British Steel Corp v Cleveland Bridge and Engineering Co Ltd

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Konu Başlığı British Steel Corp v Cleveland Bridge and Engineering Co Ltd
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Revision as of 23:57, 2 May 2024
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{{Short description|English law case}}{{Short description|English law case}}
{{Use dmy dates|date=April 2022}}{{Use dmy dates|date=April 2022}}
{{Unreferenced|date=November 2021}}{{Infobox court case{{Infobox court case
| name = British Steel Corp v [[Cleveland Bridge & Engineering Company|Cleveland Bridge and Engineering Co Ltd]]| name = British Steel Corp v [[Cleveland Bridge & Engineering Company|Cleveland Bridge and Engineering Co Ltd]]
| court = High Court| court = High Court
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==Facts====Facts==
Steel nodes delivered to defendants after letter of intent to buy, but no formal contract had been concluded because the claimants refused to use the defendants’ terms, and negotiations took so long. No agreement was reached on progress payments and liability for late delivery, and defendants refused to pay because of lateness and nodes coming out of sequence. They had, however, been delivered.Steel nodes were delivered to the defendants after a letter of intent to buy, but no formal contract had been concluded because the claimants refused to use the defendants’ terms, and negotiations took so long. No agreement was reached on progress payments and liability for late delivery, and defendants refused to pay because of lateness and nodes coming out of sequence. British Steel Corp sued to recover the money, and Cleveland Bridge sought damages for the late payment.
==Judgment====Judgment==
Robert Goff J's judgment accepted that a letter of intent ''could'' amount to an executory contract, but it did not in this case due to the negotiations being ongoing. The court considered but rejected the submission that the defendants' terms could have amounted to a standing offer that could be accepted by starting the work. Instead, the court decided that no contract had been entered into, and only allowed the claimants to get restitutionary recovery on a ''[[quantum meruit]]'' basis for the value of the work done. The conclusion that no contract existed meant the defendants could not recover the damages for late performance as no terms had been agreed to that extent.<ref>{{Cite book |last=Yin |first=Kenneth |url=https://www.cambridge.org/highereducation/product/9781108393959/book |title=Contract Law: Cases and Materials |last2=Kozlina |first2=Simon |last3=Green |first3=Kelly |last4=Siliquini-Cinelli |first4=Luca |last5=Laryea |first5=Emmanuel |last6=Spagnolo |first6=Lisa |date=2020-10-28 |publisher=Cambridge University Press |isbn=978-1-108-39395-9 |edition=1 |doi=10.1017/9781108393959|pages=112-115}}</ref><ref>{{Cite book |last=Stewart |first=Andrew |url=https://www.cambridge.org/core/product/identifier/9781107445703/type/book |title=Contract Law: Principles and Context |last2=Swain |first2=Warren |last3=Fairweather |first3=Karen |date=2019-09-30 |publisher=Cambridge University Press |isbn=978-1-107-44570-3 |edition=1 |doi=10.1017/9781107445703|page=71}}</ref>
Robert Goff J gave three alternatives, so (1) intent letter could have been an executory contract, but was not because negotiations were going on (2) the defendants' terms were a standing offer accepted by beginning the work, but that was presumptuous (3) so the best solution is to allow restitutionary recovery for the value of the work done. The nodes were a benefit at the expense,
==See also====See also==
{{Caselist agreement}}{{Caselist agreement}}
*[[English contract law]]*[[English contract law]]
*''[[RTS Flexible Systems Ltd v Molkerei Alois Müller GmbH & Co KG]]''
==References====References==
{{Reflist}}
*
[[Category:English contract case law]][[Category:English contract case law]]

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