ANGLO-AFRICAN (ORAN) COALING COMPANY, LTD. v. GRIFFITHS, TATE & CO.

(1931) 40 Ll L Rep 233

KING'S BENCH DIVISION.

Before Mr. Justice Rowlatt.

Contract - Breach - Supply of coal by plaintiffs to shipowners - Drafts drawn by masters of ships supplied - Collection by defendants as plaintiffs' agents - "In the case that according to our [defendants'] request the drafts have been drawn at a period longer than that agreed for the payment to you [plaintiffs] of the supply, you will indorse drafts to us in the usual way but the payment to you will be made by us at the period between you and us. Should any bad debts question arise it is clearly understood that the risk of non-payment will be for suppliers' account if there is owners' bankruptcy before the date when the payment is due to you by us whilst it is for our account in other cases" - Construction - Meaning of "owners' bankruptcy" - Draft period extended at defendants' request - Liability of defendants - Counterclaim by defendants in respect of draft alleged to have been paid in ignorance of fact that bankruptcy had taken place