LOUISE MERRETT

TRINITY COLLEGE
COMMERCIAL LAW LECTURES 2013-2014
SALE OF GOODS
SELLERS DAMAGES CASE STUDY
S ----------------- B
S agrees to sell B 1000 !g o" #or$ at a %r&#e o" '( %er !g t)ere"ore a total %r&#e o" '(000*
Cor$ to +e ,el&-ere, 31.12.0(*
Mar!et %r&#e o" #or$ o$ 31.12.0( '3 %er !g
1. The general measure of damages s !" SGA
#hen S $r%es $o del%&er $he 'orn( ) refuses $o a''e*$ %$.
General measure of damages se$ ou$ %n s !"+,- . D%fferen'e /e$0een C1 and M1 %e 23(""".
3. #hen %s mar4e$ *r%'e $o /e assessed %n 'ases of re*ud%a$or5 /rea'h
On ,"6116"! ) %nd%'a$es $ha$ he no longer 0an$s $he 'orn. S a''e*$s $h%s re*ud%a$or5 /rea'h
of 'on$ra'$.
On ,"6116"! M1 7 28 *er 4g.
Damages s$%ll 23(""" /e'ause M1 s$%ll assessed on da$e 0hen 'orn should ha&e /een del%&ered
U9LESS 0ould ha&e /een reasona/le $o sell on a fall%ng mar4e$ +Millett v Van Heeck-.
:f S refuses $o a''e*$ $he an$%'%*a$or5 /rea'h of 'on$ra'$( as he %s en$%$led $o do( $here 'an /e
no du$5 $o m%$%ga$e.
Con&ersel5 %f M1 on ,"6116"! 7 2; *er 4g damages s$%ll 23(""" as should no$ /e /e$$er off
$han %f $he 'on$ra'$ had /een *erformed +/5 analog5 0%$h Melcachrino a 'ase on s !1-.
,. Rele&an'e of *r%'e a'$uall5 o/$a%ned on resale.
S a'$uall5 resold $he goods on ,1616"; for 2; *er 4g.
Damages s$%ll 23(""". )e'ause %f he had resold on ,1616"; for 23 *er 4g 0ould s$%ll ha&e
/een 23(""" 'ould no$ /lame ) %f *r%'e had fallen /5 $he $%me he sold and ) 'anno$ ha&e %$
/o$h 0a5s +Campell Mostyn). )u$ resul$ ma5 /e d%fferen$ %f sold %mmed%a$el5 on ,16136"!
+see A$%5ah * 8<3-. 9/ %f a'$ed reasona/l5 %n $r5%ng $o re=sell and 'anno$ m%gh$ /e e&%den'e
$ha$ $here %s no a&a%la/le mar4e$ +Aercap Partners v Avia Asset Management >3"1"? E#@C
38,1-.
:f S a'$ed reasona/l5 %n nego$%a$%ng 0%$h ) and $he re=sale %s dela5ed for $ha$ reason( M1 ma5
/e assessed a$ $ha$ la$er da$e +d%'$a of Lord #%l/erfor'e %n Johnson v Agnew >1<A"? AC ,;B-.
8. #ha$ %f S does no$ a'$uall5 ha&e $he 'orn a$ da$e of /rea'hC
) %nd%'a$es on ,"6116"! $ha$ he does no$ 0an$ $he 'orn. :f S does no$ ha&e $he 'orn damages
are $he *rof%$ he 0ould ha&e made on $he sale +%e h%s su**l5 'on$ra'$ *r%'e less C1 less
%n'%den$al eD*enses 0h%'h 0ould ha&e /een %n'urred %n fulf%ll%ng $he 'on$ra'$.