Commercial Law Exam Notes
Case Notes
Question 1
Taylor v Provan (1864) 2 M 1226
Provan went to Taylor’s farm and offered to buy 31 cattle at £14 per head, but Taylor refused to accept less than £15. After trying unsuccessfully to purchase cattle elsewhere, Provan returned to Taylor’s farm the worse for drink and offered £15 per head, which was accepted by Taylor. Taylor later brought an action against Provan for the price of the cattle, and Provan claimed that he had been incapable, through intoxication, of entering into the contract. Held: There was no evidence to suggest that Provan was totally incapacitated through drink, to the extent that he was unable to understand what he was doing. The contract was valid.
J Loudon & Co v Elder’s Curator Bonis 1923 SLT 226 (OH)
Elder, a Dundee merchant, ordered goods from Loudon on March 23 and 28. On March 31, before any of the goods were delivered, Elder was certified insane and on April 1 Loudon were informed that the contracts were cancelled. The company sued Elder’s curator bonis for damages for breach of contract. Elder was proved to have been insane at the time the orders were given. Held: There was no liability for breach of contract as the orders were null and void.
Muirhead & Turnbull v Dickson (1905) 13 SLT 151
Muirhead & Turnbull supplied a piano to Dickson at a price of £26 to be paid at 15s per month. Dickson fell behind with the payments and the pursuers wished to take back the piano.They did so on the basis that either there was no contract between the parties, because there was no consensus, or that the contract was one of hire purchase, so that in either case the ownership of the piano remained with Muirhead & Turnbull. Dickson claimed that the contract was one of sale by instalments, so that ownership of the piano had passed to Dickson. Held: Muirhead and Turnbull had intended to make a contract of hire-purchase and Dickson had intended to make a contract of purchase paid by instalments, but on the evidence
Question 1
Taylor v Provan (1864) 2 M 1226
Provan went to Taylor’s farm and offered to buy 31 cattle at £14 per head, but Taylor refused to accept less than £15. After trying unsuccessfully to purchase cattle elsewhere, Provan returned to Taylor’s farm the worse for drink and offered £15 per head, which was accepted by Taylor. Taylor later brought an action against Provan for the price of the cattle, and Provan claimed that he had been incapable, through intoxication, of entering into the contract. Held: There was no evidence to suggest that Provan was totally incapacitated through drink, to the extent that he was unable to understand what he was doing. The contract was valid.
J Loudon & Co v Elder’s Curator Bonis 1923 SLT 226 (OH)
Elder, a Dundee merchant, ordered goods from Loudon on March 23 and 28. On March 31, before any of the goods were delivered, Elder was certified insane and on April 1 Loudon were informed that the contracts were cancelled. The company sued Elder’s curator bonis for damages for breach of contract. Elder was proved to have been insane at the time the orders were given. Held: There was no liability for breach of contract as the orders were null and void.
Muirhead & Turnbull v Dickson (1905) 13 SLT 151
Muirhead & Turnbull supplied a piano to Dickson at a price of £26 to be paid at 15s per month. Dickson fell behind with the payments and the pursuers wished to take back the piano.They did so on the basis that either there was no contract between the parties, because there was no consensus, or that the contract was one of hire purchase, so that in either case the ownership of the piano remained with Muirhead & Turnbull. Dickson claimed that the contract was one of sale by instalments, so that ownership of the piano had passed to Dickson. Held: Muirhead and Turnbull had intended to make a contract of hire-purchase and Dickson had intended to make a contract of purchase paid by instalments, but on the evidence