T. B. Seath & Co. v. Moore

For a number of years prior to 1881 the pursuers of this action—T. B. Seath & Co., shipbuilders, Glasgow and Rutherglen—had dealings with the firm of A. Campbell & Son, engineers, Glasgow, under which the latter firm executed engineering work for ships which the former were building.

In September 1881 A. Campbell & Son undertook to furnish the pursuers with certain “tandem” machinery, consisting of cylinder boilers, &c., for a vessel they were building, the price (£1800) to be paid on the work being completed and the machinery fitted.

In March 1882, the pursuers having at the time a contract with a steamboat company to build a steamer called the “Brighton,” made a contract with A. Campbell & Son to supply the engines and machinery for £6300, payable by four instalments, the first when the cylinders, sole-plates, and condensers were cast, the second when the machinery should be tooled and ready for riveting, the third when the machinery was ready to be put on board, and the fourth when the whole work was ready for delivery to the purchasers of the steamer.

Payments were afterwards made under this contract, not according to the instalments arranged, but at intervals according to a system which prevailed between the firms as afterwards explained.

In August 1882 A. Campbell & Son undertook to the pursuers to put a new boiler into and to execute alterations thereby rendered necessary on the steamer “Satanella” belonging to a Mr Latham; for that they were to be paid £600 by one bill at four months when the boiler was on board, the balance by another at four months when the work was completed.