JJ Savage & Sons Pty Ltd v Blakney PDF

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Summary

express terms, collateral contracts, important aspect of contract law...

Description

JJ Savage & Sons Pty Ltd v Blakney Express Terms Collateral Contracts Name of Case

JJ Savage & Sons Pty Ltd v Blakney

Citation and Court

JJ Savage & Sons Pty Ltd v Blakney (1970) 119 CLR 435 High Court of Australia

Material Facts

During negotiations with the Savage company about the construction of a motorboat, Blakney sought advice on the type of engine that could be installed. In correspondence between them the company manager expressed his opinion about the various engines and recommended one that had an ‘estimated speed’ of 15 mph. When Blakney placed his order, which included the recommended engine, he signed a written agreement which did not refer to the boat’s speed. After construction and purchase, the boat reached a speed of only 12 mph. Blakney sued, claiming that the reference in correspondence to the boat’s speed capacity was a condition or warranty of the contract or, alternatively, that it amounted to a collateral warranty. He argued that the statement constituted a promise, the consideration for which was his execution of the written agreement.

Legal Issue

Whether the pre-contractual statement in correspondence about the boat’s estimated speed could amount to a collateral contract

Relevant Law

Statement has to have ‘promissory and not merely representational’ character to be judged a collateral contract

Application of Law to the Facts

The manager’s statement was just a recommendation and not promissory in nature. If Blakney wanted that statement to give rise to a collateral warranty, he should have sought from Savage a promise (however expressed) that the boat would attain the speed as a prerequisite of ordering the boat

Conclusion

Held that the pre-contractual statement did not give rise to a collateral contract....