Source: All England Reporter
Publisher Citation: [2011] All ER (D) 113 (Apr)
Neutral Citation: [2011] EWHC 848 (Comm)
Court: Queen's Bench Division, Commercial Court
Judge: Hamblen J
Representation Matthew Reeve and Ruth Hosking (instructed by Clyde & Co) for the claimant.
  Adam Constable QC and Lucy Garrett (instructed by Ince & Co) for the defendant.
Judgment Dates: 11 April 2011

Catchwords

Contract - Construction - Shipbuilding contract - Rescission - Claimant shipyard contracting to build two vessels for defendant buyer - Vessels not ready for sea trials by contractual date - Defendant purporting to rescind contract and alleging entitlement to return of installments already paid - Claimant issuing proceedings alleging that contracts had been varied by the defendant with the result that the defendant could not rely on the contractual date for performance.

The Case

Contract Construction. The Commercial Court, Queen's Bench Division, held that the contracts for the construction of two ships had not been varied by the buyer, and consequently the buyer had been entitled to terminate the contract when the vessels were not ready for sea trials by the date stipulated in the contract. As a result, the buyer would, pursuant to the terms of the contracts, be entitled to a return of the purchase installments made.

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