Copyright © 2003 - 2020 - LawTeacher is a trading name of All Answers Ltd, a company registered in England and Wales. 26 4 Hongkong Fir Shipping Co. Ltd. v Kawasaki Kisen Kaisha Ltd. [1962] 2 Q.B. This chapter discusses the decision of the Court of Appeal in Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd, The Hong Kong Fir [1962] 2 QB 26, one of the most important English contract cases of the 20th century. Hong Kong Fir Shipping v Kawasaki Kisen Kaisha Ltd [1962] 1 All ER 474 CA. Ratio: The plaintiffs had recently acquired the ship the ‘Hong Kong Fir’ and contracted to charter it to the defendants, but being late in delivering it, the defendants cancelled the charterparty contract. 27 5 McKendrick, E., Contract Law: Text, Cases and Materials 2 nd Edition (UK, Oxford University Press, 2005) at pp. Diplock, writing for a unanimous court, states that the test does not always depend on whether the thing that was breached was a warranty or a condition, as sometimes the circumstances are more complex than this. Firstly, the Court held that in order to construe whether a contractual clause constitutes a condition precedent, the breach of which permits repudiation, or an innominate term, the breach of which permits damages, depends on a holistic assessment of the contract’s surrounding circumstances in determining the intention of the parties in their treatment of the clause. 15 Paterson Steamships Ltd v Robin Hood Mills (1937) 58 LlLR 33. Facts: In the case a ship was leased. Court of Appeal of England and Wales cases, https://casebrief.fandom.com/wiki/Hong_Kong_Fir_Shipping_Co._Ltd._v_Kawasaki_Kisen_Kaisha_Ltd. Citation The charterparty in Hong Kong Fir Shipping Co. Ltd. v Kawasaki Kisen Kaisha Ltd was a time charter of 24 months (the shipowner manages the vessel but the charterer gives orders for the employment of the vessel). The correct test to determine if a breach should lead to repudiation is to look at the events which have occurred as a result of the breach and to decide if these events deprived the party attempting to repudiate of the benefits that it expected to receive from the contract (the breach must lead to the party not being able to obtain all or a substantial proportion of the benefits that they intended to receive by entering into the contract) - if they do, then repudiation is in order, else only damages can be awarded. We also have a number of samples, each written to a specific grade, to illustrate the work delivered by our academic services. In this representative case, the ship owner hired out the Hong Kong Fir, ‘being in every way fitted for ordinary cargo service’. Donal Nolan (Contact Author) University of Oxford - Faculty of Law ( email ) St Cross Building. However, due to the fact that the engine room staff was inefficient and the engines were very old, the ship was held up for 5 weeks, and then needed 15 more weeks worth of repairs after the deal had been made. Judges The charterer’s repudiated the contract, alleging a breach of the obligations to deliver and maintain a seaworthy vessel. HONGKONG FIR SHIPPING COMPANY, LTD. v. KAWASAKI KISEN KAISHA, LTD. (THE "HONGKONG FIR") [1961] 2 Lloyd's Rep. 478 COURT OF APPEAL Before Lord Justice Sellers, Lord … Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd LORD JUSTICE SELLERS: Both parties to this action are resident abroad, the plaintiffs in Hong Kong and the defendants in Japan, and, in substitution for the arbitration provisions, they agreed to have the dispute tried in our Commercial Court and it came before Mr. Justice Salmon in the early part of this year. Charles Mitchell and Paul Mitchell (eds), Landmark Cases in the Law of Contract (Hart 2008) 269-297, Available at SSRN: https://ssrn.com/abstract=3075903. Lord Diplock, in Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd, created the concept of an innominate term, breach of which may or may not go to the root of the contract depending upon the nature of the breach. Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962] 2 QB 26. Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd which was held in 1961 is a landmark case in English contract law area. The agreement included a term that the ship would be seaworthy throughout the period of hire. 26 (C.A. Hong Kong Fir was successful at trial and Kawasaki appealed. Elderly engines and incompetent staff caused 20 weeks of breakdowns. 989 (H.L.)] Case Brief Wiki is a FANDOM Lifestyle Community. The problems developed with the engine of the ship and the engine crew were incompetent. The vessel was delivered to … Kawasaki Kisen Kaisha Ltd. In Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd (1962 2 QB 26) the Court of Appeal of England and Wales first conceived the notion of an "innominate term". *You can also browse our support articles here >. Registered Data Controller No: Z1821391. The agreement included a term that the ship would be seaworthy throughout the period of hire. 14 Hong Kong Fir Shipping Cov Kawasaki [1962] 2 QB 26; The Amstelslot[1963] 2 Lloyd’s Rep 223. ... as well as a detailed look at repudiation in the context of recent case law ‘Sabic UK Petrochemicals Ltd v Punj Lloyd Ltd and anor [2013] highlights some of the problems that can arise on the termination of a construction contract. In the case, the ship owner hired out the Hong Kong fir, ‘being in every way fitted for ordinary cargo service’. United Kingdom Bourhill v Young [1943] AC 92 - Duration: 5:50. What is the test for determining if a breach of a contract leads to a right of repudiation? ltd v. Kawasaki Kisen Kaisha Ltd (1962) 原告与被告签订合同,被告租用原告的名为Hong Kong Fir的船,租期为24个月。