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Contracts Keyed to Burton
British Waggon Co. v. Lea & Co.
Citation:
5 Q.B.D. 149Facts
Parkgate Waggon Company (“Parkgate”) (plaintiff) entered into a written agreement to let fifty railway wagons to Lea & Company (“Lea”) (defendant) for a term of seven years at a rate of 600 pounds, payable quarterly. Parkgate entered into a second agreement in which it agreed to let Lea fifty other wagons, also payable quarterly. In return, Parkgate agreed to perform all required repairs and maintenance on the wagons. Eventually Parkgate began the process of winding up and assigned its rights under the two agreements to the British Waggon Company (“British Waggon”) (plaintiff). British Waggon agreed to take over the repairs of the wagons let to Lea and performed its obligations successfully for some time. After it learned of the assignment, Lea terminated the contract. Parkgate and British Waggon sued Lea, seeking enforcement of the wagon rental agreement.
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