Booth Steamship Co. v. Cargo Fleet Iron Co. [1916] 2 K.B. 570
Citation:Booth Steamship Co. v. Cargo Fleet Iron Co. [1916] 2 K.B. 570
Rule of thumb:If a company has gone into insolvency, can carriers be contacted & instructed not to deliver goods to a recipient? Yes, if the company is in insolvency, and a carriers gets an order from an insolvency practitioner not to deliver the goods, at common law this must be followed.
Background facts:
Parties argued:
Judgment:
‘The right of stoppage in transitu came into the English law in the seventeenth century from the custom of merchants, both English and foreign - a custom, therefore, which had grown up with no special reference or congruity to the English law (the right to stop goods in transit where a company has gone into insolvency).’ at p. 597, Scrutton J
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