Boyd & Forrest v GWSR Co [1914] ScotCS CSIH_2 (07 March 1914)

Boyd & Forrest v GWSR Co [1914] ScotCS CSIH_2 (07 March 1914)

The pursuers entered the contract under essential error induced by defenders' misrepresentation and concealment regarding the journal of bores. Although literal restitution is impossible, equitable restitution can be achieved by monetary readjustment. The contract is set aside, and the pursuers are entitled to payment on a quantum meruit basis, offset by amounts already received. Damages are awarded for losses caused by the defenders' failure to notify about the Paisley water-pipe.

Citation
[1914] ScotCS CSIH_2
Parties
Pursuers: Boyd & Forrest; Defenders: Glasgow and South-Western Railway Co.
Jurisdiction
Scotland
Judgment Date
07 March 1914
Procedural Posture
Civil Contract Dispute / Post Remit From House of Lords, Final Judgment by Court of Session
Outcome
Contract set aside for essential error; quantum meruit awarded; damages granted for Paisley water-pipe interruption.
Legal Topics
Misrepresentation, Essential Error, Rescission, Damages, Quantum Meruit
Contract Law Equity Misrepresentation Essential Error Rescission Damages Quantum Meruit

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Parties

Boyd & Forrest

Pursuers

Glasgow and South-Western Railway Co.

Defenders

Procedural Posture

Civil Contract Dispute / Post Remit From House of Lords, Final Judgment by Court of Session

Legal Issues

  1. 1 Whether pursuers were induced to enter contract by misrepresentation causing essential error
  2. 2 Whether pursuers are entitled to rescind contract or claim damages
  3. 3 Whether restitution is possible given contract performance

Ratio Decidendi

The pursuers entered the contract under essential error induced by defenders' misrepresentation and concealment regarding the journal of bores. Although literal restitution is impossible, equitable restitution can be achieved by monetary readjustment. The contract is set aside, and the pursuers are entitled to payment on a quantum meruit basis, offset by amounts already received. Damages are awarded for losses caused by the defenders' failure to notify about the Paisley water-pipe.

Court Disposition

Contract set aside for essential error; quantum meruit awarded; damages granted for Paisley water-pipe interruption.

Orders

  • Contract rescinded for essential error induced by misrepresentation.
  • Pursuers to be paid on quantum meruit basis, offset by prior payments.