A, a dealer in Canada, agreed by contract in writing to supply the Glasgow Tramway Company with 2100 tons of hay. The hay was described in the contract as ‘best Canadian Timothy hay,’ subject to the qualification that ‘small quantities of clover mixed in hay not to be objected to.’
To carry out part of this contract A contracted with B, also a dealer in Canada, for the supply of 900 tons of hay. In terms of this latter contract, which was in writing, the hay was to be delivered in Glasgow, and was described as ‘good sound Canadian hay,’ with the addition of this explanation, ‘good sound Canadian hay is understood to mean No. 1 export hay of fair average quality.’
In an action between A and B arising out of the rejection of part of the hay tendered as disconform to contract, it was held to be proved (1) that B knew that the hay contracted for was required by A in order to carry out his contract with the Glasgow Tramway Company, (2) that ‘No. 1 export hay’ in the Glasgow Market meant hay not in any case containing more than 20 per cent. of clover, all the rest being pure ‘Timothy’ hay (i.e., hay not containing clover or natural grasses); and (3) that the hay tendered and rejected was not of this quality.
Held (reversing the judgment of the Second Division) that it was an implied condition of the contract between A and B that the ‘No. 1 export hay’ to be supplied should be of the standard required to answer that description in the Glasgow market, and that the hay tendered not being of that standard, A was entitled to reject it as not conform to contract.
Judges:
Lord Chancellor (Halsbury) and Lords Watson, Shand, and Davey
Citations:
[1899] UKHL 611, 36 SLR 611
Links:
Jurisdiction:
Scotland
Contract
Updated: 30 November 2022; Ref: scu.631833