COMMERCIAL SUPPLEMENT

Abstract

Manufacturers of radio sets agreed to sell a certain quantity to buyers in Persia. They made a contract with carriers for the radios to be carried to London docks. A large number of the radios were loaded into a van belonging to a sub‐contractor of the carriers at the manufacturer's premises. The van was then parked in a near‐by street, out of sight and unattended. It had been locked but not immobilised. While the driver was assisting in loading another van the van containing the radios was stolen and only a small number of the radios was subsequently recovered. The manufacturers sued the carriers for their loss alleging negligence. There was evidence that the manufacturers and the buyers had agreed to insert a fake low price in the invoices in order to defraud the Persian Customs. The carriers denied negligence and alleged in any event the manufacturers could only recover the price shown in the invoices since there was no evidence as to the exact number of sets loaded into the van. Held: (i) that the carriers had been negligent by not immobilising the van when it was left; (ii) that the measure of damages was prima facie the value of the goods at the time of their loss and the contract between the manufacturers and the buyers was irrelevant.

Citation

(1966), "COMMERCIAL SUPPLEMENT", Managerial Law, Vol. 1 No. 1, pp. 295-302. https://doi.org/10.1108/eb059572