

Jurisdiction:

England and Wales

Construction, Contract

Updated: 25 April 2022; Ref: scu.620472

Cleveland Bridge Uk Ltd v Sarens (Uk) Ltd: TCC 18 Apr 2018

Citations:

[2018] EWHC 827 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoCleveland Bridge UK Ltd v Sarens (UK) Ltd TCC 10-Apr-2018
The parties sought a final determination from the court, following a decision by an Adjudicator, of a dispute over the terms and interpretation of a subcontract. . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 25 April 2022; Ref: scu.620118

Haberdashers’ Aske’s Federation Trust Ltd v Lakehouse Contracts Ltd and Others: TCC 19 Mar 2018

Proper construction of insurance provisions arising out of project-wide cover for a development that consisted of extension and other works to a school in Lewisham.

Citations:

[2018] EWHC 558 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Contract, Insurance

Updated: 25 April 2022; Ref: scu.620114

Tees Esk and Wear Valleys NHS Foundation Trust v Three Valleys Healthcare Ltd and Another: TCC 29 Jun 2018

PFI project at Roseberry Park Hospital in Middlesbrough. The claimant NHS Foundation Trust (‘the Trust’) seeks declarations as to the validity of notices served by the Trust pursuant to a funders direct agreement, with a view to terminating the project agreement, and related relief.

Citations:

[2018] EWHC 1659 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 25 April 2022; Ref: scu.620129

Cleveland Bridge UK Ltd v Sarens (UK) Ltd: TCC 10 Apr 2018

The parties sought a final determination from the court, following a decision by an Adjudicator, of a dispute over the terms and interpretation of a subcontract.

Citations:

[2018] EWHC 751 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

See AlsoCleveland Bridge Uk Ltd v Sarens (Uk) Ltd TCC 18-Apr-2018
. .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 25 April 2022; Ref: scu.620117

Triumph Controls UK Ltd and Another v Primus International Holding Co and Others: TCC 7 Feb 2018

The claimants claimed some US$65 million against the defendants for breaches of warranty following the sale of the defendants’ aerospace business to the claimants via a share capital purchase. It is said that the defendants failed to disclose various aspects of the business, including alleged operational failings at, and lack of accreditation of, their facility at Farnborough.

Judges:

Coulson J

Citations:

[2018] EWHC 176 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 25 April 2022; Ref: scu.620111

Hellenische Republik v Kuhn: ECJ 4 Jul 2018

Opinion – Reference for a preliminary ruling – Regulation (EU) No 1215/2012 – Jurisdiction in civil and commercial matters – Scope – Article 1 (1) – Concept of’ civil and commercial matters’ – Obligations issued by a Member State – Participation to the restructuring of the public debt – Unilateral and retroactive modification of the conditions of the loan – Clauses of collective action – Recourse exercised against the State by private creditors holding these obligations as natural persons – Responsibility of the State for acta jure imperii – Special powers – Article 7 (1)(a) – Jurisdiction in contractual matters – Concept of ‘contractual matters’ – Concept of ‘free commitment of one party to another’ – Concept of ‘place of performance of the obligation on which the application is based ‘- Subscription conditions of the State bond – Successive transfers of the debt – Effective location of the’ principal obligation ‘- Payment of interest

Citations:

ECLI:EU:C:2018:528, C-308/17, [2018] EUECJ C-308/17 – O

Links:

Bailii

Jurisdiction:

European

Jurisdiction, Contract

Updated: 25 April 2022; Ref: scu.620027

Mercato Sports (UK) Ltd and Another v The Everton Football Club Company Ltd: ChD 12 Jul 2018

Claim by football agent for commission under implied contract on facilitating the signing of a player by the club.

Judges:

Eyre QC HHJ

Citations:

[2018] EWHC 1567 (Ch)

Links:

Bailii

Statutes:

Arbitration Act 1996

Jurisdiction:

England and Wales

Arbitration, Contract

Updated: 25 April 2022; Ref: scu.619896

Gunvor Sa v Sky Oil and Gas Ltd (Previously Known As Keystone Trade Oil and Gas Group (UK) Ltd): ComC 16 Apr 2018

Claim as seller for damages from the Defendant as buyer for breach of a contract for the sale CIF Hodeidah of 55,307 mt of gasoline to be delivered by a ship-to-ship transfer from mother vessel MT Hong Ze Hu.

