VP Plc v Megarry [2012] NIQB 22 (29 February 2012)

VP Plc v Megarry [2012] NIQB 22 (29 February 2012)

The agreement for sale in May 2008 included a conditional discount dependent on payment of rental charges. The defendants' mistaken belief that rental charges had been waived does not alter the objective construction of the contract. Equity requires that the defendants forfeit the discount for non-payment of rental charges.

Citation
[2012] NIQB 22
Parties
Plaintiff: VP plc; Defendants: Thomas Megarry and Joan Megarry trading as T G Megarry
Jurisdiction
Northern Ireland
Judgment Date
29 February 2012
Procedural Posture
Civil / Judgment After Trial
Outcome
judgment for the plaintiff
Legal Topics
Mistake in Contract, Conditional Discounts, Objective Interpretation of Contracts, Equitable Remedies
Contract Law Equity Mistake in Contract Conditional Discounts Objective Interpretation of Contracts Equitable Remedies

Case Brief

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Parties

VP plc

Plaintiff

Thomas Megarry and Joan Megarry trading as T G Megarry

Defendants

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the defendants were liable for rental charges under the hire agreement for the HB80 Hydroburst machine
  2. 2 Whether the conditional discount on the purchase price was forfeited due to non-payment of rental charges
  3. 3 Whether the defendants' mistaken belief that rental charges had been waived could be a defence

Ratio Decidendi

The agreement for sale in May 2008 included a conditional discount dependent on payment of rental charges. The defendants' mistaken belief that rental charges had been waived does not alter the objective construction of the contract. Equity requires that the defendants forfeit the discount for non-payment of rental charges.

Court Disposition

judgment for the plaintiff

Orders

  • Defendants to pay £13,331 to the plaintiff as forfeited discount
  • Interest at 4% from 1 June 2008