Shanklin Pier v Detel

Watch this thread
beepbeeprichie
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#1
Report Thread starter 11 years ago
#1
Could somebody please make sure whether I understand this case as I'm really struggling to get my head around it:

So the facts are:
-So shanklin pier contracts with painters to paint the pier
-The painters contract with detel to pay for paint
-Shanklin is promised by Detel the paint will last for 7 years but it doesn't and so Shanklin sues Detel.

Analysis:

-Under general privity rules there is no contract because Detel and Shanklin are not parties to the sale of the paint and so cannot sue under warranty.
-But the court invents (!?) a collateral contract between Detel and Shanklin that the paint would last for 7 years. Is this just a collateral contract because the Shanklin give consideration to Detel by causing the painters to buy their paint.
-Therefore Detel can be sued by Shanklin for breach of the collateral contract.

Thanks,

Tom H
1
reply
jacketpotato
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#2
Report 11 years ago
#2
Yes. There was a separate contract. The defendants (paint producers) gave warranties to the claimant (bridge owner), and the consideration was the bridge owner agreeing to enter into the main contract of sale with a third party. Remember that Shanklin is suing under this collateral contract; not under the contract of sale.
1
reply
beepbeeprichie
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#3
Report Thread starter 11 years ago
#3
(Original post by jacketpotato)
Yes. There was a separate contract. The defendants (paint producers) gave warranties to the claimant (bridge owner), and the consideration was the bridge owner agreeing to enter into the main contract of sale with a third party. Remember that Shanklin is suing under this collateral contract; not under the contract of sale.
Thanks. What I'm struggling is why that 'collateral contract' is a collateral contract. If a collateral contract is one where the consideration for a promise is a promise to enter into a seperate contract with either the original party or a third party (right?) then how is the contract between Detel and Shanklin a collateral contract. If Shankill's consideration for the promise by Detel that the paint would last 7 years is that he would enter into a contract with a third party (the painter) requiring him to purchase paint from Detel then wouldn't that contract be the collateral one? Sorry if I'm being dumb and missing something
0
reply
jacketpotato
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#4
Report 11 years ago
#4
(Original post by tomheppy)
Thanks. What I'm struggling is why that 'collateral contract' is a collateral contract. If a collateral contract is one where the consideration for a promise is a promise to enter into a seperate contract with either the original party or a third party (right?) then how is the contract between Detel and Shanklin a collateral contract. If Shankill's consideration for the promise by Detel that the paint would last 7 years is that he would enter into a contract with a third party (the painter) requiring him to purchase paint from Detel then wouldn't that contract be the collateral one? Sorry if I'm being dumb and missing something
The contract isn't special because its collateral. Ignore the word collateral, it doesn't really mean anything, its just one of those inaccurate descriptive words. Its just a contract - a new, separate contract. The case isn't really an exception to privity at all: its an example of how you might be able to find a new contract entirely to get around a privity problem.
0
reply
beepbeeprichie
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#5
Report Thread starter 11 years ago
#5
EDIT: oops I think I muddled the def of a collateral contract. It is one in which a party is obligated to enter into where the obligation is part of the consideration for the main contract. Applied to the case= the contract between Shanklin and the painter requiring him to purchase paint from Detel is the collateral contract because this is the consideration for Detel's promise that the paint will last 7 years. In which case it still seems that the contract between Shanklin and the third party (painter) is the collateral contract.
0
reply
beepbeeprichie
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#6
Report Thread starter 11 years ago
#6
EDIT 2: Ok thanks. Textbooks can be so misleading (like all of them!)
0
reply
beepbeeprichie
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#7
Report Thread starter 11 years ago
#7
(Original post by Sebsan)
Ok, now let me see if I get this.

- First, Shanklin Pier hires painters.

- Then Detel promis Shanklin pier that their paint will last for seven years, leading the painters to buy paint from Detel.

- When the paint fails to last seven years it is a breach of Detels promise.

- Since this promise was a prerequisite for the sale of paint, it is regarded as binding/a collateral contract.

- Subsequently Shanklin Pier may sue Detel without breaking privity.


Is this correct?
'- Since this promise was a prerequisite for the sale of paint, it is regarded as binding/a collateral contract.'

I don't think that's right. The consideration for Detel's promise must be given by Shanklin and the idea is that the consideration in this case was Shankill entering into a contract with the painter requesting him to buy the paint from Detel.
0
reply
jacketpotato
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#8
Report 11 years ago
#8
My understanding is as follows (pls bear in mind that I did last did contract 2yrs ago):

CONTRACT ONE

Service contract between Shanklin and the painters

CONTRACT TWO

A promise made by Detel to Shanklin that the paint will last seven years. The consideration was Detel entering into Contract One.

Contract Two is regarded as binding because it is a separate contract like any other: there was an offer and acceptance, consideration and intent to create legal relations.
0
reply
shakoorqaadri
Badges: 2
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#9
Report 1 year ago
#9
Actually there are two contracts.( 1)between Shanklin and Panit Contractor and (2 )between Detel ( paint manufacturer and seller) and Shanklin. Shanklin contracts with paint contractor to carry on painting for Shanklin but in the meanwhile the director of Detel approaches Shanklin shows him that they produce nice paint and says to paint contractor that it's gonna last 7 to 10 years, he gave consideration about duration and quality of paint. Shanklin hearing this is impressed and makes the paint contractor to buy that paint from Detel, is enough consideration by Shanklin which the paint contractor does that same. The paint was not reliable and Shanklin could sue Detel. Hope that I have explained well.
Last edited by shakoorqaadri; 1 year ago
1
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Has advance information helped during your exams?

Yes (66)
66.67%
No (25)
25.25%
I didn't use it to prepare (8)
8.08%

Watched Threads

View All
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise