JM & Sons Co v Benzline Auto: Breach of Contract for Mercedes Sale

JM & Sons Co and Jongkie Budiman sued Benzline Auto Pte Ltd in the High Court of Singapore on 22 November 2000, alleging breach of contract for the sale of two Mercedes cars. The plaintiffs claimed the defendants failed to deliver the cars as agreed, causing them to lose a sub-sale agreement. The court found in favor of the plaintiffs, awarding damages for the deposit paid and loss of profits.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

JM & Sons Co sued Benzline Auto for breach of contract over a failed Mercedes sale. The court ruled in favor of JM & Sons, awarding damages for lost profits.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Benzline Auto Pte LtdDefendantCorporationJudgment for PlaintiffLost
JM & Sons CoPlaintiffPartnershipJudgment for PlaintiffWon
Jongkie BudimanPlaintiffIndividualJudgment for PlaintiffWon

3. Judges

Judge NameTitleDelivered Judgment
Lai Siu ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Christopher BridgesChristopher Bridges
Kasturibai ManickamChristopher Bridges
Lin Ming Khin CharlesDonaldson & Burkinshaw

4. Facts

  1. The plaintiffs and defendants entered into an oral agreement for the sale of two black Mercedes cars.
  2. The defendants failed to deliver the cars within the agreed timeframe of 7 days.
  3. The plaintiffs had paid a deposit of $91,200 to the defendants.
  4. The plaintiffs had a sub-sale agreement with a buyer in Indonesia.
  5. The defendants were aware that the plaintiffs intended to resell the cars.
  6. The plaintiffs suffered a loss of profits due to the defendants' failure to deliver the cars.

5. Formal Citations

  1. JM & Sons Co and Another v Benzline Auto Pte Ltd, Suit 224/2000, [2000] SGHC 243

6. Timeline

DateEvent
Initial contact between the second plaintiff and Cycle & Carriage for Mercedes quotations.
Meeting between the second plaintiff, Rony Tedy, Low Joo Tin Amos, and Kevin Ng to discuss the purchase of two Mercedes cars.
Rony Tedy viewed Mercedes models with Kevin Ng at PSA Distripark.
The second plaintiff paid a deposit of $16,000 to the defendants for two Mercedes cars.
The second plaintiff paid an additional $26,000 in cash and transferred $49,200 to the defendants.
Kevin Ng signed a fax confirming the specifications of two black Mercedes cars and wrote 'Del time 7 days' on it.
The second plaintiff was informed that the defendants were unable to supply the two black Mercedes.
Plaintiffs' solicitors sent a letter of demand to the defendants.
Defendants' solicitors replied to the letter of demand.
Judgment issued by the High Court in favor of the plaintiffs.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendants breached the contract by failing to deliver the Mercedes cars as agreed.
    • Category: Substantive
    • Sub-Issues:
      • Failure to deliver goods
      • Repudiation of agreement
  2. Damages for Breach of Contract
    • Outcome: The court awarded the plaintiffs damages for loss of profits resulting from the breach, but did not award the penalty stipulated in the sub-sale agreement.
    • Category: Substantive
    • Sub-Issues:
      • Loss of profits
      • Mitigation of loss

8. Remedies Sought

  1. Monetary Damages
  2. Refund of Deposit

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Automotive

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Hadley v BaxendaleCourt of ExchequerYesHadley v Baxendale (1854) 9 Ex 341England and WalesCited for the principles governing the award of damages for breach of contract.
Victoria Laundry v (Windsor) LD v Newman IndustriesCourt of AppealYesVictoria Laundry v (Windsor) LD v Newman Industries [1949] 2 KB 528England and WalesCited for restating the rule in Hadley v Baxendale regarding the recoverability of damages for breach of contract.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Sale of Goods ActSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Mercedes
  • Breach of contract
  • Sub-sale agreement
  • Loss of profits
  • Deposit
  • Indent basis
  • Ready basis

15.2 Keywords

  • Mercedes
  • breach of contract
  • sale of goods
  • Singapore
  • commercial dispute

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Contract Law85
Damages70
Commercial Law60
Sale of Goods50

16. Subjects

  • Contract Law
  • Sale of Goods
  • Commercial Law