Lazenby Garages Ltd v Wright [1976]

Lazenby Garages Ltd v Wright [1976] 1 WLR 459 dealt with the principle governing contracts for the sale of goods, particularly when assessing damages for the repudiation of such contracts. The central issue in this case was the application of the mitigation of loss principle when a contract for the sale of a unique good is breached.

Lazenby Garages Ltd had entered into a contractual agreement to sell a secondhand BMW to Wright for a specified sum of £1,670. However, Wright repudiated the contract by refusing to accept delivery of the car. Subsequently, Lazenby Garages Ltd sold the same car to another buyer at a higher price of £1,770, six weeks after the repudiation occurred.

The legal question at hand pertained to the damages sought by Lazenby Garages Ltd for the difference between the contract price and the higher price at which they eventually sold the car. The guiding principle in such scenarios is that, generally, the innocent party's loss is mitigated if they can sell the goods to a third party at a higher price after the repudiation of the contract.

Lord Denning MR, who led the Court of Appeal, examined the nature of the goods involved in the case. He distinguished between unique goods and fungible goods, emphasising that the principle allowing for the mitigation of loss through a subsequent sale at a higher price might not straightforwardly apply to secondhand cars. Unlike new cars, each secondhand car, even if of the same make, is considered distinct and may have varying market values.

Lord Denning opined that, in the context of secondhand cars, it was not within the reasonable contemplation of the parties that Lazenby Garages Ltd would sell one less car due to the repudiation. Therefore, damages were limited to nominal damages, as the principle of mitigation of loss, which assumes the sale of an identical unit, did not align with the characteristics of fungible goods like secondhand cars.

In summary, the Court of Appeal's decision in this case underscored the nuanced application of the mitigation of loss principle concerning subsequent sales at higher prices, particularly when dealing with goods that are considered fungible, such as secondhand cars, where individual units are distinct from one another.
Back to blog
UOLLB SQE Turbocharge

UOLLB SQE Turbocharge

Get ready for the SQE1 with high-performance SQE Study Guides developed by UOLLB and published by UOL Press to revolutionise your study method and exam strategy.

Turbocharge SQE Performance

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding.
Speed up your revision with us now👇

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.