Raffles v Wichelhaus: Difference between revisions

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|court=Court of Exchequer
|court=Court of Exchequer
|citation=2 Hurl. & C. 906*159 Eng. Rep. 375
|citation=2 Hurl. & C. 906*159 Eng. Rep. 375
|date=1864
|date=January 20, 1864
|subject=Contracts
|subject=Contracts
}}
|facts=*In the early 1860s, the Union had cut off shipments of cotton from the South to the textile mills in Britain
'''Facts''': Plaintiff offered to sell a certain amount of cotton to Defendant. The cotton would be brought from India on a ship called the Peerless. There were apparently two ships with that name, and the Defendant and the Plaintiff were each thinking about different ones. One was supposed to leave from Bombay in October, and the other was supposed to leave in December. When the cotton arrived in England, the Defendant refused to pay. The ship that he was expecting to bring him the cotton had left India in October.
**As a result, 100,000s of textile workers in Britain had become un-employed
*Wichelhaus = defendant = British cotton broker purchasing cotton from production sites other than the Confederate States of America
*Raffles = plaintiff = cotton producer in Bombay, India
*Raffles signed a contract to sell 125 bales of cotton originating in India to Wichelhaus
*Raffles offered to sell a certain amount of cotton to Wichelhaus (Defendant). The cotton would be brought from India on a ship called the ''Peerless''.
*There were apparently 2 ships with that name, & the Defendant and the Plaintiff were each thinking about different ones.  
**Peerless1: One was supposed to leave from Bombay in October, and
**Peerless2: the other was supposed to leave in December.
**(We are using Peerless1 & Peerless 2 here for our case clarity. Both ships, again, were simply named ''Peerless''.)
*Peerless1 (October) didn't deliver any cotton to Wichelhaus.
*When the cotton arrived in England aboard Peerless2 (in December), the Defendant (Wichelhaus) refused to pay.  
**The ship that Wichelhaus was expecting to bring him the cotton had left India in October (Peerless1).
*Wichelhaus didn't want to purchase the cotton in December price of the price hike between October & December!
|procedural_history=* Raffles sued Wichelhaus in the British court of the exchequer.
* Raffles announced that he had supply the correct amount & grade of cotton from Bombay to Liverpool aboard ''Peerless''.
* Raffles complained that Wichelhauss had breached the contract by refusing to accept & pay for the cotton.
|issues=Can parol evidence be offered to establish the meaning of a [https://www.quimbee.com/keyterms/latent-ambiguity latent ambiguity] in what otherwise appears to be an un-ambiguous contract?


'''Issue''': Should the contract be enforced?
Should the contract be enforced?
|arguments=* Raffles (the cotton seller) argued that the contract didn't specify a shipping date or arrival date.
* Raffles didn't want [[Contracts/Parol evidence rule|parol evidence]]
* Wichelhaus argued that the contract assumed that there was only 1 relevant vessel named ''Peerless''
|holding=Wichelhaus's <u>parol evidence</u> (oral [https://www.quimbee.com/keyterms/extrinsic-evidence extrinsic evidence]) is admissible.


'''Holding''': The contract is not enforceable.
The contract is not enforceable.
 
|judgment=Judgment for the Defendant (Wichelhaus)
'''Reasons''': Each person was agreeing to a different thing. The intent of every party was not what the other party thought. There was no meeting of the minds.
|reasons=* Each person was agreeing to a different thing.  
 
* The intent of every party was not what the other party thought.  
'''Judgment''': Judgment for the Defendant.
* There was no meeting of the minds.
|case_text_links={{Infobox Case Brief/Case Text Link
|link=https://www.quimbee.com/cases/raffles-v-wichelhaus-the-i-peerless-i-case
|source_type=Video summary
|case_text_source=Quimbee
}}{{Infobox Case Brief/Case Text Link
|link=https://law.justia.com/cases/foreign/united-kingdom/159-eng-rep-375-1864.html
|case_text_source=Justia
}}
|case_videos={{Infobox Case Brief/Case Video
|service=YouTube
|id=zVdCFrxT8Zw
}}{{Infobox Case Brief/Case Video
|service=YouTube
|id=DRHRFJ75eUw
}}
}}

Latest revision as of 03:14, December 27, 2023

Raffles v Wichelhaus
Court Court of Exchequer
Citation 2 Hurl. & C. 906
159 Eng. Rep. 375
Date decided January 20, 1864

Facts

  • In the early 1860s, the Union had cut off shipments of cotton from the South to the textile mills in Britain
    • As a result, 100,000s of textile workers in Britain had become un-employed
  • Wichelhaus = defendant = British cotton broker purchasing cotton from production sites other than the Confederate States of America
  • Raffles = plaintiff = cotton producer in Bombay, India
  • Raffles signed a contract to sell 125 bales of cotton originating in India to Wichelhaus
  • Raffles offered to sell a certain amount of cotton to Wichelhaus (Defendant). The cotton would be brought from India on a ship called the Peerless.
  • There were apparently 2 ships with that name, & the Defendant and the Plaintiff were each thinking about different ones.
    • Peerless1: One was supposed to leave from Bombay in October, and
    • Peerless2: the other was supposed to leave in December.
    • (We are using Peerless1 & Peerless 2 here for our case clarity. Both ships, again, were simply named Peerless.)
  • Peerless1 (October) didn't deliver any cotton to Wichelhaus.
  • When the cotton arrived in England aboard Peerless2 (in December), the Defendant (Wichelhaus) refused to pay.
    • The ship that Wichelhaus was expecting to bring him the cotton had left India in October (Peerless1).
  • Wichelhaus didn't want to purchase the cotton in December price of the price hike between October & December!

Procedural History

  • Raffles sued Wichelhaus in the British court of the exchequer.
  • Raffles announced that he had supply the correct amount & grade of cotton from Bombay to Liverpool aboard Peerless.
  • Raffles complained that Wichelhauss had breached the contract by refusing to accept & pay for the cotton.

Issues

Can parol evidence be offered to establish the meaning of a latent ambiguity in what otherwise appears to be an un-ambiguous contract?

Should the contract be enforced?

Arguments

  • Raffles (the cotton seller) argued that the contract didn't specify a shipping date or arrival date.
  • Raffles didn't want parol evidence
  • Wichelhaus argued that the contract assumed that there was only 1 relevant vessel named Peerless

Holding

Wichelhaus's parol evidence (oral extrinsic evidence) is admissible.

The contract is not enforceable.

Judgment

Judgment for the Defendant (Wichelhaus)

Reasons

  • Each person was agreeing to a different thing.
  • The intent of every party was not what the other party thought.
  • There was no meeting of the minds.

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