Citations:

[2018] EWHC 1189 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 25 April 2022; Ref: scu.619809

Boyd and Forrest v The Glasgow and South-Western Railway Co: HL 16 May 1912

A railway company entered into a written contract with a firm of contractors for the construction of a railway for a lump sum. The specification attached to the contract and forming its basis stated that bores had been put down at various parts of the line, and that a copy of the journal of these bores might be seen at the engineer’s office, but that the company did not guarantee their accuracy, and would not hold themselves liable for any claim on account of any inaccuracy in the journal. According to the specification, only three descriptions of material were to be excavated, viz., solid rock, broken or loose rock, and soft. In the course of the work the contractors found that much of the material classified as ‘soft’ contained rock, and it turned out that the bores had not been made by professional borers, but by employees of the railway who had been engaged in similar work before, and that the journal of bores had not been prepared by them but was compiled in the engineer’s office from letters written by them. It appeared further that it did not accurately record the contents of these letters, but was the engineer’s interpretation of the information these letters purported to convey, and that in particular a substance reported in three instances as ‘black ban’ or ‘hard black ban,’ and in five instances as ‘rock,’ was changed into ‘black blaes’ and classified as ‘soft.’ In a petitory action at the instance of the contractors against the railway company for the amount of their loss under the contract, held ( rev. judgment of the Second Division) that the contract had not been induced by the fraud of the defenders in respect that the engineer honestly believed that the journal of bores correctly set forth the substance found, and corrected a misdescription of the borers as to the nature of that substance.

Citations:

[1912] UKHL 735, 49 SLR 735

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 25 April 2022; Ref: scu.619242

Goodlife Foods Ltd v Hall Fire Protection Ltd: CA 18 Jun 2018

The court considered an exclusion clause in the standard terms of a specialist fire suppression contractor. The issues are whether the clause was incorporated into the contract between the parties and, if so, whether the clause was reasonable within the meaning of the 1977 Act.

Citations:

[2018] EWCA Civ 1371

Links:

Bailii

Statutes:

Unfair Contract Terms Act 1977

Jurisdiction:

England and Wales

Contract

Updated: 24 April 2022; Ref: scu.618377

Walker and Others v Mills and Another: ChD 17 May 2018

Claim for sums said to be due under an Introduction Agreement. Either the First Defendant or the Second Defendant were said to be liable to make payments to the First Claimant or to the Second or Third Claimants in respect of introductions whereby the Defendants were introduced to W resulting in payment being obtained by the Defendants for services provided to W. In addition, the Claimants seek a declaration that the First Defendant held shares and loan notes in a company on trust as to two-thirds for himself and one-third for the First Claimant with the consequence that the First Claimant is entitled to one-third of the proceeds of the sale of those shares and loan notes.

Citations:

[2018] EWHC 998 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Contract

Updated: 22 April 2022; Ref: scu.616906

Lifestyle Equities Cv and Another v Sportsdirect.Com Retail Ltd and Others (No 1): ChD 20 Apr 2018

Citations:

[2018] EWHC 728 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

See AlsoLifestyle Equities Cv and Another v Sportsdirect.Com Retail Ltd and Others (No 2) ChD 20-Apr-2018
. .
Lists of cited by and citing cases may be incomplete.

Intellectual Property, Contract

Updated: 22 April 2022; Ref: scu.616129

Lifestyle Equities Cv and Another v Sportsdirect.Com Retail Ltd and Others (No 2): ChD 20 Apr 2018

Citations:

[2018] EWHC 962 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoLifestyle Equities Cv and Another v Sportsdirect.Com Retail Ltd and Others (No 1) ChD 20-Apr-2018
. .
Lists of cited by and citing cases may be incomplete.

Intellectual Property, Contract

Updated: 22 April 2022; Ref: scu.616130

Gujra v Roath and Another: QBD 19 Apr 2018

The claimant appealed from the striking out of his claim. He said that he had burned a car belonging to the defendant at his request. The court had said that if the request had been made as asserted then he must have known that the arrangement would form the basis of an intended insurance fraud.
Held: The appeal failed, though the court should be slow to look to find prima facie dishonesty at a preliminary hearing.

