CREAM SUPPLY

Wanganui Chronicle, Volume LXXXIII, Issue 20150, 19 May 1928, Page 7

CREAM SUPPLY

CLAIM AGAINST FACTORY PLAINTIFF GETS JUDGMENT [ Per Press Association ] DANNEVIRKE, May 18. A case of importance to local dairy farmers was heard in the Magistrate’s Court before Mr H. A. Young, S.M., in which a Tahoraiti dairy farmer was plaintiff, and the Eclipse Dairy Company defendant. Plaintiff claimed £l9 12s 6d, being the difference in the price plaintiff received for cream supplied to the defendant company and what.he would have received had plaintiff been supplying another factory operating in this particular district in 1925-26. Defendant company issued an advertisement in the local paper, and also sent cards to fanners in the district, in which the defendant company guaranteed to pay a price equal to, if not better, than that given by any other company operating in tho district. Acting upon the representations of the Eclipse Dairy Company, plaintiff agreed to supply the defendant company, but plaintiff subsequently ascertained that the defendant company was not keeping faith with its guarantee, and when approached on the matter the managing director and the secretary of the company blamed the Control Board. Counsel said that the company held out an inducement that it would pay a price equal to, if not better than any other factory operating in tho district. This case was more in the nature of a test action, as there -were other suppliers to the Eclipse Dairy Comapny waiting the result of the present case, and who were ready to take action. The claim hinged on Uie question as to whether it was a contract as between buyer and seller, or one of agency. After a lengthy hearing judgment was given for plaintiff for tho full amount, with costs. Leave to appeal on a point of law was granted.