IN RE ANCHOR LINE (HENDERSON BROTHERS), LTD. (APPLICATION BY OCEAN STEAMSHIP COMPANY, LTD.)

(1936) 55 Ll.L.Rep. 251

COURT OF APPEAL.

Before Lord Wright (Master of the Rolls), Lord Justice Romer and Lord Justice Greene.

Sale of goods-Passing of property-Sale of crane by Ocean Steamship Co. to Anchor Line-Terms of contract: "Referring to the conversations which Mr. S. H. Ellis had with Mr. A. C. F. Henderson yesterday, we have pleasure in confirming the arrangement then come to with regard to the 30-ton electric crane at Yorkhill Basin. (1) We agree that you take over the crane . . . for a deferred purchase price of £4000. (2) Until the completion of the purchase you agree to pay us for interest and depreciation at the rates of £350 per annum for the first two years after taking over, £450 per annum for the second two years and £400 per annum thereafter. (3) Of these sums a proportion amounting to £240 per annum, or 6 per cent. of the purchase price of the crane, is to be regarded as depreciation, and the total of these annual payments for depreciation is to be deducted from the above-mentioned amount of £4000 in order to arrive at the balance actually to be paid by you on completion of the purchase whenever that may take place. In the meantime you will have entire charge of and responsibility for the crane in every respect. We suggest that the payments be made quarterly, and that the date for your taking over the crane be fixed as from Sept. 5, 1931"- Anchor Line in liquidation-Sale by liquidator as going concern-Crane included in sale-Claim by Ocean Steamship Co. for declaration that property in crane did not pass to Anchor Line until whole of purchase price paid, and that the liquidator in the circumstances must fie deemed to have adopted the agreement, and therefore that the claimants were entitled to be paid the balance due under the agreement-"Depreciation" -"Interest"-Sale of Goods Act, 1893, Sects. 17, 18.