Judges:

Martin Spencer J

Citations:

[2018] EWHC 854 (QB), [2018] WLR(D) 235

Links:

Bailii, WLRD

Jurisdiction:

England and Wales

Contract, Torts – Other

Updated: 13 April 2022; Ref: scu.609111

Consorzio Italian Management E Catania Multiservizi SpA v Rete Ferroviaria Italiana SpA: ECJ 19 Apr 2018

Judgment – Reference for a preliminary ruling – Procurement procedures of entities operating in the water, energy, transport and postal services sectors – Directive 2004/17/EC – Obligation to review prices after the award of the contract – No such obligation in Directive 2004/17/EC or arising from the general principles underlying Article 56 TFEU and Directive 2004/17/EC – Cleaning and maintenance services linked to railway transport operations – Article 3(3) TEU – Articles 26, 57, 58 and 101 TFEU – Lack of sufficient information concerning the factual context of the dispute in the main proceedings and the reasons justifying the need for a reply to the questions referred – Inadmissibility – Article 16 of the Charter of Fundamental Rights of the European Union – Provision of national law not implementing EU law – Lack of jurisdiction

Citations:

CLI:EU:C:2018:264, [2018] EUECJ C-152/17

Links:

Bailii

Jurisdiction:

European

Utilities, Contract

Updated: 13 April 2022; Ref: scu.609052

Howie v Anderson: 1848

The court considered the approach of the Scots courts to anticipatory breach of contract, or renunciation.

Citations:

(1848) 10 D 355

Jurisdiction:

Scotland

Cited by:

CitedBunge Sa v Nidera Bv SC 1-Jul-2015
The court considered the effect of the default clause in a standard form of contract which is widely used in the grain trade. On 10 June 2010 the respondents, Nidera BV, whom I shall call ‘the buyers’, entered into a contract with the appellants, . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 12 April 2022; Ref: scu.570728

Fagan v Green and Edwards Ltd: 1926

Citations:

[1926] 1 KB 102

Jurisdiction:

England and Wales

Citing:

CitedTurner v Civil Supply Association Ltd 1926
The defendants were furniture removers and warehousemen, and they entered into a contract to remove the plaintiff’s furniture from London to Hailsham. The contract was made subject to various conditions. The plaintiff’s goods were loaded on to the . .

Cited by:

Not FollowedHollier v Rambler Motors (AMC) Ltd CA 19-Nov-1971
The plaintiff left his car with the defendant garage for repair. Whilst there it was substantially damaged by fire. The defendant sought to rely upon their terms which would negative liability, saying that the terms had been incorporated by . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 12 April 2022; Ref: scu.566890

Frampton v Coulson: 1799

A request laid in the declaration to pay the debt before it is due is not material. Vide 1 Saund. 33, when it is material to aver a request.

Citations:

[1799] EngR 161, (1799) 1 Wils KB 33, (1799) 95 ER 476

Links:

Commonlii

Jurisdiction:

England and Wales

Contract

Updated: 12 April 2022; Ref: scu.347988

Regina v John Eagleton (No 2): 1854

The defendant contracted in writing with the guardians of a parish to supply and deliver for a certain term to the out-door poor, at such times as the guardians should direct, loaves of bread of three and a half pounds weight each. The guardians were, during thesaid term, to pay the defendant after certain rates and prices for the bread so supplied, and of which a bill of particulars should have been sent. The contract contained a provision that in case the defendant broke the terms of his contract in any of the ways therein named, one of which was by a deficiency in the weight stated and charged for in the said bill of particulars, the guardians might employ other persons to supply the bread, and charge the defendant with the costs of such supply above the price contracted for, and might retain any moneys due to te defendant under the contract at the time of such breach towards such costs, or the damages which the board might sustain, and might also put in suit against the defendant a bond which he then executed, and which was conditioned for the due performance of is contract. The indictment contained ten counts, the first seven of which were in substance the same, and charged the defendant with a common law misdemeanour , in supplyimg and delivering, as such contracor, loaves of bread to different poor persons which loaves were deficient in weight, intending to injure and defraud such poor persons and to deprive them of proper and sufficient food and sustenance, and to endanger their healths and constitutions, and to cheat and defraud the said guardians.

Citations:

[1854] EngR 35, (1854-55) Dears 515, (1854) 169 ER 826

Links:

Commonlii

Jurisdiction:

England and Wales

Cited by:

see AlsoRegina v John Eagleton (No 1) 1854
. .
Lists of cited by and citing cases may be incomplete.

