#contract #law #remedies
In relation to a part payment, on the other hand, the general rule is that the part payment may be recovered by a party in breach of contract. In Dies v British and International Mining and Finance Co [1939] 1 KB 715, the claimant entered into a contract for the purchase of rifles and ammunition and made a part payment of £100,000. In breach of contract, the claimant refused to accept delivery, and the court held that he was able to recover the part payment from the defendants, even though this was subject to the defendants' right to recover damages for breach of contract. In reviewing the decision some 40 years later, the House of Lords, in Hyundai Shipbuilding and Heavy Industries Co Ltd v Papadopulos [1980] 1 WLR 1129, stated that in Dies the defendants, who had to return the part payment, had not incurred expenditure performing their contractual obligations. However, had they incurred expenditure, their Lordships suggested that the party in breach may not be able to recover the part payment.
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