Bowden Brothers and Company Limited v Little [1907] HCA 14

Bowden Brothers and Company Limited v Little [1907] HCA 14

Under a c.i.f. contract, absent an express agreement or proven reliance on the vendor's skill or judgment, the vendor's obligation is fulfilled by shipping goods of the contracted description and condition at the port of shipment, insuring them, and providing appropriate documents. There is no implied absolute warranty that the goods will arrive in merchantable condition unless such reliance is established. Thus, as pled, the respondent could not succeed, and a nonsuit was ordered, with a new trial in the cross-action.

Parties
Appellant/plaintiff: Bowden Brothers and Company Limited; Respondent/defendant: Robert Little trading as Robert Little and Company
Jurisdiction
Australia
Judgment Date
15 May 1907
Procedural Posture
Appeal From Supreme Court of New South Wales / High Court Judgment on Appeal
Outcome
Appeal allowed; respondent's action nonsuited; new trial in appellants' action.
Legal Topics
Sale of Goods, C.i.f. Contracts, Vendor and Purchaser, Implied Warranty, Risk in Transit
Commercial Law Sale of Goods C.i.f. Contracts Vendor and Purchaser Implied Warranty Risk in Transit

Case Brief

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Parties

Bowden Brothers and Company Limited

Appellant/plaintiff

Robert Little trading as Robert Little and Company

Respondent/defendant

Procedural Posture

Appeal From Supreme Court of New South Wales / High Court Judgment on Appeal

Legal Issues

  1. 1 Whether under a c.i.f. contract the vendor is required to deliver goods in merchantable condition at the port of destination or if shipment at port suffices;
  2. 2 Whether there was an implied warranty that the goods would be fit to arrive in merchantable condition, except for necessary deterioration;
  3. 3 Whether the purchaser relied upon the vendor's skill or judgment to supply goods fit for the particular overseas voyage;

Ratio Decidendi

Under a c.i.f. contract, absent an express agreement or proven reliance on the vendor's skill or judgment, the vendor's obligation is fulfilled by shipping goods of the contracted description and condition at the port of shipment, insuring them, and providing appropriate documents. There is no implied absolute warranty that the goods will arrive in merchantable condition unless such reliance is established. Thus, as pled, the respondent could not succeed, and a nonsuit was ordered, with a new trial in the cross-action.

Court Disposition

Appeal allowed; respondent's action nonsuited; new trial in appellants' action.

Orders

  • Order appealed from discharged.
  • Verdict in respondent's action set aside and nonsuit entered with costs, including costs of the motion for a rule nisi in the Supreme Court.