Crime, Contract

Updated: 12 April 2022; Ref: scu.292892

Regina v John Eagleton (No 1): 1854

Citations:

[1854] EngR 34, (1854) Dears 376, (1854) 169 ER 766

Links:

Commonlii

Jurisdiction:

England and Wales

Citing:

see AlsoRegina v John Eagleton (No 2) 1854
The defendant contracted in writing with the guardians of a parish to supply and deliver for a certain term to the out-door poor, at such times as the guardians should direct, loaves of bread of three and a half pounds weight each. The guardians . .

Cited by:

CitedRegina v Gulliver (orse Gullefer / Gullerfer) CACD 1990
The defendant appealed against his conviction of the attempted theft of his stake from a bookmaker at a greyhound racetrack. The dog which the appellant had backed was not doing well. During the race the appellant climbed on to a fence in front of . .
Lists of cited by and citing cases may be incomplete.

Crime, Contract

Updated: 12 April 2022; Ref: scu.292891

Samuels v Davis: 1943

When a dentist agrees to make a set of false teeth for a patient, there is an implied warranty that they will fit his gums.

Citations:

[1943] K.B. 526

Jurisdiction:

England and Wales

Cited by:

CitedGreaves and Co (Contractors) Ltd v Baynham Meikle and Partners CA 1975
Consultant engineers were instructed to design a warehouse, the first floor of which, as they knew, was to be used for storing drums of oil that would be moved around by fork-lift trucks. The warehouse was built to the engineers’ design but after a . .
CitedPlatform Funding Ltd v Bank of Scotland Plc (Formerly Halifax Plc) CA 31-Jul-2008
The parties disputed the extent of duty owed by a surveyor to a lender relying on his valuation of a property to be loaned.
Held: The valuer’s appeal failed. The valuer had valued the wrong property, after being misled by the borrower. The . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 12 April 2022; Ref: scu.279929

Bentsen v Taylor Sons and Co: 1893

The court was asked as to the test of the difference between a contractual condition and a warranty. Bowen LJ said: ‘There is no way of deciding that question except by looking at the contract in the light of the surrounding circumstances and then making up one’s mind whether the intention of the parties, as gathered from the instrument itself, will best be carried out by treating the promise as a warranty sounding only in damages or as a condition precedent by the failure to perform which the other party is relieved of his liability’.

Judges:

Bowen LJ

Citations:

[1893] 2 QB 281

Cited by:

CitedHong Kong Fir Shipping Co v Kawasaki Kisen Kaisha Ltd CA 20-Dec-1961
The plaintiffs had recently acquired the ship the ‘Hong Kong Fir’ and contracted to charter it to the defendants, but being late in delivering it, the defendants cancelled the charterparty contract. The plaintiffs said the repudiation was wrongful, . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 12 April 2022; Ref: scu.266196

North Western Salt Co Ltd v Electrolytic Alkali Co Ltd: CA 1913

A restrictive agreement was challenged. Held (majority): the agreement was in restraint of trade, and so unenforceable, despite the defendants’ failure to plead this defence. Farwell LJ said: ‘In the present case, no circumstances in my opinion could justify such a contract made for the mere purpose of raising prices, with the inseparable incident of depriving the members of the public of the choice of manufacturers, while hoodwinking them into the belief that such choice is open to them.’

Citations:

[1913] 3 KB 422

Jurisdiction:

England and Wales

Cited by:

Appeal fromNorth Western Salt Co Ltd v Electrolytic Alkali Co Ltd HL 1914
Appeal allowed. The onus of demonstrating that a restraint is reasonable as between the interested parties is on the party alleging it to be so. The Court should be slow to strike down clauses freely negotiated between parties of equal bargaining . .
CitedNorris v United States of America and others HL 12-Mar-2008
The detainee appealed an order for extradition to the USA, saying that the offence (price-fixing) was not one known to English common law. The USA sought his extradition under the provisions of the Sherman Act.
Held: It was not, and it would . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 12 April 2022; Ref: scu.270734

