MacDonald v Pollock (The “Monaco”) – Court of Session (Inner House)(Lord Eassie, Lord Brodie and Lord Osborne) – 14 February 2012

Sale of ship – Buyer’s engineer inspecting vessel prior to conclusion of contract – Defects subsequently becoming apparent on sea voyage – Buyer rejecting vessel – Whether sellers in breach of implied term of satisfactory quality – Whether sale “in course of a business” – Whether sellers entitled to rely on fact that buyer examined vessel before contract was made – Whether buyer’s rejection of vessel equivocal – Sale of Goods Act 1979 section 14

On 17 September 2002 the defenders agreed to sell to the pursuer the Monaco, a former fishing vessel which had been converted for use as a cruise vessel by the provision of appropriate passenger accommodation. The price was £75,000. The defenders were a partnership trading under the style “Western Isles Cruising”. Prior to the sale of the vessel they exploited the vessel commercially by providing cruises to their customers. The pursuer carried on a similar business under the style of “Island Cruising” from Uig, Isle of Lewis.