DEAL IN AMERICAN DENIMS

Dominion, Volume 14, Issue 280, 20 August 1921, Page 13

DEAL IN AMERICAN DENIMS

MAGISTRATE'S JUDGMENT. Reserved judgment was given yesterday by Mt. E. Page, S.M., in tho case of Cameron and Co., New York, against A. A<l ess and Son, Dunedin soft goods merchants, a claim for .£199 7s. 10d. On September 28, 1920, the parties entered into a contract whereby the defendants agreed to purchase from the plaintiffs forty pieces of blue denim and fifty pieces of navy print. The value of the goods, with expenses, amounted to -£393 15s Tho goods were tendered for delivery on January 11, 1921, but defemdante refused to accept delivery. Iho goods were sold by auction, and realised -£197 7s. 2d. Plaintiff claimed for tho balance, with interest. , The defendants urged three grounds ior resisting the claim —(1) That there was no concluded contract between the parties; (2) that the insurance that was effected did not comply with the contract; and (3) that tho defendants were within their legal rights in treating tho contract as at an end in consequence of the action of plaintiffs in insisting on certain financial arrangements being made by the defendants and in stating that unless these arrangements were made ehipment of th® goods would bo suspended. With respect to the first point, the Magistrate held that a contract was entered into. With respect to the second contention, Mr. Page held that the defendants were not entitled to refuse tho drafts merely because tho insurance had not precisely followed the terms of the contract. On the third point, it was contended by plaintiffs that the various requests made by plaintiffs to defendants to establish a letter of credit or to arrange with the bank to cable their London branch asking them to negotiate the drafts were merely an exercise by PJaintiffs of the right that was given them under the conditions of their contract. Mr Pago held that the requests went further, and were rather for assistance to enable the vendors' New York house to ease its financial position.. The defendants were under an obligation to find the money in Dunedin, and nowhere else. They were under no obligation to establish ft letter of. credit out of New Zealand. If the request of the plaintiffs had 'been no more tnan a request the matter might have ended there, Wt plaintiffs had stated to defendants: "It you are unable to assist our principals so far, they will be reluctantly forced to suspend shipment of your orders and store the goods at your expense when ■iecXsary " This the Magistrate held was a' definite intimation to the defendants that the plaintiffs did not intend to wrry out the terms of their contract except upon a condition which they were not entitled to insist on. The defendants wore entitled to treat the contract aa at * Judgment wan entered for defendants, ItIfUSS/i 5 Sve appeared forlATand ». G. Watson for (Tie defendants.