1922-09-05 — Page 3

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BRUNSWICK NEWS

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THE HONGKONG TELEGRAPH.

SALE OF A LAUNCH.

The Law on Auctions.

TUESDAY, SEPTEMBER 5; 1992.

an

amount of the reserve; every offer esild still svade constractòal obli- and acceptance during the auctiongation. Any infomalities in the! had been conditional en that re-contract lost to the plaintiff which serve price being reached; and would render it unenforceable by that this condition operated slike action at law may be utilised by In the Summary Court yester-in the acceptance of the final bid the defendants in dimination or in day afteranos, Mr. Justice Woodfas in the acknowledgment as in annihilation of damages".

The plaintin

Substantial Damages. gave his decision in the recent preliminary bide.

had acquired na contractual action in which a merchant na

The defendants bad relied on a

in Vice-Chancellor! ad Kwok Labting sued Messrs. rights and he had also been sub-

ject to no misrepresentation. He paragraph Hughes and Hough, auctioneers, in connection with the disposal of hath therefore, no cause of action. Hall's judgment in Warr v. The Puisne Judge called atten-Jones" 1876, 21 WR, 695) as the War Department vessel

Taken at its. Hercules Plainti alleged that on eriticisms by learned a statement of law applicable to

statement was the ship was knocked down to judges of the decision in the case the present case.

of Rainbow v. Hoskins already highest this him for the sum of $10,000.

Lord Justice Fletcher authority for the following pro was stated during the hearing that cited. the reserve price was £0.500. The Moulton said: "A principal whojposition: that where a contract handed over tolives authority to the auctioneer had been made, which we con the ship was n.t

party, owing to plaint and he claimal damages, to sell, subject to a reserve price, tracting

action that party Mr. C. G. Alabaster, with him kives no power to the auctioneer, statutory defence, was unable to Mr. Eldon Potter, instructed by either expressly or impliedly. enforce by Mr. G. G. N. Tinson of Messrs. accept a less price. The case of might not, in respect to that con- Rainbow v. Hawkins, so far as it tract, obtain damages other than Johnson, Stokes and Master, ap-

this view,nominal darcages from the person peared for the plantiff, and Mr.is inconsistent with F. C. Jenkin, instructed by Mr. cannot be regarded as in harmony through whose misrepresentation C. E. H. Beavis, of Mesars, Wilkin-with well-established principles. Į of authority he had been induced son and Grist, for the defendants admitted in this ease that the to enter into the contract. This är In delivering judgment the price offered by the plaintif was proposition at law, in his opinion, lower than the reserve price. The lid not carry the defendants far Pulsne Judge said;

This case mises the question auctioneer could not effectively enough to defeat the plainti

because he claim to substantial damages. In whether, at a sale of 舀 chatte sccept such a bid. which is of the value of $100 or uld not make a contract so as order to show that the proper

accept damages were nominal the upwards by paolie auction, an. to bind the principal to

less than the reserve price." 1: fendants must begir nounced to be without reserve, the would thus be ser remarked the Pent that the plaintiff had been highest bidder to whom the chattel

Polne Judge, that the Court of warranted a contract and, owing i knocked down has A legal

to a fullure of the warranty, he Appeal was ready * consider remedy again-the auctioneer

the defendants who has accepted his bid without further the propositiu. kali & wa hud received no contract at all. to contend the authority of his principal, the in Rainbow v. HA. The dir-lt his opin.on

view might not be heard vendor. The plaint attended and culty of deciding which

wasthat the hypothetical contract n

t which respect

the plaintif auction conducted by the defend. the law should prevail

felt by a lourde. A tuen!

was pelle in the "N

tre Journal alleged that he had suffered de-) The up rule without reserve.

triment might have been an in- 442 zad 262:

· 1947, VOL. 3.

The plaintif name of the vendors was not dis-

who was formal contract. surtly after buring obtained no contract, mast the judge compensated in respect of the best contract in the contemplat.on fund. If the parties. The Puisne Judge'

rinsed The paintit offered "Sales by Av

the

the highest!

writing at th

Midden Pefendants knocked promulgation down the lausen to him at that price. In fact,

defendant Phad been authorised by their prin

cipals nly to sell subject

7-2 higher! reserve proze which

After than $10, NOA, £3.50E

the fall the hammer the wave tioneer Industry realised that hy hd m

i

mistake. Before

Writer

ment in MeMar 1: might be due

d.dent revised edit, an Har 02 Austmaste Since the

that

....

publishe 19.

HI

Halsbury's interpretation. The turned edu

leww not the rear of the austur. "Laws of Enaun the explained the mistake to the deve plaints; no relied to make ang, de isl

writing to renver; igne, mund

ale enforceable, but enunciated the contract against the rindor. die did not level position tant (op-the-lasmeh syain-for-Palec - dos tommom in fa tion. The plantit here cimens: "Wh.rs & adamages, ainst the defendants) by a rend. r.

for a beach. of warranty of an authority to sell thenty to sell with at reserve, even though

Involved Law.

