Cases - Watts, Watts & Co. Ltd v Mitsui & Co. Ltd

Record details

Name

Watts, Watts & Co. Ltd v Mitsui & Co. Ltd

Date

(1917)

Citation

AC 227

Keywords

Shipping - contract of charterparty - breach - arrests and restraints of princes - liquidated damages - whether penalty or liquidated damages clause - measure of damages

Summary

This case concerned a charterparty agreement for the provision of a steamer to load a cargo of sulphate of ammonia at Marioupol. The House of Lords held that the liquidated damages provision amounted to a penalty. In the circumstances, the employer has a choice of either claiming unliquidated damages or the actual loss which he proves up to the amount of the penalty.