Facts: The sellers agreed to sell palm oil to the buyers, who agreed to sell this on to the sub-buyers. A clause in the agreement required that a ‘declaration of ship’ was to be made to the buyers in writing as soon as possible after the ship sailed. Despite the fact that the sellers did not give the declaration until more than a month after the ship sailed, the buyers raised no objection to this. The buyers requested that the sellers provide the documents to the sub-buyers. Two days later, the sub-buyers rejected the documents and, that same day, the buyers also rejected the documents. The sellers had to sell the oil to another for less than the price the buyers had agreed to pay. The sellers brought an action against the buyers for the difference in the two prices.
It is therefore clear that it is not a requirement that the promisee has been prejudiced by altering his position. However, it is an essential part of the doctrine that it should be inequitable for the promisor to go back on his promise and enforce the strict contractual obligations.
Answer
Societe Italo-Belge pour le Commerce et l’Industrie SA v Palm and Vegetable Oils (Malaysia) Sdn Bhd (The Post Chaser) [1982] 1 All ER 19
Tags
#consideration #contract
Question
Facts: The sellers agreed to sell palm oil to the buyers, who agreed to sell this on to the sub-buyers. A clause in the agreement required that a ‘declaration of ship’ was to be made to the buyers in writing as soon as possible after the ship sailed. Despite the fact that the sellers did not give the declaration until more than a month after the ship sailed, the buyers raised no objection to this. The buyers requested that the sellers provide the documents to the sub-buyers. Two days later, the sub-buyers rejected the documents and, that same day, the buyers also rejected the documents. The sellers had to sell the oil to another for less than the price the buyers had agreed to pay. The sellers brought an action against the buyers for the difference in the two prices.
It is therefore clear that it is not a requirement that the promisee has been prejudiced by altering his position. However, it is an essential part of the doctrine that it should be inequitable for the promisor to go back on his promise and enforce the strict contractual obligations.
Answer
?
Tags
#consideration #contract
Question
Facts: The sellers agreed to sell palm oil to the buyers, who agreed to sell this on to the sub-buyers. A clause in the agreement required that a ‘declaration of ship’ was to be made to the buyers in writing as soon as possible after the ship sailed. Despite the fact that the sellers did not give the declaration until more than a month after the ship sailed, the buyers raised no objection to this. The buyers requested that the sellers provide the documents to the sub-buyers. Two days later, the sub-buyers rejected the documents and, that same day, the buyers also rejected the documents. The sellers had to sell the oil to another for less than the price the buyers had agreed to pay. The sellers brought an action against the buyers for the difference in the two prices.
It is therefore clear that it is not a requirement that the promisee has been prejudiced by altering his position. However, it is an essential part of the doctrine that it should be inequitable for the promisor to go back on his promise and enforce the strict contractual obligations.
Answer
Societe Italo-Belge pour le Commerce et l’Industrie SA v Palm and Vegetable Oils (Malaysia) Sdn Bhd (The Post Chaser) [1982] 1 All ER 19
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Facts: The sellers agreed to sell palm oil to the buyers, who agreed to sell this on to the sub-buyers. A clause in the agreement required that a ‘declaration of ship’ was to be made to
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