Shanklin Pier Ltd v Detel Products Ltd [1951] 2 KB 854

Facts

  • Shanklin Pier Ltd, the owners of a pier, contracted third-party contractors for repairs and painting of the pier, with the right to specify the type of paint to be used.
  • Detel Products Ltd approached the pier owners and represented that their paint was suitable for the pier and that two coats would last seven years.
  • Relying on Detel's warranty, the pier owners instructed their contractors to purchase and use Detel’s paint.
  • The paint failed and began peeling within three months of application.
  • The pier owners sued Detel Products Ltd for compensation due to breach of warranty, despite Detel not being a party to the main contract with the contractors.

Issues

  1. Whether a collateral contract existed between Shanklin Pier Ltd and Detel Products Ltd despite the absence of a direct contractual relationship.
  2. Whether the representation or warranty by Detel about the paint's durability constituted a legally binding promise enforceable by the pier owners.
  3. Whether the instruction by the pier owners to the contractor to buy Detel’s paint amounted to sufficient consideration for the collateral contract.
  4. Whether Detel Products Ltd could be held liable for breach of warranty under a collateral contract.

Decision

  • The court held that a collateral contract existed between the pier owners and Detel Products Ltd based on the defendant’s express warranty about the paint.
  • The representation by Detel Products Ltd regarding the longevity and suitability of the paint constituted a warranty that induced the pier owners to instruct their contractor to purchase Detel's paint.
  • The consideration for the collateral contract was the pier owners’ instruction resulting in the contractor buying the paint, which was deemed a sufficient detriment and benefit.
  • Detel Products Ltd was found liable for breach of warranty when the paint failed within months, contrary to the promise.
  • Damages were awarded to the pier owners for costs related to repainting and consequential losses.

Legal Principles

  • A collateral contract can exist alongside a main contract, creating enforceable obligations where a warranty or representation induces entry into the primary contract.
  • Consideration for a collateral contract may be constituted by the act of entering into a main contract with a third party at the promisor’s inducement.
  • Liability for breach of warranty in a collateral contract does not require a direct contractual relationship between the promisor and the claimant.
  • Representations made with the intention of being relied upon can give rise to enforceable collateral contracts if acted upon.

Conclusion

Shanklin Pier Ltd v Detel Products Ltd [1951] established that a collateral contract based on a warranty is enforceable even absent a direct contractual relationship, provided that the promisor’s statements induce entry into the main contract and consideration is present through such inducement. This principle reinforces the enforceability of warranties and collateral arrangements in contract law.

The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising. This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.
No resources available.

Job & Test Prep on a Budget

Compare PastPaperHero's subscription offering to the wider market

PastPaperHero
Monthly Plan
$10
Assessment Day
One-time Fee
$20-39
Job Test Prep
One-time Fee
$90-350

Note the above prices are approximate and based on prices listed on the respective websites as of May 2025. Prices may vary based on location, currency exchange rates, and other factors.

Get unlimited access to thousands of practice questions, flashcards, and detailed explanations. Save over 90% compared to one-time courses while maintaining the flexibility to learn at your own pace.

All-in-one Learning Platform

Everything you need to master your assessments and job tests in one place

  • Comprehensive Content

    Access thousands of fully explained questions and cases across multiple subjects

  • Visual Learning

    Understand complex concepts with intuitive diagrams and flowcharts

  • Focused Practice

    Prepare for assessments with targeted practice materials and expert guidance

  • Personalized Learning

    Track your progress and focus on areas where you need improvement

  • Affordable Access

    Get quality educational resources at a fraction of traditional costs

Tell Us What You Think

Help us improve our resources by sharing your experience

Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal