Commercial Law weeks 5&6

De Hahn v Hartley

was statement about having 50 crew members on a ship a warranty?

if so, does even a temporary breach prevent recovery?

held - yes, was a warranty. warranty in insurance law must be strictly complies with, the breach wa enough to void the policy

Dawsons Ltd v Bonnin

was statement about where car was kept overnight a warranty?

if so, does breach prevent recovery even if unrelated to the loss?

held - statement was a warranty, the insured had reached the warranty by keeping the car elsewhere, the insurer was not liable.

Hibbert v Pigou

ship was held to be in breach for not sailing with a convoy

could not obtain any cover despite the total lack of casualty between the breach and the loss

(ship was sunk in stormy weather)

Retention of title clause definition

• reserves title for seller subject to conditions

• parties determine conditions

• must be seen within the broader context of s17

benefits of Retention of Title clauses

• seller can recover goods where buyer is unable to pay

• seller can recover goods when buyer is insolvent

risks of Retention of Title clauses

• seller cannot sue for the purchase price because for you to sue for purchase price, property in goods need to have actually passed

• if the buyer sells those goods, the seller cannot have any right against the third party (s25)