Henry Dean and Sons (Sydney) Limited v P O'Day Pty Ltd [1927] HCA 20

Henry Dean and Sons (Sydney) Limited v P O'Day Pty Ltd [1927] HCA 20

Where under a c.i.f. contract the seller ships goods not of the contractual description and tenders documents which do not identify the goods as those contracted for, the buyer's refusal to take up the documents does not evidence unreadiness or unwillingness to perform the contract; the buyer is entitled to damages for non-delivery, as shipping compliance is a condition precedent to payment. The verdict of the trial judge in favour of the buyer was restored.

Parties
Appellant; Plaintiff: Henry Dean & Sons (Sydney) Limited; Respondent; Defendant: P. O'Day Proprietary Limited
Jurisdiction
Australia
Judgment Date
06 May 1927
Procedural Posture
Civil Appeal / High Court of Australia: Appeal From Supreme Court of New South Wales (full Court)
Outcome
Appeal allowed.
Legal Topics
C.i.f. Contracts, Non Delivery, Readiness and Willingness to Perform, Refusal to Accept Documents, Invoice Description, Condition Precedent
Contract Law Sale of Goods C.i.f. Contracts Non Delivery Readiness and Willingness to Perform Refusal to Accept Documents Invoice Description Condition Precedent

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Henry Dean & Sons (Sydney) Limited

Appellant; Plaintiff

P. O'Day Proprietary Limited

Respondent; Defendant

Procedural Posture

Civil Appeal / High Court of Australia: Appeal From Supreme Court of New South Wales (full Court)

Legal Issues

  1. 1 Whether a purchaser under a c.i.f. contract who refused to accept shipping documents without further assurance was 'ready and willing' to perform the contract
  2. 2 Whether the tendered documents were proper within the meaning of the contract where the shipped goods were not contract goods
  3. 3 Whether the refusal to accept documents on suspicion goods were not as contracted bars the purchaser from damages for non-delivery

Ratio Decidendi

Where under a c.i.f. contract the seller ships goods not of the contractual description and tenders documents which do not identify the goods as those contracted for, the buyer's refusal to take up the documents does not evidence unreadiness or unwillingness to perform the contract; the buyer is entitled to damages for non-delivery, as shipping compliance is a condition precedent to payment. The verdict of the trial judge in favour of the buyer was restored.

Court Disposition

Appeal allowed.

Orders

  • Order of Supreme Court (Full Court) discharged.
  • Verdict of Gordon J. restored in favour of appellant.