Defendants, merchants in London, received orders from G. at St. Petersburgh for a quantity of Havannah sugars : that order was revoked, and another given for Brazil sugars, for the amount of which Defendants were to draw on Plaintiff, G.’s agent at Hamburgh, by a bill at three months : Plaintiff accepted the bill ; wrote to G for instructions because Defendants had been accredited for Havannah sugars and not Brazil ; and then to Defendants to say that he had accepted the bill under their guaranty for the present, as he had not received the accreditive : G. then wrote to Plaintiff, giving him credit for the Brazil sugar, and requesting him to release Defendants from their guaranty : G. failed before the acceptance became due : Held, that Plaintiff was liable to Defendants on this acceptance, notwithstanding Defendants, after G.’s failure, wrote to Plaintiff,–‘ We have received from G. the assurance that he has arranged with you the needful for the protection of the draft: we reserve to ourselves any advantage from the insurance of the goods ; if you have written to G. that you have not honored the draft, we cannot consider your acceptance as valid in any other way than on account of G.’
Citations:
[1840] EngR 357, (1840) 6 Bing NC 253, (1840) 133 ER 100
Links:
Jurisdiction:
England and Wales
Contract
Updated: 18 May 2022; Ref: scu.309783