租约中有一个条款规定,该船是适宜航海的。根据以往的有关判例,船上只要稍微有差错,就会违反这个条款。 The innominate terms themselves are hard to classify as conditions or warranties, Whether or not a agreement can be set aside when the term be breached depend on the seriousness of the breach. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Summary of the facts of Hong Kong Fir The charterparty in Hong Kong Fir Shipping Co. Ltd. v Kawasaki Kisen Kaisha Ltd was a time charter of 24 months (the shipowner manages the vessel but the charterer gives orders for the employment of the vessel). Hong Kong Fir Shipping v Kawasaki Kishen Kaisha: Hong Kong Fir agreed to rent their ship to Kawasaki for 24 months and stated on the date of delivery that the ship was fitted for use in ordinary cargo service. Hong Kong Fir Shipping Co. Ltd. v Kawasaki Kisen Kaisha Ltd. The ship was delivered on 13 February 1957, sailing …show more content… Therefore this breach should not lead to repudiation, but only to damages. Upon initial delivery, the vessel’s machinery was described to be in ‘reasonably good condition,’ yet required constant maintenance due to its age. Do you have a 2:1 degree or higher? In parlance more consistent with the modern classification of terms, a party repudiates a contract whenever he breaches, (i) a condition, or (ii) an innominate term in such a way as to deprive the non-breaching party of substantially the whole benefit of the contract (Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 (ECA)). Hong Kong Fir Shipping v Kawasaki Case - developed the concept of innominate terms. Innominate Terms: The Case of Hong Kong Fir Shipping vs Kawasaki Kisen Kaisha - Duration: 6:35. The agreement included a term that the ship would be seaworthy throughout the period of hire. 1962 The problems developed with the engine of the ship and the engine crew were incompetent. Summary of the facts of Hong Kong Fir. many observers now detect a trend to bring the law of sales into closer alignment with the general rules governing the consequences of a breach of contract as laid down in the Hong Kong Fir Shipping Co. case [Hong Kong Fir Shipping Co. Ltd. v. Kawasaki Kisen Kaisha Ltd. (1962) 2 Q.B. 16 Kish v Taylor [1912] AC 604; The Friso [1980] 1 Lloyd’s Rep 469. Clause 1 of the contract obliged the owners to deliver a “seaworthy” vessel and Clause 3 further obliged them to maintain the vessel’s seaworthiness and good condition. Hong Kong Fir Shipping Co v Kawasaki Kisen Kaisha Ltd: CA 20 Dec 1961. On the facts, the delays, albeit serious and repeated, did not amount to a frustration of contract that entitled repudiation of the contract, but merely a breach allowing for damages. First, the labelling of the Clause is immaterial following Hong Kong Fir Shipping Ltd v. Kawasaki Ltd [1962] 2 Q.B. The claimant leased a ship for 2 years to the defendant. What is the test for determining if a breach of a contract leads to a right of repudiation? The contract said the ship should be “seaworthy” and “be in every way fitted for ordinary cargo service”. However, due to the fact The ship was delivered in February 1967 and sailed to the US and then to Japan on the same day. [2] Hong Kong Fir Shipping Co Ltd. v Kawasaki Kisen Kaisha [1962] EWCA Civ 7 [3] Great Peace Shipping v Tsavliris Salvage [2002] EWCA Civ 1407 [4] Detailed on p.2 In this representative case, the ship owner hired out the Hong Kong Fir, ‘being in every way fitted for ordinary cargo service’. Clause 1 of the contract obliged the owners to deliver a “seaworthy” vessel and Clause 3 further obliged them to maintain the vessel’s seaworthiness and good condition. Although it was … 4.C is for example, in Dominion Corporate Trustees Ltd -v- Debenhams Properties Ltd [2010] EWHC 1193 (Ch), the Court interpreted an apparently intermediate condition in which the elimination of dismissal for a minor offence appeared too drastic. The key issue is turn upon whether MicroHard Company Pte Ltd has breached any term in the Software Support Services Agreement it had signed with Ravi (the Customer). Year 3 Hongkong Fir Shipping Co. Ltd. v Kawasaki Kisen Kaisha Ltd. [1962] 2 Q.B. Ship owners let the vessel, Hongkong fir, to charterers for a period of 24 months. Qb 26 was produced by one of our expert legal writers, hong kong fir v kawasaki... ] 1 All ER 474 CA legal studies, the labelling of the obligations to deliver and a! 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