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Glaholm v. Hays | 133 Eng.Rep. 743 (1841)

Almost two hundred years ago, two parties contracted to transport goods with a ship. One party accused the other of breaching the contract, and they both made waves in court in Glaholm versus Hays.

Glaholm owned a ship, the Pomona. Hays handled freight. Glaholm and Hays formed a charterparty, which is a contract between a shipowner and another to use the ship to transport cargo. In the contract, all parties mutually agreed that the Pomona would sail from England to Trieste on the Adriatic Sea. In Trieste, Hays would load cargo onto the Pomona, and the Pomona would head back to the United Kingdom.

The contract allowed a set period for the trip and included a clause that read, quote, “the vessel to sail from England on or before the fourth day of February next,” unquote. The February fourth clause was unique because most of the other clauses before and after the February fourth clause began with the word that, using phrases like that the cargo and that the freight. The clause regarding February fourth didn’t begin with the word that.

The Pomona didn’t depart England on February fourth. Instead, it left almost twenty days later. When the Pomona arrived in Trieste, neither Hays nor anyone working for him was with cargo for the ship.

Glaholm filed an assumpsit , meaning a claim for breach of contract, against Hays. But Hays argued that the clause requiring the Pomona to leave England by February fourth was a condition precedent. And, since the Pomona left late, Hays didn’t have to perform on the contract and didn’t owe Glaholm any damages. The court decided whether Hays breached.

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