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Govt of Zanzibar v British Aerospace (Lancaster House) Ltd

[2000] 1 WLR 2333

Case summary last updated at 02/01/2020 15:36 by the Oxbridge Notes in-house law team.

Judgement for the case Govt of Zanzibar v British Aerospace (Lancaster House) Ltd

P contracted with D1 and D2 for D1 to buy aircrafts from D2, which P would lease and pay rent on from D1. However there were many faults and P sent the aircraft to D2 for repair. The faults persisted and P ceased payments to D1, who repossessed and resold the aircraft. P sued D2 for rescission or damages. Court held that rescission was not an option (due to exclusion clauses that were reasonable and valid under the Unfair Contracts Act) and, declining to follow Witter, that damages under s.2(2) were only available as an alternative to rescission and could not be awarded where the right of rescission had been lost. 
 
Judge Jack QC seems right in asserting that s.2(2) is an alternative and therefore can only apply to cases where the right to rescission is made out- see wording. 

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