Saint John Tug Boat Co. Ltd. v. Irving Refining Ltd.

Saint John Tug Boat Co. Ltd. v. Irving Refining Ltd.

The defendant's continued use of the tug with knowledge of the invoiced per diem charge and failure to disown or terminate the service constituted objective acceptance by conduct, thereby creating an implied contract obliging the defendant to pay the invoices through February 28, 1962, subject to the handling charge adjustment.

Citation
[1964] SCR 614
Parties
Plaintiff/appellant: Saint John Tug Boat Co. Ltd.; Defendant/respondent: Irving Refining Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
29 June 1964
Procedural Posture
Contract / Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick, Appeal Division
Outcome
Appeal allowed and trial judgment restored; cross-appeal dismissed.
Legal Topics
Acceptance by Conduct, Implied Contract, Offer and Acceptance, Acquiescence, Commercial Hiring of Services, Damages
Source Language
English
Contract Acceptance by Conduct Implied Contract Offer and Acceptance Acquiescence Commercial Hiring of Services Damages

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Parties

Saint John Tug Boat Co. Ltd.

Plaintiff/appellant

Irving Refining Ltd.

Defendant/respondent

Procedural Posture

Contract / Appeal to the Supreme Court of Canada From the Supreme Court of New Brunswick, Appeal Division

Legal Issues

  1. 1 Whether defendant's acquiescence and continued use of the tug constituted objective acceptance of the appellant's offer by conduct
  2. 2 Whether an implied contract arose obliging the defendant to pay the invoiced per diem rate through February 28, 1962
  3. 3 Whether liability was limited to earlier dates argued by respondent or to the port summer season ending December 15, 1961

Ratio Decidendi

The defendant's continued use of the tug with knowledge of the invoiced per diem charge and failure to disown or terminate the service constituted objective acceptance by conduct, thereby creating an implied contract obliging the defendant to pay the invoices through February 28, 1962, subject to the handling charge adjustment.

Court Disposition

Appeal allowed and trial judgment restored; cross-appeal dismissed.

Orders

  • Judgment of the trial court restored in favour of the plaintiff for amounts invoiced through February 28, 1962 subject to adjustment for handling charges
  • Appeal allowed with costs to the appellant in this Court and in the Appeal Division