Shanklin Pier Ltd v Detel Products Ltd [1951] 2 KB 854

Key point

  • A third party to a contract can be sued under a collateral contract where there is a warranty given by a third party

Facts

  • Owners of the pier (C) employed contractors to paint the pier, under the contract C has the right to specify what paint to be used
  • Seller of paint (D) represented to C that its paint was suitable for painting the pier and that 2 coats would last for 7 years
  • As a result C instructed the contractor to purchase paint from D
  • After the paint peeled in 3 months, C sued D for compensation

Shanklin Pier Diagram

Held (High Court)

  • D was liable for compensation to C for breach of contract

McNair J

  • There was a collateral contract between C and D
  • D had made a warranty to C in its statement
  • C had given consideration for the warranty by instructing contractors to buy paint from D by amending the contract

Commentary

  • Consideration for collateral contract is entering into main contract