WESTRALIAN FARMERS, LTD. v. KING LINE, LTD.

(1932) 43 Ll L Rep 378

HOUSE OF LORDS.

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

Charter-party-Commission on freight- Rate of exchange-Freight payable in British sterling or its equivalent- "(34) Five per cent. commission upon the freight . . . is due and payable at the loading port [Fremantle, W. A.] by the shipowners to the charterers on the vessel being loaded . . . . (35) All sums due in Australia to the charterers shall be paid in Australian currency"- Construction-Charterers' contention that they were entitled in respect of commission on freight to a sum in Australian currency equivalent, at the rate of exchange between Great Britain and Australia on the date when such commission became due, to 5 per cent. of the sum in British sterling agreed to be paid in respect of freight-Held, that no question of rate of exchange was involved (the charter-party expressly provided for the payment or conversion of British sterling where the parties so intended); and that although freight was payable in sterling in London, the sum payable in respect of freight was only material under Clause 34 for the purpose of estimating the sum payable to the charterers as commission, which sum was payable in Australian currency- Shipowners' appeal allowed-Judgment of Rowlatt, J., restored.