The Golden Victory [2007]

Facts

  • A charterparty was breached
  • War broke out shortly after the breach, which would have allowed discharge of the charterparty without penalty

Issue

  • Should damages be reduced to take into account the outbreak of ¬†war?

Decision

  • Yes

Reasoning

  • The court followed the principles of ‘fairness’ over ‘certainty’; now most large contracts contract out of the Golden Victory principle, ensuring that damages do not account for post breach events
RELATED CASE  Standard Chartered Bank v Pakistan National Shipping Corporation [2002]

Posted in Contract Law Revision Notes.

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