Cohen and Co v Ockerby and Co Limited [1917] HCA 58

Cohen and Co v Ockerby and Co Limited [1917] HCA 58

On proper construction of contract, sellers were obliged only to deliver flour f.o.b. Fremantle to buyers’ ship, not to a bank. Buyers failed to provide a ship and failed to establish local credit suitable for altered delivery. Even if refusal to deliver to bank was unjustified, buyers did not demonstrate readiness and willingness to establish such credit, and are not entitled to sue for breach.

Parties
Appellant: Cohen & Co.; Respondent: Ockerby & Co. Ltd.
Jurisdiction
Australia
Judgment Date
02 November 1917
Procedural Posture
Contract / Appeal From Supreme Court of Western Australia to High Court
Outcome
appeal dismissed
Legal Topics
F.o.b. Contracts, Delivery Obligations, Letters of Credit, Condition Precedent, Breach of Contract, Damages
Contract Law Sale of Goods F.o.b. Contracts Delivery Obligations Letters of Credit Condition Precedent Breach of Contract Damages

Case Brief

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Parties

Cohen & Co.

Appellant

Ockerby & Co. Ltd.

Respondent

Procedural Posture

Contract / Appeal From Supreme Court of Western Australia to High Court

Legal Issues

  1. 1 Whether sellers were obligated to deliver flour other than f.o.b. Fremantle
  2. 2 Whether buyers established sufficient local credit for payment
  3. 3 Whether refusal to deliver to the bank amounted to breach

Ratio Decidendi

On proper construction of contract, sellers were obliged only to deliver flour f.o.b. Fremantle to buyers’ ship, not to a bank. Buyers failed to provide a ship and failed to establish local credit suitable for altered delivery. Even if refusal to deliver to bank was unjustified, buyers did not demonstrate readiness and willingness to establish such credit, and are not entitled to sue for breach.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs.