LONDON & NORTHERN TRADING COMPANY, LTD. v. ARCOS, LTD.

(1933) 45 Ll.L.Rep. 23

HOUSE OF LORDS.

Before Lord Buckmaster, Lord Russell of Killowen and Lord Wright.

Contract-Breach-Claim under agreement in settlement of disputes arising out of contract for the year 1931 for the sale of sleepers by defendants to plaintiffs - Plaintiffs to receive from defendants an allowance of £85,000-"On account of the above-mentioned £85,000 [defendants] hand over to [plaintiffs] in London . . . acceptances . . . for the sum of £70,000 payable in London. . . These acceptances, if so required by [defendants], [plaintiffs are] bound to renew by further three months acceptances for future periods up to one year from the date of acceptance of the original bills The remaining £15,000 are to be deducted at one shilling per sleeper at the payment of the last 300,000 . . ."- Plaintiffs to give defendants deposit acceptances for £75,000 as security for payment for the goods-Acceptances to be exchanged simultaneously - "Any dispute arising out of fulfilment of the contract for the year 1931 does not give the right to either side to discontinue the execution of the contract" -Failure of defendants to hand over acceptances on due date-Consequent refusal by plaintiffs to declare destinations and to take up and pay for shipping documents and goods tendered- Counterclaim by defendants for damages -Delivery of acceptances by defendants as condition precedent-Election by plaintiffs to treat contract as subsisting-Waiver