A DISPUTED CONTRACT.

Evening Post, Volume LXXV, Issue 49, 27 February 1908, Page 2

A DISPUTED CONTRACT.

COAL COMPANY AND AGENTS.

A dispute arising out of the execution of an agreement between .1 coal company and its agents was head before Mr. Justiou Chapman yesterday. The agents, Henry Montague- Field and Thomas Andrew Hemming Field, claimed to recover damages for alleged breach of a contract by their principals, the Puponga Coal and Gold Mining Company, of Nelson, with mines in Collingwod. Mr. Myers (with him Mr. Ostler) appeared for the plaintiff, Mr. Morison (with him Mr. Richmond Fell) for the defendants. The agreement, as detailed by Mr. Myers, was made on 26th September, 1904, to the effect that the plaintiffs should act as sole agents for the defendant company for a period of six years, that they should nave tho disposal of the whole output of coal from tho defendant company's mines, at a commission of 10 per cent. Under a clause of the agreement the company had power to sell coal themselves or through other agents, provided that tho plaintiffs were paid 5 per cent, commission at the rate of 10s a ton. The company exercised this power, but gave notice to terminate tho payment of the 5 per cent, commission on the 31st August, 1906. Tho plaintiffs contended that it did not lapse legally until 26th September, 1908. The case for tha defence was that the agreement would only remain operativo so long as f.o.b. rates for the coal agreed upon should continue. The fluctuations in the price of coal made it evident that plaintiffs entered into the agreement with a full knowledge that from time to time they might be unable to agree on the f.o.b. rates with the defendants. It.was further contended that the fixing of f.o.b. rates was held over until the plaintiffs had advanced, their dredging at the berthago by the Puponga Wharf sufficient to show whether the cost of freight from the wharf would be much reduced. After counsel had addressed the court at length his Honour declared that he would reserve his decision in tho case.