British Motor Body Co., Ltd v. Thomas Shaw (Dundee), Ltd [1914] ScotLR 812 (10 July 1914)

British Motor Body Co., Ltd v. Thomas Shaw (Dundee), Ltd [1914] ScotLR 812 (10 July 1914)

A claim for damages for late delivery, even where the contract does not specify a delivery time, is a relevant defence to an action for the price, as failure to deliver within a reasonable time is a breach of contract. The distinction previously drawn between exceeding a specified time and exceeding a reasonable time is unsound; both constitute breaches arising from the same contract and entitle the buyer to set off damages against the price.

Citation
[1914] ScotLR 812
Parties
Pursuer: British Motor Body Company, Limited; Defender: Thomas Shaw (Dundee), Limited
Jurisdiction
Scotland
Judgment Date
10 July 1914
Procedural Posture
Civil / Appeal From Sheriff and Sheriff Substitute to Inner House, First Division
Outcome
Appeal allowed; interlocutors of the Sheriff and Sheriff-Substitute recalled; cause remitted to Sheriff-Substitute to proceed.
Legal Topics
Damages for Late Delivery, Counterclaim, Set Off, Sale of Goods, Reasonable Time for Delivery
Contract Law Commercial Law Damages for Late Delivery Counterclaim Set Off Sale of Goods Reasonable Time for Delivery

Case Brief

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Parties

British Motor Body Company, Limited

Pursuer

Thomas Shaw (Dundee), Limited

Defender

Procedural Posture

Civil / Appeal From Sheriff and Sheriff Substitute to Inner House, First Division

Legal Issues

  1. 1 Whether a buyer can set off a claim for damages for late delivery against the seller's claim for the price when no time for delivery is specified in the contract.
  2. 2 Whether the absence of a specified delivery time precludes a counterclaim for damages for late delivery in an action for the price.

Ratio Decidendi

A claim for damages for late delivery, even where the contract does not specify a delivery time, is a relevant defence to an action for the price, as failure to deliver within a reasonable time is a breach of contract. The distinction previously drawn between exceeding a specified time and exceeding a reasonable time is unsound; both constitute breaches arising from the same contract and entitle the buyer to set off damages against the price.

Court Disposition

Appeal allowed; interlocutors of the Sheriff and Sheriff-Substitute recalled; cause remitted to Sheriff-Substitute to proceed.

Orders

  • Recall of interlocutors of Sheriff and Sheriff-Substitute.
  • Remit to Sheriff-Substitute to proceed with the case.