Readie Construction Ltd v Geo Quarries Ltd [2021] EWHC 3030 (QB) (12 November 2021)

Readie Construction Ltd v Geo Quarries Ltd [2021] EWHC 3030 (QB) (12 November 2021)

Clause 4.1 of the contract, requiring payment in full without deduction or withholding whatsoever on any account, is effective to exclude the defence of abatement, even where goods are alleged to be defective. Once there has been bona fide, purported delivery under the contract, the obligation to pay arises, and the buyer cannot withhold payment on the basis of non-conformity. The contract also satisfies section 49(2) of the Sale of Goods Act 1979, as payment is due on a day certain irrespective of delivery, entitling the seller to claim the price.

Citation
[2021] EWHC 3030 (QB)
Parties
Appellant/defendant: Readie Construction Limited; Respondent/claimant: Geo Quarries Limited
Jurisdiction
England and Wales
Judgment Date
12 November 2021
Procedural Posture
Appeal (from Summary Judgment) / High Court (queen's Bench Division) – Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Sale of Goods, Abatement, Summary Judgment, Interpretation of Contractual Terms, Retention of Title, Section 49 Sale of Goods Act 1979
Contract Law Commercial Law Sale of Goods Abatement Summary Judgment Interpretation of Contractual Terms Retention of Title Section 49 Sale of Goods Act 1979

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Parties

Readie Construction Limited

Appellant/defendant

Geo Quarries Limited

Respondent/claimant

Procedural Posture

Appeal (from Summary Judgment) / High Court (queen's Bench Division) – Judgment on Appeal

Legal Issues

  1. 1 Whether clause 4.1 of the contract excludes the defence of abatement for defective goods
  2. 2 Whether Geo Quarries Limited can claim the price under section 49(2) of the Sale of Goods Act 1979

Ratio Decidendi

Clause 4.1 of the contract, requiring payment in full without deduction or withholding whatsoever on any account, is effective to exclude the defence of abatement, even where goods are alleged to be defective. Once there has been bona fide, purported delivery under the contract, the obligation to pay arises, and the buyer cannot withhold payment on the basis of non-conformity. The contract also satisfies section 49(2) of the Sale of Goods Act 1979, as payment is due on a day certain irrespective of delivery, entitling the seller to claim the price.

Court Disposition

Appeal dismissed

Orders

  • Summary judgment in favour of Geo Quarries Limited for £224,091.52 is upheld.
  • Readie Construction Limited to pay the sum as ordered by the County Court.