TRANS TRUST S.P.R.L. v. DANUBIAN TRADING COMPANY, LTD.

[1951] 2 Lloyd's Rep. 644

KING'S BENCH DIVISION.

Before Mr. Justice McNair.

Contract-Breach by buyers-Measure of damages-Chain contracts-Failure by buyers to procure letter of credit in favour of sellers' suppliers-Liability of sellers to suppliers-Sellers' right of recovery from buyers-Impecuniosity of sellers-Contemplation of parties- Chain contracts for sale of steel-Firm contract entered into between manufacturers and F. (first buyers) providing for payment against irrevocable confirmed letter of credit to be put up at same time-Resale by F. to A.-Negotiations entered into between A. and plaintiffs - Offer made by plaintiffs to defendants - Negotiations entered into between defendants and L. (American corporation), L. to put up letter of credit in favour of A.-Plaintiffs informed by defendants that they had received firm acceptance from L. - Firm order placed by plaintiffs with A. -Failure by L. to provide letter of credit in favour of A., sale by plaintiffs to defendants accordingly falling through-Claim by plaintiffs to recover from defendants loss of profit on resale and to be indemnified against their (plaintiffs') liability to A. - Rising market-Measure of damages recoverable-Defence: that contract between plaintiffs and defendants was conditional upon L. providing letter of credit; further, that plaintiffs' loss was solely due to their financial position and was too remote to recover as a head of damage.