SANDAY & CO., LTD. v. MAATSCHAPPIJ VOOR INDUSTRIEELE EN FINANCIEELE ONDERNEMINGEN N.V.

(1939) 65 Ll L Rep 148

COURT OF APPEAL.

Before Lord Justice Scott, Lord Justice Clauson and Lord Justice Goddard.

Principal and agent - Agreement by English agents to sell commodities for future delivery on behalf of Dutch principals-Certain margins of credit allowed by agents upon orders sent to them by Dutch principals for execution -Negotiations between parties as to increased margin credits-Sales in the meantime effected by agents on principals' behalf - Whether sale contracts affirmed by principals subject to condition precedent that margin credits should be extended-Failure by principals to make payment of margin call on certain day-Principals closed out at end of business hours on that day-Dispute as to period during which the principals were entitled to make payment of differences due - Whether period extended-Estoppel - Arbitration - Award that sale contracts were not made subject to the condition of an extension of credit and were binding on the Dutch principals, and that the agents were entitled to close the contracts-Case stated.