Great Peace Shipping Ltd v Tsavliris (International) Ltd explained

The Great Peace
Court:Court of Appeal
Date Decided:2002
Full Name:Great Peace Shipping Ltd v Tsavliris (International) Ltd
Citations:[2002] EWCA Civ 1407, [2003] QB 679
Opinions:Lord Phillips of Worth Matravers MR
Keywords:Frustration and common mistake

Great Peace Shipping Ltd v Tsavliris (International) Ltd [2002] EWCA Civ 1407 (also known as The Great Peace) is a case in English contract law which investigates when a common mistake within a contractual agreement will render it void.

It is notable for its "disapproval" of Solle v Butcher, a 1950 Court of Appeal case in which Lord Denning had established a doctrine of "equitable mistake". Great Peace ruled that the thinking underlying Solle v. Butcher "could not stand in the face of the earlier decision of the House of Lords in Bell v. Lever Bros.".[1]

Facts

The defendants, Tsavliris, were professional salvors in the business of maritime salvage and rendering aid to ships in difficulty in the South Indian Ocean. Learning that a vessel named Cape Providence was in trouble, Tsavliris entered into a salvage agreement with the owners on LOF terms. Tsavliris used the Ocean Routes service to try to locate the nearest rescue vessel, and were told that there was one about 35 miles away called the Great Peace. Using London brokers called Marint, Tsavliris contacted the Great Peace's owners, 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 from the Cape Providence, but 410 miles. Tsavliris then found a closer tug and terminated the contract with Great Peace Ltd, who responded by suing for gross breach of contract. Tsavliris argued it was a common mistake as to the location of the stricken vessel and this invalidated the contract.

Judgment

Lord Phillips of Worth Matravers MR held that the mistake was not sufficiently fundamental to void the contract. The Great Peace would have taken 22 hours to cover 410 miles, but that delay was insufficient to make performance of the contract "essentially different from [the services] the parties envisaged when the contract was concluded".[2]

Notes and References

  1. Martin-Clark, D., 'Great Peace', accessed 21 March 2023
  2. . (1951) 84 377 . auto . .
  3. England and Wales Court of Appeal (Civil Division), Great Peace Shipping Ltd. v Tsavliris (International) Ltd [2002 EWCA Civ 1407], judgment dated 14 October 2002, accessed 18 November 2023

    In the course of the judgment, McRae v Commonwealth Disposals Commission[2] was approved, and Solle v Butcher was disapproved:

    Comparison with the law on frustration

    Lord Phillips observed that and applied this principle in his ruling. He commented further that

    See also

    References