DAIRY CONTRACTS

Hokitika Guardian, 11 February 1929, Page 3

DAIRY CONTRACTS

SHIPPING DIFFICULTY. RESPONSIBILITY FOR DELAY. WELLINGTON, Feb. 8. The Daily Produce Board has taken legal opinion for the guidance of a number of dairy factories which sold butter and cheese on f.o.b. contracts providing for certain monthly shipments which they find difficult to maintain in some cases. According to a statement issued by the hoard’s secretary, it would appear as if there had been an expectation on the part of factories that the whole of the produce graded in any one month Up to the end of November the Dairy Board shipped out both butter and cheese as quickly as possible, hut even under those circumstances itwould he advisable that dairy companies should estimate that gradings during the last half of those months would not be shipped until lie following month. After the end of November. when making commitments in connection with f.o.b. sales, to he on the safe side dairy companies should estimate that at the maximum there will he in store six weeks’ gradings in other words early February grading might not be shipped until mid-March Six weeks would rarely lie reached Daily gradings of a given date are likely to lie shipped from any port.

The question of responsibility for securing space for f.o.b. contracts has been under consideration for some time, a.s is was felt that the responsibility generally applying in these contracts might lie altered hv reason of the Dairy Board’s control of shipping The question was submitted to the board's solicitor, who was asked to reply to questions: (1) Whether the rcsponsibiltv for supplying shipping space in case of a f.o-.b. contract for the sale, of butter ordinarily rests upon the dairy company or upon the purchaser. (2) Whether such responsibility is in any way affected if in New Zealand under the Dairy Produce Export Control Act, 1923, the New Zealand Daily Produce Export Board is the only authority entitled to make a shipping contract. Summing up the legal opinion the hoard’s secretary states that there is ample authority to the effect that in f.o.b. contracts which contain no express stipulaion throwing upon the purchaser the duty of providing ships purchaser he duty of providing ships or shipping space for the carriage of tho goods a term will lie implied throw ing upon the purchaser such a duty, but in the case of T-.0.b. contracts for export, on tlfe assumption that the vendor would ship under the hoard’s agreement with shipping companies the position as that responsibility for finding space lies with the dairy company unless expressly provided otherwise.