Davis & Primrose, Ltd v. The Clyde Shipbuilding and Engineering Co., Ltd, and Others [1918] ScotLR 24 (16 October 1918)

Davis & Primrose, Ltd v. The Clyde Shipbuilding and Engineering Co., Ltd, and Others [1918] ScotLR 24 (16 October 1918)

The outbreak of war dissolved the contract, not merely suspended it, and the sellers are obliged to account for instalments paid by the buyers for which no consideration was received, entitling the pursuers to recover the sums arrested in the hands of the sellers.

Citation
[1918] ScotLR 24
Parties
Pursuer: Davis & Primrose, Limited; Arrestee/defender: The Clyde Shipbuilding and Engineering Company, Limited; Principal Debtor/common Debtor: Stablimento Tecnico Triestino
Jurisdiction
Scotland
Judgment Date
16 October 1918
Procedural Posture
Action of Furthcoming / Inner House, First Division; Appeal From Lord Ordinary's Decision
Outcome
Cause sisted (stayed) upon caution being found by the arrestees; decree in favour of pursuers at first instance.
Legal Topics
Contract Dissolution by War, Sale of Goods, Recovery of Payments on Failure of Consideration, Arrestment of Funds, Alien Enemy Contracts
Contract Law Commercial Law Conflict of Laws Contract Dissolution by War Sale of Goods Recovery of Payments on Failure of Consideration Arrestment of Funds Alien Enemy Contracts

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Parties

Davis & Primrose, Limited

Pursuer

The Clyde Shipbuilding and Engineering Company, Limited

Arrestee/defender

Stablimento Tecnico Triestino

Principal Debtor/common Debtor

Procedural Posture

Action of Furthcoming / Inner House, First Division; Appeal From Lord Ordinary's Decision

Legal Issues

  1. 1 Whether the outbreak of war dissolved or suspended the contract between a British and Austrian firm
  2. 2 Whether sums paid by the buyers prior to the outbreak of war are recoverable or belong to the sellers
  3. 3 Whether the sellers are under obligation to account for instalments paid when the contract became illegal

Ratio Decidendi

The outbreak of war dissolved the contract, not merely suspended it, and the sellers are obliged to account for instalments paid by the buyers for which no consideration was received, entitling the pursuers to recover the sums arrested in the hands of the sellers.

Court Disposition

Cause sisted (stayed) upon caution being found by the arrestees; decree in favour of pursuers at first instance.

Orders

  • Cause sisted upon arrestees finding caution.
  • Decree for payment to pursuers as concluded for (at first instance).