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Q&A

Routledge·Cavendish Questions & Answers Series

Commercial Law

2009–2010

Q&A

Routledge·Cavendish Questions & Answers Series

Commercial Law

2009–2010

Jo Reddy, LLB, LLM

Barrister

AND

Howard Johnson, LLB (Birm)

Senior Lecturer and Deputy Head of Bangor Law School

Fifth edition published 2009 by Routledge-Cavendish 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN

Simultaneously published in the USA and Canada by Routledge-Cavendish

270 Madison Avenue, New York, NY 10016

This edition published in the Taylor & Francis e-Library, 2009.

To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.

Routledge-Cavendish is an imprint of the Taylor & Francis Group, an informa business

©1994, 2000, 2003 Paul Dobson and Jo Reddy

©2007, 2009 Routledge-Cavendish

Previous editions published by Cavendish Publishing Limited

First edition

1994

Second edition

2000

Third edition

2003

Previous editions published by Routledge-Cavendish

Fourth edition 2007

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data

Reddy, Jothi.

Q & A, commercial law 2009–2010 / Jo Reddy and Howard Johnson. — 5th ed.

p.cm. – (Routledge-Cavendish questions and answers series)

1.Commercial law–England–Examinations, questions, etc. I. Johnson, Howard (Howard Allun), 1948– II. Title. III. Title: Q & A, commercial law 2009–2010.

IV. Title: Commercial law 2009–2010. KD1554.R43 2009 346.4207076–dc22

2008032505

ISBN 0-203-86813-7 Master e-book ISBN

ISBN 10: 0–415–48041–8 (Print Edition)

ISBN 13: 978–0–415–48041–3

CONTENTS

Table of Cases

vii

Table of Statutes

xvii

Table of Statutory Instruments

xxiv

Table of EU Legislation

xxv

1

General Questions

1

2

Description and Quality

19

3

Passing of Property and Risk

59

4

Nemo Dat Quod Non Habet

75

5

Making and Cancelling a Credit Agreement

87

6

Default and Termination of Credit Agreements

101

7

Connected Lender Liability

121

8

General Principles of Agency

133

9

Relationship with Third Parties

149

10

Fob Contracts

181

11

Cif Contracts

201

Index

 

237

v

TABLE OF CASES

AG v Leopold Walford (London) Ltd (1923) 14 Lloyd’s Rep 359 ................................... 192 AMB Imballaggi Plastici SRL v Pacflex Ltd [1999] 2 All ER (Comm) 249 ........... 162, 163 Addis v Gramophone [1909] AC 488 ............................................................................. 23 Agricultores Federados Argentinos v Ampro SA

[1965] 2 Lloyd’s Rep 757 ......................................................................... 184, 192, 196 Ailsa Craig Fishing v Malvern Fishing [1983] 1 All ER 449 ........................................... 43 Alan (W J) & Co Ltd v El Nasr Export and Import Co [1972] 2 QB 189;

[1972] 2 All ER 127 ................................................................................................. 228 Albemarle Supply Co v Hind [1928] 1 KB 307 ............................................................ 118 Aldridge v Johnson (1857) 7 E & B 885 .......................................................................... 67 Allam & Co Ltd v Europa Poster Services Ltd [1968] 1 All ER 826;

[1968] 1 WLR 638 ................................................................................................... 136 Alpha Trading Ltd v Dunnshaw-Patten Ltd [1981] QB 290 ................................. 141, 147 Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd [1976] 2 All ER 552;

[1976] 1 WLR 676; [1976] 1 Lloyd’s Rep 443 ..................................................... 61, 62 Andrews v Hopkinson (1957) 1 QB 229 ................................................................... 31, 42 Andrews Bros Ltd v Singer & Co Ltd [1934] 1 KB 17 ..................................................... 41 Anglo-African Shipping Co of New York Inc v J Mortner Ltd

[1962] 1 Lloyd’s Rep 610 ......................................................................................... 163 Anglo-Continental Holidays Ltd v Typaldos (London) Ltd [1967] 2 Lloyd’s Rep 61 ........ 23 Anton Piller (UK) Ltd v Excess Insurance Co Ltd (t/a ITT London and Edinburgh)

[1999] Lloyd’s Rep IR 122 ........................................................................................... 4 Arcos Ltd v Ronaasen (E.A.) & Son [1933] AC 470 ......................................... 45, 197, 219 Armagas v Mundogas [1986] 2 All ER 385 .............................................. 155, 168, 170–2 Armour v Thyssen [1990] 3 All ER 481 ................................................................... 61, 63 Ashington Piggeries v Christopher Hill [1972] AC 441 ................................... 22, 46, 215 Aswan v Lupdine [1987] WLR 1 .................................................................................... 36 Attorney General of Hong Kong v Reid [1994] 1 AC 324; [1994] 1 All ER 1 .............. 138 Aron (J) & Co Inc v Comptoir Wegimont [1921] 3 KB 435; 90 LJKB 1233 ......... 198, 221

vii

Q&A COMMERCIAL LAW 2009–2010

B&P Wholesale Distributors v Marko [1953] CLY 3266 ............................................... 211 Bankers Trust Co v State Bank of India [1991] 1 Lloyd’s Rep 587;

[1991] 2 Lloyd’s Rep 443 ......................................................................................... 232 Barclays Bank v Quincecare Ltd [1992] 4 All ER 363; 1988 FLR 166;

[1988] 1 FTLR 507 .................................................................................................. 180 Barker v Bell [1971] 2 All ER 867, [1971] 1 WLR 983, 115 Sol Jo 364 ...................... 119 Bartlett v Sydney Marcus [1965] 1 WLR 1013 ............................................................... 31 Beale v Taylor [1967] 1 WLR 1193 ................................................................................ 35 Belton (ST) v Teheran Europe Co see Teheran Europe Co v Belton (ST)

Bence Graphics International Ltd v Fasson UK Ltd [1998] QB 87;

[1997] 1 All ER 979 ................................................................................................. 189 Bentinck v Cromwell Engineering [1971] 1 QB 324 .................................................... 117 Bentley (Dick) Productions Ltd v Harold Smith (Motors) Ltd [1965] 2 All ER 65;

[1965] 1 WLR 623; 109 Sol Jo 329 ............................................................................ 92 Bernstein v Pamson Motors (Golders Green) Ltd

[1987] 2 All ER 22 ............................................................. 23, 33, 38, 44, 54, 188, 189 Biddell Bros v Clemens Horst see Clemens Horst (E) Co v Biddell Bros

Black Horse Ltd v Langford [2007] EWHC 907 (QB);

[2007] All ER (D) 214 (Apr) .................................................................................... 125 Boardman v Phipps [1966] 3 All ER 721 ..................................... 137, 138, 140, 151, 162 Bolton Partners v Lambert (1889) 41 Ch D 295 ............................................ 151, 154, 157 Bondina Ltd v Rollaway Shower Blinds Ltd [1986] 1 WLR 517 ................................... 145 Borden v Scottish Timber Products Ltd [1981] Ch 25 ..................................................... 63 Boston Deep Sea Fishing and Ice Co v Ansell (1888) 39 Ch D 339 ................ 219, 224, 225 Bowes v Shand (1877) 2 App Cas 455 ........................................... 193, 198, 221, 225, 227 Bowmakers Ltd v Barnet Instruments [1945] KB 65; [1944] 2 All ER 579;

114 LJKB 41 .................................................................................................... 105, 108 Bowmakers v Wycombe Motors [1946] KB 505 ........................................................... 118 Brandt & Co v Morris & Co [1917] 2 KB 784 ............................................................... 194 Branwhite v Worcester Works Finance [1969] 1 AC 532 .......................................... 91, 94 British Imex Industries Ltd v Midland Bank Ltd [1958] 1 QB 542 ............................... 202 Brown (B S) & Sons Ltd v Craiks Ltd [1970] 1 All ER 823; [1970] 1 WLR 752 ............. 21 Bunge & Co Ltd v Tradax England Ltd [1975] 2 Lloyd’s Rep 235 ......................... 192, 210 Burstall v Grimsdale (1906) 11 Com Cas 280 ............................................... 222, 223, 225 Butterworth v Kingsway Motors [1954] 1 WLR 1286 ............................................ 81, 107 Byrne & Co v Leon Van Tienhoven & Co (1880) 5 CPD 344;

[1874–80] All ER Rep Ext 1432 .............................................................................. 151

viii

TABLE OF CASES

Cammell Laird v Manganese Bronze and Brass [1934] AC 402 ....................................... 31 Caparo Industries plc v Dickman [1990] 2 AC 605; [1990] 1 All ER 568 ............ 172, 173 Car and Universal Finance v Caldwell [1965] 1 QB 525 ................................................. 84 Cehave v Bremer, The Hansa Nord [1976] 1 QB 44 ............................................. 32, 43, 47 Central Newbury Car Auctions v Unity Finance [1957] 1 QB 371 .................................. 76 Chartered Trust v Pitcher [1987] CCLR 71 ................................................................... 105 Chaudry v Prabhakar [1988] 3 All ER 718 ........................................................... 136, 178 Chubb Cash Ltd v John Crilley & Son [1983] 1 WLR 599 .............................................. 82 City Trust v Levy [1988] 1 WLR 1051 ......................................................................... 169 Clegg v Andersson (t/a Nordic Marine) [2003] EWCA Civ 320;

[2003] 1 All ER (Comm) 721 ............................................................................... 33, 38 Clemens Horst (E) Co v Biddell Bros [1912] AC 18, [1911–13] All ER Rep 93 ... 221, 224 Clough Mill v Martin [1985] 1 WLR 111 ................................................................ 61, 62 Coles v Enoch [1939] 3 All ER 327 .............................................................................. 141 Collen v Wright [1857] 8 E & B 647 ............................................................ 146, 172, 180 Colley v Overseas Exporters [1921] 3 KB 302; 90 LJKB 1301;

[1921] All ER Rep 596 ............................................................................................ 192 Crowther v Shannon Motor Co (a firm) [1975] 1 All ER 139, [1975] 1 WLR 30 ............ 40 Cunningham, J and J v Robert A Monroe [1922] 28 Com Cas 42 ................................. 184

Daun v Simmins (1879) 41 LT 783 ....................................................................... 167, 176 Dawson v Dutfield [1936] 2 All ER 232 ......................................................................... 51 De Bussche v Alt [1878] 8 Ch D 286 ............................................................ 136, 154, 156 Dean (Henry) & Sons (Sydney) Ltd v O’Day Pty Ltd [1927] 39 CLR 330 ...................... 203 Diamond Alkali Export Corpn v Bourgeois [1921] 3 KB 443;

[1921] All ER Rep 283 .................................................................................... 222, 225 Dick Bentley Productions Ltd see Bentley (Dick) Productions Ltd

Director General of Fair Trading v First National Bank [2000] QB 672;

[2000] 2 All ER 759 ......................................................................................... 5, 7, 114 Donald H Scott Ltd see Scott (Donald H) Ltd

Donoghue v Stevenson [1932] AC 562 ........................................................................... 25 Dyster v Randall & Sons [1926] Ch 932 ....................................................................... 164

East v Maurer [1991] 2 All ER 733 ................................................................................ 38 Edgington v Fitzmaurice (1885) 29 Ch D 459, 50 JP 52,

[1881–5] All ER Rep 856 .................................................................................... 22, 37

Elafi (The) see Karlshamns Olje Fabriker v Eastport Navigation Corporation

El Amria (The) and El Minia (The) [1982] 2 Lloyd’s Rep 28; [1982] Com LR 121 ........ 192

ix