CANCELLATION OF CONTRACTS.

Hokitika Guardian, 21 December 1920, Page 3

CANCELLATION OF CONTRACTS.

In every walk ol life we are so accustomed to rely upon promises made to each other, says the “New Zealand Mercantile Gazette," that it is almost impossible to conceive how social and business matters could he carried on if the right to rescind at will engagements definitely entered into could be conceded. It is true there are some kinds of promises of which the law takes no notice, undertakings which are not intended to involve legal consequences, but which, if ignored by the promisee, subject him, unless explanations are made to the suspicion of being unreliable. He suffers in the opinion of those who think strict performance in the carrying out of any promise is characteristic of an honourable man. Legally constituted business contracts are binding, and cannot be rescinded except for reasons recognised by law; notwithstanding this, many people seem to think that some classes of contracts differ in this respect, that prior to the execution of a contract by the other party they have tho power to cancel. This question has been receiving a good deal of attention lately in Eng» and, as a great many Eastern firms who had sent confirmed orders, have cabled cancelling their requirements. The manufacturers in many cases have tacitly submitted to the treatment thus accorded to them, although, had they con-

sidcred it worth tlieir while to have dis r puted tfiq right of their correspondents to cancel, they would probably have had the sympathy and approval of all those who believe in the sanctity of contracts deliberately entered into. An order for «oods sent in the usual course of business is in law a proposal to buy, and if- accepted by the other side, a complete and binding contract results. Acceptance may be proved in many ways, not only by showing that the, proposal was expressly agreed to, but also by implication which may be drawn from the previous course of business between the same parties. Many people are inclined to think that a form order may be cancelled at any time before the goods are delivered; in some eases they may be so, but, if a valid contract has been entered into, neither side can rescind with-* out, consent, except for causes which rest upon adequate legal grounds.