Air Studios (Lyndhurst) Ltd (t/a Air Entertainment Group) v Lombard North Central Plc

Air Studios (Lyndhurst) Ltd (t/a Air Entertainment Group) v Lombard North Central Plc

A binding contract was concluded by email on 19 August 2011 for the sale of all equipment under the three leases for £100,000 plus VAT, with sufficient certainty as to subject matter and terms. Lombard's subsequent refusal to perform was a repudiatory breach. As there was no available market for the specific equipment, damages were assessed by reference to the cost of acquiring the nearest equivalent second-hand equipment, resulting in an award of £40,735.

Parties
Claimant: Air Studios (Lyndhurst) Limited T/A Air Entertainment Group; Defendant: Lombard North Central PLC
Jurisdiction
England and Wales
Judgment Date
09 November 2012
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the claimant
Legal Topics
Formation of Contract, Certainty of Terms, Damages for Breach of Contract, Available Market, Sale of Goods
Contract Law Commercial Law Formation of Contract Certainty of Terms Damages for Breach of Contract Available Market Sale of Goods

Case Brief

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Parties

Air Studios (Lyndhurst) Limited T/A Air Entertainment Group

Claimant

Lombard North Central PLC

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether a binding contract was concluded by email on 19 August 2011 for the sale of equipment
  2. 2 Whether the contract was void for uncertainty
  3. 3 What damages are recoverable for breach of contract

Ratio Decidendi

A binding contract was concluded by email on 19 August 2011 for the sale of all equipment under the three leases for £100,000 plus VAT, with sufficient certainty as to subject matter and terms. Lombard's subsequent refusal to perform was a repudiatory breach. As there was no available market for the specific equipment, damages were assessed by reference to the cost of acquiring the nearest equivalent second-hand equipment, resulting in an award of £40,735.

Court Disposition

Judgment for the claimant

Orders

  • Lombard to pay Air Studios £40,735 in damages
  • Lombard to pay interest on the damages