Michelin Tyre Co., Ltd v. Macfarlane (Glasgow), Ltd, and Others [1916] ScotLR 1 (26 October 1916)

Michelin Tyre Co., Ltd v. Macfarlane (Glasgow), Ltd, and Others [1916] ScotLR 1 (26 October 1916)

On a proper construction of the agreements and the course of dealing, the relationship between Michelin Tyre Company and Macfarlane (Glasgow), Ltd was that of seller and buyer, not principal and agent. The goods were supplied at wholesale prices for resale at retail prices, with the defenders acting as merchants for...

Source-derived case information.

Citation
[1916] ScotLR 1
Parties
Pursuer: Michelin Tyre Company, Limited; Defender: Macfarlane (Glasgow), Limited (in liquidation); Defender (liquidator): J. J. D. Hourston, C. A.; Defender (liquidator): W. B. Galbraith, C. A.
Jurisdiction
Scotland
Judgment Date
26 October 1916
Procedural Posture
Civil / Appeal (court of Session, Inner House, First Division)
Outcome
appeal sustained; defenders assoilzied (absolved)
Legal Topics
Sale of Goods, Agency, Sale or Return, Del Credere Agency, Principal and Agent, Liquidation, Ownership of Goods, Merchant Dealing
Contract Law Commercial Law Sale of Goods Agency Sale or Return Del Credere Agency Principal and Agent Liquidation +2 more

Source-derived case record

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 4 Authorities cited 3 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Michelin Tyre Company, Limited

Pursuer

Macfarlane (Glasgow), Limited (in liquidation)

Defender

J. J. D. Hourston, C. A.

Defender (liquidator)

W. B. Galbraith, C. A.

Defender (liquidator)

Procedural Posture

Civil / Appeal (court of Session, Inner House, First Division)

Legal Issues

  1. 1 Whether the relationship between Michelin Tyre Company and Macfarlane (Glasgow), Ltd was that of principal and agent (including del credere agency) or buyer and seller; Whether the sums due from Macfarlane's customers for goods supplied by Michelin belonged to Michelin or to Macfarlane's liquidators on liquidation

Ratio Decidendi

On a proper construction of the agreements and the course of dealing, the relationship between Michelin Tyre Company and Macfarlane (Glasgow), Ltd was that of seller and buyer, not principal and agent. The goods were supplied at wholesale prices for resale at retail prices, with the defenders acting as merchants for their own profit. The retention of title and other restrictions did not alter the substance of the relationship. Accordingly, the sums due from Macfarlane's customers for goods sold but not yet paid for at the date of liquidation belonged to Macfarlane's estate and not to Michelin.

Court Disposition

appeal sustained; defenders assoilzied (absolved)

Orders

  • Defenders assoilzied (absolved) from the conclusions of the action.
  • Pursuers not entitled to declarator or accounting as craved.