Overstone v Shipway

291 words (1 pages) Case Summary in Cases

07/03/18 Cases Reference this

Last modified: 07/03/18 Author: In-house law team

Disclaimer: This work was produced by one of our professional writers as a learning aid to help you with your studies.

If you would like to view other samples of the academic work produced by our writers, please click here.

Overstone Ltd v Shipway [1962] 1 WLR 117

Contract law – Sale of goods – Damages


A hirer of a vehicle paid no monthly rental fee as agreed by the parties, after having paid the deposit and taken delivery of the motor vehicle. The owners brought a claim to the county court for the payments that were owned by the hirer. During this process, the owner sold the car and raised another action claiming for the damages caused by the hirer terminating the agreement. The county court held that the owner had sold the car for lower than its true value, at a loss, which created the damage to this action and therefore the owners were not entitled to these damages. The owners appealed this decision and the hirer counter-claimed for an action in estoppel to prevent the sale of the vehicle.


Whilst the hirer of the vehicle had breached the contract between the parties by not paying the instalments as required, the court was required to decide whether the owner of the car could claim for damages despite the fact that they had increased their loss by selling the car during proceedings for less than its value.


The court allowed the owners appeal. It was found that the right to damages were not expressly excluded by the agreed terms and that the damages were incurred not by the resale of the car at a loss but rather the hirer breaching their contract. However, the court did reduce the future instalments owed by the hirer on the basis that the owner had sold the car on for a loss.

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please:




Current Offers