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Manji Gangji Alidin v. Globe Mercantile Corporation Ltd., Civ. Case 18-D-65; 15/6/67; Duff, J.



Manji Gangji Alidin v. Globe Mercantile Corporation Ltd., Civ. Case 18-D-65; 15/6/67; Duff, J.

In March 1964 plaintiff contracted to supply defendant with 70/80 tons of sisal before December 1964. By September 1964, 25 tons had been delivered. Defendant failed to pay for the last two deliveries, cla
iming that it had the right to remove them to another place after delivery and to reject them after an inspection there. Plaintiff had four more tons of sisal prepared, but sold them to a third party at a loss after defendant had stated its intention to reject them by disputing their quality. The court found this sisal to have been of the required quality. Plaintiff also claimed damages for 21 tons of sisal which were due under the contract but which he had not produced at the time of defendant’s refusal of deliveries.

            Held: (1) With regard to the sisal which plaintiff had delivered, ownership passed at the time they were delivered to the first warehouse. Thereafter, defendant could not repudiate delivery, and its only remedy if the sisal was defective was to sell at the best possible price and sue for the loss suffered. (2) With regard to the sisal which was ready to be delivered, defendant in effect rejected delivery, and plaintiff is entitled to the difference between the contract price and the cost of production. (3) Plaintiff had the burden of proving that he would have been able to complete the contract had it not been broken by defendant. He failed to do so and cannot recover for any losses with respect to the sisal which had not been produced at the time of the breach.

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