Emerald Stainless Steel Ltd v South Side Distribution Ltd

JurisdictionScotland
Judgment Date16 December 1981
Date16 December 1981
Docket NumberNo. 10
CourtCourt of Session (Outer House)

OUTER HOUSE.

Lord Ross.

No. 10
EMERALD STAINLESS STEEL LTD
and
SOUTH SIDE DISTRIBUTION LTD

Sale of moveables—Transfer of title—Condition of contract—Title of goods to remain in seller until payment—Purchaser to hold as trustee until payment—Power to purchaser to resell as agent—Proceeds of resale to be held in trust for seller—Whether condition effectual.

International law—Contract—Sale of goods—Contract containing clause that contract governed by English law—No averments on the law of England—Presumption that foreign law the same as the law of Scotland.

A company supplied goods to another company subject to general conditions of sale. Condition 8 provided that title to the goods remained vested in the seller until the full purchase price was paid. Pending payment, the goods were to be held by the purchaser as trustee for the seller with liberty for the purchaser to pass title as agent for the seller on a sale by the purchaser bona fide for full value. The proceeds of any sale were to be held by the purchaser as trust monies for the seller. The contract contained a clause to the effect that the contract...

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2 cases
  • Armour v Thyssen
    • United Kingdom
    • House of Lords
    • 18 October 1990
    ...in Deutz Engines Ltd. v. Terex Ltd. 1984 S.L.T. 273Deutz Engines Ltd. v. Terex Ltd. 1984 S.L.T. 273, and Emerald Stainless Steel Ltd. v. South Side Distribution Ltd. 1983 S.L.T. 162. 6The appellants reclaimed, and the reclaiming action was heard by the Second Division (Lord Justice-Clerk Ro......
  • Armour et al. v. Thyssen Edelstahlwerke A.G.,
    • Canada
    • 18 October 1990
    ...Engines Ltd. v. Terex Ltd., [1984] S.L.T. 273, not appld. [para. 5]. Emerald Stainless Steel Ltd. v. South Side Distribution Ltd., [1983] S.L.T. 162, not appld. [para. Macartney v. Macredie's Creditors (1799), Mor. App. s.v. Sale, No. 1, refd to. [para. 7]. Murdoch & Co. Ltd. v. Greig (......