MERCHANT TRADING COMPANY, LTD. v. WHITE SEA TIMBER TRUST, LTD.

(1932) 44 Ll.L.Rep. 181

KING'S BENCH DIVISION.

Before Mr. Justice Roche.

Sale of goods (redwood doors)- Cancellation by buyers - "Property in goods to be deemed for all purposes . . . to have passed to buyers when goods have been put on board. . . . In the event of the imposition in this country of any import duty on manufactured doors . . . it shall be considered and accepted as force majeure applicable to buyers and/or sellers that is to say if buyers and sellers cannot agree which side is to bear any such import duty or part thereof it will be the right of either party to cancel the contract for any quantity remaining undelivered on the date when such import duty becomes chargeable"- Passing of Import Duties Act, 1932, imposing duty on wooden doors- Parcel of goods already shipped - Notice given to sellers by buyers that they would refuse further goods except upon payment by sellers of import duty- No reply- Formal notice of cancellation given by buyers - Documents taken up by buyers under protest, Customs duties also being paid by buyers under protest - Effect - Arbitration - Case stated - Questions for opinion of Court: (1) whether cancellation covered goods already shipped; (2) even if it did, whether the buyers had not lost their right to reject goods already shipped by taking up shipping documents and paying Customs duties under protest