Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd [2002] EWCA Civ 1407 is an English contract law

English contract law

English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...

 case, concerning the frustration

Frustration in English law

Frustration in English law is an English contract law doctrine, which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract...

 of an agreement.

Facts

Tsavliris are in the business of salvaging ships and aiding ships in difficulty in the South Indian Ocean. Tsavliris were advised a vessel named "Great Peace" was in trouble about 35 miles from a Tsavliris Salvage Tug. Tsavliris contacted the owners of the "Great Peace" and agreement was made to hire the tug for a minimum of five days. It then became apparent that the "Great Peace" was not 35 miles, but 410 miles away. Tsavliris then found another contract for their tug and terminated the contract with Great Peace Ltd. GP Ltd sued. Tsavliris argued it was a common mistake as to the location of the stricken vessel and this invalidated the contract.

Judgment

Lord Phillips MR for the Court of Appeal held that the mistake was not sufficiently fundamental to avoid the contract. It was going to take 22 hours to do 410 miles, but that was not a delay to make performance ‘essentially different from those the parties envisaged when the contract was concluded.’ In the course of the judgment, McRae v Commonwealth Disposals was approved, Solle v Butcher was disapproved, and it was opined that common mistake could not be explained on the grounds that it is an implied term, although it does apply only when a contract is silent.

See also

• English contract law
  English contract law
  English contract law is a body of law regulating contracts in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries across the Commonwealth , and the United States...
  
  
• Frustration in English law
  Frustration in English law
  Frustration in English law is an English contract law doctrine, which acts as a device to set aside contracts where an unforeseen event either renders contractual obligations impossible, or radically changes the party's principal purpose for entering into the contract...
  
  
• Cooper v Phibbs [1867] UKHL 1, (1867) LR 2 HL 149