Nelson v. William Chalmers & Co. [1912] ScotLR 364 (17 December 1912)

Nelson v. William Chalmers & Co. [1912] ScotLR 364 (17 December 1912)

The pursuer was entitled to reject the yacht as it was not conform to contract, specifically not to the satisfaction of the owner or designer as stipulated. The passing of property on payment of the first instalment did not abrogate the right of rejection under Scottish law or the Sale of Goods Act 1893. The pursuer had not accepted the yacht, and the right to reject was exercised timeously. The defenders were in breach of contract and liable for repayment of the instalment, return of supplied articles, and damages.

Citation
[1912] ScotLR 364
Parties
Pursuer: Ian Theodore Nelson of Glenetive; Defenders: William Chalmers & Company, Limited, shipbuilders, Rutherglen
Jurisdiction
Scotland
Judgment Date
17 December 1912
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
Appeal dismissed in substance; Lord Ordinary's interlocutor adhered to with minor modification.
Legal Topics
Sale of Moveables, Breach of Contract, Transference of Property, Right to Reject Goods, Interpretation of Sale of Goods Act 1893
Contract Law Commercial Law Sale of Goods Sale of Moveables Breach of Contract Transference of Property Right to Reject Goods Interpretation of Sale of Goods Act 1893

Case Brief

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Parties

Ian Theodore Nelson of Glenetive

Pursuer

William Chalmers & Company, Limited, shipbuilders, Rutherglen

Defenders

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether the pursuer was entitled to reject the yacht as disconform to contract despite property having passed on payment of the first instalment
  2. 2 Whether the Sale of Goods Act 1893 abrogated the common law right of rejection in Scotland
  3. 3 Whether the pursuer had accepted the yacht or was barred from rejection

Ratio Decidendi

The pursuer was entitled to reject the yacht as it was not conform to contract, specifically not to the satisfaction of the owner or designer as stipulated. The passing of property on payment of the first instalment did not abrogate the right of rejection under Scottish law or the Sale of Goods Act 1893. The pursuer had not accepted the yacht, and the right to reject was exercised timeously. The defenders were in breach of contract and liable for repayment of the instalment, return of supplied articles, and damages.

Court Disposition

Appeal dismissed in substance; Lord Ordinary's interlocutor adhered to with minor modification.

Orders

  • Defenders to pay pursuer £131, 5s. with interest as concluded for.
  • Defenders to deliver specified articles to pursuer within thirty days, failing which decree for their value with interest.