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"Contract damages when there are sub-sales, UK" [2019] ELECD 2885; in Goldberg, P. Victor (ed), "Rethinking the Law of Contract Damages" (Edward Elgar Publishing, 2019) 123

Book Title: Rethinking the Law of Contract Damages

Editor(s): Goldberg, P. Victor

Publisher: Edward Elgar Publishing

Section: Chapter 7

Section Title: Contract damages when there are sub-sales, UK

Number of pages: 19

Abstract/Description:

When A sells to B and B sells to C, should the BC contract (the sub-sale) be taken into account when reckoning A’s liability to B? In Rodocanachi v Milburn, a case involving non-delivery, the English court said No. However, it carved out an exception for string contracts in Hall v Pim. In Bence Graphics v Fasson, the court recognized the sub-sale. This chapter argues that this is a mistake, that courts should ignore the sub-sales, regardless of how closely linked they are to the contract being litigated.


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