Hughes v Pendragon Sabre Ltd (t/a Porsche Centre Bolton) [2016] EWCA Civ 18 (20 January 2016)

Hughes v Pendragon Sabre Ltd (t/a Porsche Centre Bolton) [2016] EWCA Civ 18 (20 January 2016)

A binding contract for the sale of a Porsche 911 GT3 RS4 existed between Hughes and Pendragon, subject to allocation, with price and specification determinable by contract mechanisms and law. A collateral contract guaranteed Hughes the first allocation if Pendragon received one. Pendragon breached this contract by selling the allocated vehicle to another. Damages are assessed as the difference between the contract price (£135,000) and the cost of the nearest equivalent vehicle (£170,000), amounting to £35,000.

Citation
[2016] EWCA Civ 18
Parties
Appellant/claimant: Hughes; Respondent/defendant: Pendragon Sabre Limited T/A Porsche Centre Bolton
Jurisdiction
England and Wales
Judgment Date
20 January 2016
Procedural Posture
Civil Appeal / Appeal From County Court Judgment
Outcome
Appeal allowed
Legal Topics
Sale of Goods, Collateral Contract, Damages for Non Delivery, Agreement to Agree, Measure of Damages
Contract Law Commercial Law Sale of Goods Collateral Contract Damages for Non Delivery Agreement to Agree Measure of Damages

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Parties

Hughes

Appellant/claimant

Pendragon Sabre Limited T/A Porsche Centre Bolton

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From County Court Judgment

Legal Issues

  1. 1 Whether there was a binding contract for the sale of a Porsche 911 GT3 RS4 between Hughes and Pendragon
  2. 2 Whether a collateral contract existed guaranteeing allocation of the vehicle to Hughes if allocated to Pendragon
  3. 3 What is the appropriate measure of damages for non-delivery where no available market exists

Ratio Decidendi

A binding contract for the sale of a Porsche 911 GT3 RS4 existed between Hughes and Pendragon, subject to allocation, with price and specification determinable by contract mechanisms and law. A collateral contract guaranteed Hughes the first allocation if Pendragon received one. Pendragon breached this contract by selling the allocated vehicle to another. Damages are assessed as the difference between the contract price (£135,000) and the cost of the nearest equivalent vehicle (£170,000), amounting to £35,000.

Court Disposition

Appeal allowed

Orders

  • Judgment for Hughes
  • Damages awarded to Hughes in the sum of £35,000