RV Ward Ltd v Bignall
Where an unpaid seller lawfully resells goods after the buyer's default, the original contract is rescinded, and the seller can claim damages for the loss.
Facts
Mr Bignall agreed to buy two cars, a Ford Zodiac and a Vanguard estate, from Ward for £850, and paid a deposit of £25. He then refused to pay the balance, arguing that the Vanguard was not of the model he had been told it was. Ward gave him notice that, unless he paid, the cars would be resold. Ward sold the Vanguard, but could not sell the Zodiac, and sued for the balance of the price.
Legal principle
The Court of Appeal held that Ward was entitled only to damages, not the price. Sellers LJ said that, when an unpaid seller resells goods under section 48(3) of the Sale of Goods Act 1893, the original contract is rescinded, so that the property in the unsold goods reverts to the seller. The seller cannot then sue for the price, but only for damages for the buyer's breach, which were the loss on the resale of the Vanguard and the difference between the contract price of the Zodiac and its market value, together with the expenses.
Related cases on remedies in sale of goods
- Behnke v Bede Shipping Co Ltd [1927] 1 KB 649
- Bence Graphics International Ltd v Fasson UK Ltd [1998] QB 87
- Bernstein v Pamson Motors (Golders Green) Ltd [1987] 2 All ER 220
- Cehave NV v Bremer Handelsgesellschaft mbH (The Hansa Nord) [1976] QB 44
- Charter v Sullivan [1957] 2 QB 117
- Clegg v Olle Andersson (The Hampton) [2003] EWCA Civ 320
- Cohen v Roche [1927] 1 KB 169
- Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26
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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
