WOOD-WOOL FROM NORWAY

Dominion, Volume 14, Issue 266, 4 August 1921, Page 6

WOOD-WOOL FROM NORWAY

CLAIM FOR EXCHANGE. A case involving liability to pay exchange oil' tho value of a shipment of goods was decided yesterday by Mr. E. Page, 8.M., in a reserved judgment. Ellis’ and Manton, Ltd. (Mr. H. E. Anderson), had claimed from the New Zealand Fruitgrowers' Federation, Ltd. (Mr, T. Neave), the sum of £7 Is. 4d„ being amount of exchange on the sale and purchase of a quantity of wood wool from Norway. The facts were that the plaintiffs sold to the Fruitgrowers’ Federation ten tons oij wood wool at £275, c.i.f., Wellington The wood wool was imported from Norway, and tho draft forwarded from Norway along with the bill of lading and other documents was for £275, plus £7 Is. 4d. exchange. The defendants took delivery of the-, goods and paid £275, but declined to pay the exchange, denying liability therefor. On delivery of the wood wool defendants weighed a portion, discovered a shortage of over a ton, and counter-claimed for (£44 145. l by way of refund for short weight. Tho Magistrate held that both. tho claim and counter-claim depended primarily upon a consideration of th® true relationship that had been created between the parties. The plaintiff's contended that they acted throughout purely as agents to bring about a contract between their prinoipale in Norway (Storm and Bull) and the defendants. The latter contended that they purchased tho goods from Ellis and Manton, and that th© reItftTonßlffp between them was that of vendor and purchaser. The contract was made by correspondence. Mr. Page held that upon the true construction of the correspondence tho plaintiffs acted as agents, and that at the time tho contract waa completed defendants know or ought to have known that tho plaintiffs were acting as agents; accordingly on their counter-claim tho defendants were nonsuited. With regard to tho plaintiffs’ claim, Mr. Pago held that under a c.i.f. contract a purchaser was liable to pay exchange, that was, ho must bear tho cost of remit ting tho money to the seller. Judgment was given for plaintiffs for the amount claimed.