Charter v Sullivan

Where demand for goods exceeds supply, a seller whose buyer refuses to take the goods suffers only nominal damages, because he can sell them to another buyer.

Citation
[1957] 2 QB 117
Court
Court of Appeal
Year
1957
Subject
Commercial Law
Topic
Remedies in sale of goods

Facts

Mr Sullivan agreed to buy a new Hillman Minx car from Mr Charter, a car dealer, but then refused to take delivery. Mr Charter sold the car to another buyer a few days later, at the same price. He sued Mr Sullivan for the lost profit. The evidence showed that the dealer could sell all the Hillman Minx cars he could get.

Legal principle

The Court of Appeal held that Mr Charter was entitled only to nominal damages. Jenkins LJ said that, unlike in Thompson v Robinson, the demand for Hillman Minx cars exceeded supply, so the dealer would have sold the same number of cars whether or not Mr Sullivan had defaulted. He had therefore not lost a sale, and had suffered no loss of profit. The measure of damages depends on whether the seller lost a sale because of the buyer's breach.

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