Hughes v Pendragon Sabre Ltd (t/a Porsche Centre Bolton)

Hughes v Pendragon Sabre Ltd (t/a Porsche Centre Bolton)

A binding contract existed for the sale of a Porsche 911 GT3 RS4, subject to allocation, with a collateral contract guaranteeing allocation to Mr Hughes if available. Pendragon breached this contract by selling the allocated vehicle to another customer. Damages are awarded based on the difference between contract price and the value of the nearest equivalent vehicle, given the absence of an available market.

Parties
Appellant/claimant: Kevin Hughes; Respondent/defendant: Pendragon Sabre Limited T/A Porsche Centre Bolton
Jurisdiction
England and Wales
Judgment Date
20 January 2016
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Agreement to Agree, Collateral Contract, Damages for Non Delivery, Measure of Damages, Future Goods, Variation of Contract, Equitable Interest
Contract Law Sale of Goods Agreement to Agree Collateral Contract Damages for Non Delivery Measure of Damages Future Goods Variation of Contract +1 more

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Parties

Kevin Hughes

Appellant/claimant

Pendragon Sabre Limited T/A Porsche Centre Bolton

Respondent/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the parties entered a binding contract or merely an agreement to agree
  2. 2 Existence and effect of a collateral contract overriding standard terms
  3. 3 Measure of damages for non-delivery where no available market

Ratio Decidendi

A binding contract existed for the sale of a Porsche 911 GT3 RS4, subject to allocation, with a collateral contract guaranteeing allocation to Mr Hughes if available. Pendragon breached this contract by selling the allocated vehicle to another customer. Damages are awarded based on the difference between contract price and the value of the nearest equivalent vehicle, given the absence of an available market.

Court Disposition

Appeal allowed

Orders

  • Mr Hughes awarded damages of £35,000