CHAO AND OTHERS v. BRITISH TRADERS & SHIPPERS, LTD.

[1954] 1 Lloyd's Rep. 16

QUEEN'S BENCH DIVISION.

Before Mr. Justice Devlin.

Sale of goods (c.i.f.)-Documents-Forged bills of lading-Late shipment-Bill of lading date false-Payment against documents by buyers' bank-Sub-sale by buyers-Rejection by sub-buyers -Retention of goods by buyers after becoming aware that shipment was out of time - Claim by buyers against sellers for return of price paid; alternatively, for damages; also, for loss of profit on sub-sale- Sellers' agents privy to fraud-Liability of sellers as principals-Right of buyers to reject -Duty to elect within reasonable time- Successive rights of rejection under c.i.f. contract-Whether bill of lading a nullity by reason of forgery - Documents pledged to bank-Whether amounting to acceptance by buyers-Sale of Goods Act, 1893, Sect. 35.