HILLAS & CO., LTD. v. ARCOS, LTD.

(1932) 43 Ll L Rep 359

HOUSE OF LORDS.

Before Lord Tomlin, Lord Warrington of Clyffe, Lord Thankerton, Lord Macmillan and Lord Wright.

Sale of goods - Breach - Agreement by plaintiffs to purchase from defendants "softwood goods of fair specification over the season 1930" - "Buyers shall also have the option of entering into a contract with sellers for the purchase of 100,000 standards for delivery during 1931. Such contract to stipulate that whatever the conditions are, buyers shall obtain the goods on conditions and at prices which shout to them a reduction of 5 per cent. on the f.o.b. value of the official price list at any time ruling during 1931"-Option exercised - Failure of defendants to implement contract - Construction - Enforceability-Whether amounting to an agreement complete in itself or to an agreement that at a future date an agreement would be completed - Measure of damages - Held, that the option having been exercised, such agreement was complete and binding in itself and was not dependent on any future agreement for its validity; as to damages, that the defendants having withheld material from which the learned Judge might more accurately assess the damages, the defendants could not complain of his Lordship's assessment upon such material as he had before him - Appeal allowed - Judgment of MacKinnon, J., restored.