Canadian Gas Powder and Launches v. Orr Bros.

Canadian Gas Powder and Launches v. Orr Bros.

The trial judge found, and the appellate courts affirmed, that a warranty (express or implied) existed that the machinery would run properly and be fit for the special purpose; the seller failed to perform that warranty and thus the buyer was entitled to rescind and recover payments with interest, so the seller's appeal failed.

Citation
(1911) 46 SCR 636
Parties
Appellant (plaintiff): Canadian Gas Power and Launches; Respondent (defendant): Orr Brothers
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 December 1911
Procedural Posture
Sale of Goods / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Final Judgment Dismissed
Outcome
Appeal dismissed with costs
Legal Topics
Express Warranty, Implied Warranty, Fitness for Purpose, Breach of Warranty, Acceptance and Risk
Source Language
English
Sale of Goods Contract Law Warranty Express Warranty Implied Warranty Fitness for Purpose Breach of Warranty Acceptance and Risk

Case Brief

Summary, issues, holding and outcome

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Parties

Canadian Gas Power and Launches

Appellant (plaintiff)

Orr Brothers

Respondent (defendant)

Procedural Posture

Sale of Goods / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Final Judgment Dismissed

Legal Issues

  1. 1 Whether there was an express or implied warranty that the engine and dynamo would "run properly" and be fit for the special purpose
  2. 2 Whether the seller fulfilled contractual conditions entitling it to the balance of the price
  3. 3 Whether the buyers, knowing the capabilities, accepted the goods and thereby assumed the risk of failure

Ratio Decidendi

The trial judge found, and the appellate courts affirmed, that a warranty (express or implied) existed that the machinery would run properly and be fit for the special purpose; the seller failed to perform that warranty and thus the buyer was entitled to rescind and recover payments with interest, so the seller's appeal failed.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Judgment for respondents on counterclaim ordering return of money paid on account with interest (trial judgment affirmed)