Oakbank Oil Co., Ltd v. Love & Stewart, Ltd [1917] ScotLR 519 (29 June 1917)

Oakbank Oil Co., Ltd v. Love & Stewart, Ltd [1917] ScotLR 519 (29 June 1917)

The majority held that the red ink headnote on the defenders' notepaper was sufficiently prominent and formed part of the correspondence, and thus was incorporated as a condition of the contract. This entitled the defenders to cancel the contract when a country of supply became engaged in war. The pursuers were therefore not entitled to damages for breach of contract.

Citation
[1917] ScotLR 519
Parties
Pursuer: Oakbank Oil Company, Limited; Defender: Love & Stewart, Limited
Jurisdiction
Scotland
Judgment Date
29 June 1917
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division
Outcome
appeal allowed; defenders assoilzied (absolved from liability)
Legal Topics
Incorporation of Terms, Sale of Goods, Interpretation of Contract Conditions, Effect of Printed Terms on Correspondence, Right to Cancel for War
Contract Law Commercial Law Incorporation of Terms Sale of Goods Interpretation of Contract Conditions Effect of Printed Terms on Correspondence Right to Cancel for War

Case Brief

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Parties

Oakbank Oil Company, Limited

Pursuer

Love & Stewart, Limited

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division

Legal Issues

  1. 1 Whether a red ink printed headnote on the seller's notepaper formed part of the contract of sale and entitled the seller to cancel the contract when a country of supply became engaged in war.
  2. 2 Whether sufficient notice of the condition was given to the buyer for it to be incorporated into the contract.

Ratio Decidendi

The majority held that the red ink headnote on the defenders' notepaper was sufficiently prominent and formed part of the correspondence, and thus was incorporated as a condition of the contract. This entitled the defenders to cancel the contract when a country of supply became engaged in war. The pursuers were therefore not entitled to damages for breach of contract.

Court Disposition

appeal allowed; defenders assoilzied (absolved from liability)

Orders

  • Interlocutor of the Lord Ordinary recalled.
  • Defenders assoilzied from the conclusions of the summons.