COMPTOIR D'ACHAT ET DE VENTE DU BOERENBOND BELGE, S.A. v. LUIS DE RIDDER, LIMITADA.

(1946) 80 Ll.L.Rep. 140

KING'S BENCH DIVISION.

Before Mr. Justice Morris.

Sale of goods - C.i.f. contract - Documents - Payment by buyers against delivery order - Ship diverted by sellers to neutral port owing to enemy occupation of contract destination - Right of buyers to repayment of price paid - Failure of consideration - Sale of 500 tons of rye (part of bulk cargo) "at the price of 4.025 dols. per 100 kilos c.i.f. Antwerp on the terms, conditions and rules contained in Form No. 41 of the London Corn Trade Association" - Further provision that "Payment to be made by net cash on first presentation of and in exchange for first arriving copy/ies of bills of lading . . . and/or delivery orders and policy/ies and/or certificate/s and/or letter/s of insurance at Antwerp . . ." - Bulk cargo shipped by sellers in chartered ship Julia - Delivery order presented in Antwerp to Belgian buyers (claimants) - Delivery order signed by sellers' agents and addressed to sellers' cargo superintendents instructing them to release to claimants 500 tons rye ex bill of lading for 1120 tons shipped in Julia - Notification in delivery order that holder was entitled to share in certificate of insurance covering bulk cargo - Certificate retained by sellers' agents - Payment made by claimants against delivery order - Invasion of Belgium by German armed forces - Julia diverted to Lisbon arrangement between shipowners and sellers (as charterers) - Cargo discharged and sold by sellers ex ship - Proceeds offered to claimants - Contention by claimants that they were entitled to repayment of sum paid against delivery order - Alleged failure of consideration - Construction of contract - Evidence of course of business followed in previous transactions between parties - Passing of risk - Frustration - Arbitration - Award rejecting buyers' claim - Case stated.