The respondents chartered the appellant ship owner's vessel, The Heron II, for the carriage of sugar by sea to the port of Basrah. It was predicted with a reasonable degree of certainty that the voyage would take 20 days. In breach of contract, the vessel made deviations en route resulting in a delay of nine days. Without the delay, the sugar would have sold for £32 10s. per ton, instead of the £31 2s. 9d. per ton that was received. The ship owner did not know of the charterer's intention, but was aware that there was a market for sugar at Basrah. The charterer issued a writ claiming for the lost profits. The issue for the House of Lords was whether the damage was too remote. It was held by their Lordships, using the rule in Hadley v Baxendale, that the lost profit was recoverable as damages for breach of contract because, on the knowledge available to the ship owner when the contract was made, the sale of sugar at Basrah on the ship's arrival was something of which there was such probability that it should be regarded by the court as arising in the usual course of things.
Answer
Koufos v C Czarnikow Ltd, The Heron II [1969] 1 AC 350
Tags
#contract #law #remedies
Question
The respondents chartered the appellant ship owner's vessel, The Heron II, for the carriage of sugar by sea to the port of Basrah. It was predicted with a reasonable degree of certainty that the voyage would take 20 days. In breach of contract, the vessel made deviations en route resulting in a delay of nine days. Without the delay, the sugar would have sold for £32 10s. per ton, instead of the £31 2s. 9d. per ton that was received. The ship owner did not know of the charterer's intention, but was aware that there was a market for sugar at Basrah. The charterer issued a writ claiming for the lost profits. The issue for the House of Lords was whether the damage was too remote. It was held by their Lordships, using the rule in Hadley v Baxendale, that the lost profit was recoverable as damages for breach of contract because, on the knowledge available to the ship owner when the contract was made, the sale of sugar at Basrah on the ship's arrival was something of which there was such probability that it should be regarded by the court as arising in the usual course of things.
Answer
?
Tags
#contract #law #remedies
Question
The respondents chartered the appellant ship owner's vessel, The Heron II, for the carriage of sugar by sea to the port of Basrah. It was predicted with a reasonable degree of certainty that the voyage would take 20 days. In breach of contract, the vessel made deviations en route resulting in a delay of nine days. Without the delay, the sugar would have sold for £32 10s. per ton, instead of the £31 2s. 9d. per ton that was received. The ship owner did not know of the charterer's intention, but was aware that there was a market for sugar at Basrah. The charterer issued a writ claiming for the lost profits. The issue for the House of Lords was whether the damage was too remote. It was held by their Lordships, using the rule in Hadley v Baxendale, that the lost profit was recoverable as damages for breach of contract because, on the knowledge available to the ship owner when the contract was made, the sale of sugar at Basrah on the ship's arrival was something of which there was such probability that it should be regarded by the court as arising in the usual course of things.
Answer
Koufos v C Czarnikow Ltd, The Heron II [1969] 1 AC 350
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Open it The House of Lords, in Koufos v C Czarnikow Ltd, The Heron II [1969] 1 AC 350, established that the remoteness test in contract is narrower than the remoteness test in tort. In The Heron II, the respondents chartered the appellant ship owner's vessel, The Heron
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