August 28, 2025
British Steel Corp v Cleveland Bridge [1984] 1 All ER 504; QB
Facts Cleveland Bridge and Engineering Co Ltd (CBE) were contracted to construct the steel framework for a building in Jeddah, Saudi Arabia. They required a significant quantity of specialised cast steel nodes for this project. CBE sent a ‘letter of intent’ to British Steel Corp (BSC) requesting that BSC commence production of these nodes immediately, in anticipation of a formal contract being finalised. Negotiations on the formal contract proceeded but ultimately failed. A key point of contention was the liability clause; BSC insisted on a clause excluding liability for consequential loss arising from late delivery, whereas CBE sought to impose
