Ireland & Son v. Rosewell Gas Coal Co., Ltd [1900] ScotLR 37_521 (09 March 1900)

Ireland & Son v. Rosewell Gas Coal Co., Ltd [1900] ScotLR 37_521 (09 March 1900)

The contract was originally made verbally and merely recorded in writing; therefore, parole evidence was admissible to prove a subsequent verbal agreement to deliver the balance of coal in September. The subsequent agreement did not displace or vary the original contract but was a mutual arrangement within its terms. The pursuers were entitled to damages for the defenders' failure to deliver as agreed.

Citation
[1900] ScotLR 37_521
Parties
Pursuer: David Ireland & Son; Defender: Rosewell Gas Coal Company, Limited
Jurisdiction
Scotland
Judgment Date
09 March 1900
Procedural Posture
Action for Damages for Breach of Contract / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division
Outcome
appeal dismissed; interlocutor of Lord Ordinary affirmed; decree for pursuers
Legal Topics
Admissibility of Parole Evidence, Variation of Contract, Sale of Goods, Damages for Breach of Contract
Contract Law Evidence Law Admissibility of Parole Evidence Variation of Contract Sale of Goods Damages for Breach of Contract

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Parties

David Ireland & Son

Pursuer

Rosewell Gas Coal Company, Limited

Defender

Procedural Posture

Action for Damages for Breach of Contract / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, Second Division

Legal Issues

  1. 1 Whether parole evidence is admissible to prove a subsequent agreement to alter the terms of a contract originally made verbally but later recorded in writing.
  2. 2 Whether the subsequent verbal agreement constituted a variation or displacement of the original contract.
  3. 3 Whether a contract for the sale of moveables, originally verbal but later recorded in writing, can be varied by parole evidence.

Ratio Decidendi

The contract was originally made verbally and merely recorded in writing; therefore, parole evidence was admissible to prove a subsequent verbal agreement to deliver the balance of coal in September. The subsequent agreement did not displace or vary the original contract but was a mutual arrangement within its terms. The pursuers were entitled to damages for the defenders' failure to deliver as agreed.

Court Disposition

appeal dismissed; interlocutor of Lord Ordinary affirmed; decree for pursuers

Orders

  • Defenders to pay pursuers £134 8s. as damages for breach of contract.
  • Defenders to pay expenses.