CANADIAN CARBIDE CONTRACT

Dominion, Volume 13, Issue 268, 6 August 1920, Page 3

CANADIAN CARBIDE CONTRACT

' A WAIi-TIME TRANSACTION. In a judgment delivered by Mr. W. G. B-iddell, S.M., in the Magistrate's Court yesterday morning, seme questions of interest to the commercial community were involved. The case was that of Cardalo and Spott v. Clarice nnd Co., a claim for .£l5O damages. On' October 8, 1917, tho plaintiffs agreed to buy from the defendants 15 tons of Canadian carbide at £18 per ton net, c.i.f. terms. Tho Magistrate, found that when tho contract was made both parties were under the bona-fide impression, that tho goods in riuea'.ion were on (heir way to New Zealand, and plaintiffs' attempts to get more definite information from, tho defendants did not make the position any clearer. There whs nothing to show that plaintiffs were under the impression flint defendants had shipped the carbide. No one knew the name of the vessel on which the carbide was supposed to havo been shipped, or when the vessel was expected in Now Zealand. After waiting some months, the earjjide did not come to. hand as was expected. On March 9, 1918. tho eiDort of, carbide from Canada was prohibited by the Canadian Government except under license- issued by that Govftrnment at. the reaucst of the War Trade Board, but there was no evidenco that either party knew that it was necessary to get a license to ship, carbido fi;om Canada after March. 1918. If the carbide had been shipped . before October. 1917. it would probably have arrived in New Zealand before the beginning of 1918. but it'was,'in fact, not then shipped, and great difficulty was being experienced in getting cargo space for New Zealand, and. the embargo placed upon tlie exportation of carbide •• 111 March. 1918. increased the difficulties of shippers, and materially the quantity imported into New Zealand. This j'as shown from the fact .liat ; m 1917 "Imports of Canadian carbide into New Zealand amounted to 313 tons, while the quantity decreased to 100 tons during the rear 1918. The Magistrate said that if the contract between the parties had contained no other terms binding delivery than the one c.i.f. and e., there would have been no douV. about deiendant's liability, but being made subject to tho condition of delivery ' to arrive, and relief from fulfilment for causes beyond control, a question arose whether the failure of the goods to arrive before ■ the cancellation of the contract bv plaintiffs relieved defendants from liability irrespective of the term c.i.f. and e. As there was some evidence of substantial shipping difficulties .affecting the export of carbide from Canada to New Zealand, and it' was necessary that the condition "to arrive/' should be fulfilled .before the obligation to ship at Wellington, c.i.f. and e., arose, he thought ju< gmei: should be for the defendants and decided accordingly. .The plaintiffs were ordced to pay costs totalling .£1- 3s. At the hearing Mr. M. M,v« nppo» r « l f «J « plaintiffs and Mr. G. Watson for the defendants. ;