R Pagnan and Fratelli v Corbisa Industrial Agropacuaria Limitada: CA 1970

Corbisa sold maize to Pagnan on cif terms, with extensions, the shipment period ended on 22 August 1965. The sellers failed to ship in time. On 21 September 1965 the parties met and the buyers agreed to accept a consignment on a named vessel if satisfied with its condition on arrival at Venice. Part was in bad condition when it landed, and was rejected. A decree also sequestred part of the cargo for the recovery of freight and premiums advanced and for reimbursement of damages for non-fulfilment. The sellers repaid the advances, and the sequestration was lifted pro tanto, leaving 700 metric tons under sequestration in relation to the claim for damages. The parties went on to agree that the buyers would purchase the rejected goods ex silo Trieste, at a price which the arbitrators found was unduly depressed by reason of the sequestration: so much so that it was below the market price. The arbitrators also found: ‘The purchase of 13 November 1965 formed part of a continuous dealing with the situation in which the buyers found themselves, and was not an independent or disconnected transaction. By such purchase the buyers diminished and mitigated any loss which they might have suffered.’ The arbitrators dismissed the claim. The buyers appealed by case stated. At first instance Roskill J. upheld the award.
Held: The award stood. Section 51(3) was not applied because the buyers had in fact been able to go out into the market and purchase a substitute cargo at a lesser price than the contract price or the market value at the relevant time.
Salmon LJ: ‘The principle of law is that where a buyer wrongfully neglects or refuses to accept and pay for the goods or a seller wrongfully neglects or refuses to deliver the goods to the buyer, the innocent buyer or seller as the case may be may maintain an action for damages for breach of contract. The measure of damage in each case is the estimated loss directly and naturally resulting in the normal course of events from the breach of contract. Where there is an available market for the goods, the measure of damage is prima facie to be ascertained by the difference between the contract price and the market price at the date of the breach: see section 50 and 51 of the Sale of Goods Act, 1893. The two authorities relied on by Mr. Goff do no more than illustrate instances in which the prima facie rule relating to the measure of damage applies. In such cases the innocent party is not bound to go on the market and buy or sell at the date of the breach. Nor is he bound to gamble on the market changing in his favour. He may wait, if he chooses; and if the market turns against him this cannot increase the liability of the party in default; similarly if the market turns in his favour, the liability of the party in default is not diminished. Normally if the innocent party goes on to the market and buys or sells after the date of the breach, this is res inter alios acta so far as the party in default is concerned. The present case, however, is quite different. The purchase of 13 November 1965 was certainly not inter alios acta ; it was between the self-same buyers and sellers who were parties to the contract of 20 May 1965 and it related to the self-same goods that were the subject-matter of that contract. Moreover, as already stated, the tribunal found that it was not an independent or disconnected transaction but formed part of a continuous dealing between the parties; and these findings of fact cannot be challenged in this court. Accordingly the prima facie rule for ascertaining the measure of damages cannot apply because the buyers suffered no loss or damage but instead made a handsome profit in spite of the sellers’ breach.’ and
‘But the buyer cannot have his cake and eat it, as these buyers are seeking to do. They went through the motions of rejecting the goods in October 1965. Indeed they did, in law, reject them. They did so, however, in the confident expectation that, as a result of their rejection and the sequestration order, they would be able to negotiate a new agreement under which they would acquire the goods at a price favourable to themselves. This they did by their purchase of November 13. The price was substantially below the market price and their resulting profit certainly exceeded the difference between the May contract price as varied and the prevailing market price at all relevant times. Damages for breach of contract are awarded for loss suffered. Here the buyers suffered no loss. It is only by looking in isolation at the sellers’ failure to deliver sound goods that the buyers’ claim is even arguable. This failure cannot in my view properly be looked at in isolation because together with the purchase of November 13 which arose out of the situation in which the buyers found themselves, it formed one continuous dealing between the same parties in respect of the same goods. As a result of this dealing, looked at as a whole, the buyers, notwithstanding the sellers’ breach, made a profit and no loss. To allow the buyers’ claim would in my view be contrary alike to justice, common sense and authority. I would accordingly dismiss the appeal’

Judges:

Salmon LJ

Citations:

[1970] 1 WLR 1306

Statutes:

Sale of Goods Act 1893 51(3)

Jurisdiction:

England and Wales

Citing:

CitedJamal v Moolla Dawood, Sons and Co PC 3-Nov-1915
The plaintiff claimed damages from the buyer for his failure to accept shares contracted to be taken on a particular date. Two months after that date the sellers began to re-sell the shares on a rising market.
Held: Damages for breach of . .
Lists of cited by and citing cases may be incomplete.

Contract

Updated: 12 April 2022; Ref: scu.242130