Con alo

of tox

wis.

de-

from the

zu i cases establishing this

vies. The plaintiff here must bel

mpensated in damages for the

* of his margin, and le calcu-j lat ne the impensation all thei incidents at his expected bargain) - would be presumed in his favour! On Autour of the party when und to have been in the

Min maps opinion." the Pulsuedulge

The printi awarded substantial damages

this Butier for the loss:

Det 1 skali pesekk heen Gse these damages in the principle! no Implied applied in & darin v. Francis (1870)

reserve £. f. 5. C. P. 2951. The plaintiff.

the best bidder, bid $10,000|| the town! launch. The re

price placed upon the launchi *was eit,509, riaghly equivalent at that time, to 300.000, Jir. Tully. Launch Inspector to the Asiatic) Petroleum Co, Ltd, had examined the launch a few days before the action and had valued it for his On the mop: vers at $25,000. Howkins Un later f the auction, after the sale. the defendants themselves, re-

The law relating to dates withe of bus instru nut resume by publie auction is.

In the reserve price tell met involved in some obscur by. Warlow Harrisin 1858, at the purchaser ang right to end 1850, 1 E. & E. p295, the sale was stated to be without reserve. The vendor himself bid at the buck

To the paragraph wa- addejs following foetate: "M÷M&ORS

HH is no sixtpenne gulares the his own (Fortes que sapere my on this

1property, which was knocked down Pins Bankow v

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Esan seked 1834.

SUNDRY HARDWARE

119. Jerebin SweRT

FRENCH LESSONS. C. MOUSSION, 15. Morrison-Hill Road,

the tuner. binti was the

the

cautiously. dopted. More

to aim at that agare by the dual this new of the law perpleuning

in the prevent sitiom had been, reived and declined an offer off Tow defendant.

arguner to $20,000 for the launch. Within bicheed drawn. Two corefe next

„deras gi by cesneel on both sides! two months of the date of the indader, having bd sixty pinay bad assumed that it was to Falaustion the owners sold the launchi

He calmed that the vendor's buil

the for $18,500, Between the date of was accepted contrary terms of the auction and that the clitors of the 'Englen and En-the auction and the date on which by Digest! Val. 1. 1919 p.; the launch was sold, the dollar' making of the bid was in itself a

He and had noted Huit how v. H.wk.ns as exchange had fisen by more than f those terms. branch

'disappe veer 24. It sems to me, therefore, Imitted that he, bimself, a-

highest bona fl bidder, snid) as in McManus . Fortes-jle. Althut $20.000 represents the market have been reengaleed by the declaumwe-tion and pissible that the value of the launch on the datei fendunt as the purchu-er. The

xen.ral use of the reserve of the auctions and that the pro- Exchequer Chamber hold that the price is modern times may have! Per measure of damages is the plaintiff's declaration had been, led to a shifting at eninions from difference between that sum and Rainbow the sum bid by the plaintiff, name- Jurongly framed, but that he weald, the view mken in

Judgment for the with costs; damages

be entitled to judgment en anywkins towards that recognises le 310.000. amended declaration. It decided as predemble, more in harmony plaintif that the form of sale to the vendor with well-established principles | $10,000. was not a sale in fact and that, jin. Mo-Manus v. Fortesque." therefore, there had been no sale:!

Claim Partly Admitted.

further that the defendant ha "In what follows contined the

warranted that there should be a

to

an

Question of Costa.

Mr. Hidon Potter: Would your} Lordship certify for two counsel? It is clearly a case of importance.

Mr. F. C. Jenkin: I apply for] ja short stay.

Mr. Eldon Petter: I agree to a fortnight.

ale to the highest bona fide bid. Prisne Judze, 1 adapt the view of ler, and that he was answerable law river in Halsbar. The substantial damages the problem here is to apply the law stated to circumstances anala- Clampinis for a breach of thal

1: al: held that this. It appears that three cases.

fous to those in Rainbow. How

Mr. Jenkin: The law on the Stute of Frauds afforded to the wariow. Harron, Rainbow T.

subject is obscure and my clients! Merendust no defence to an Action Howkins and the

nay desire to take the view of present cake brought in respect of this breach

the Appeal Court. I am further huve this feet in comm. that of warranty.

the plaintify was the highest bona instructed to oppose the certificate The Pulene Judge also qurted)

for two counsel. The case did not auction 472- from the decision of the Divisional bidder at

involve the necessity for taking! avunced to be without reserve. !Court A Rainbow V Howkins

R. 1044,2 K. B. 322, and 1994.rom the defendants

and though he was 30, received any evidence except Mr. Tully's. The argument was confined to 7 LJ. K. B. 6) that whate tioneers) no contract of sale by sumciently well handled by one points of law and could have been instructions had been received; which the vendor was bound. In counsel on either side. from the vendor by the auctioneerach case, therefore, the plaintiff the auctioneer W23 息 generall zzent for sale and had, on the legal remedy in damages teen days was granted, and the for a breach of warranty of a Paisne Judge Intimated that he fall of the hammer, effected 1 contract which was binding on the thority to sell without reserve. would deal with the application as |

So far the plaintiff's claim has to counsel in Chambers. been here admitted in the state- ment of defence.

vendors,

A Contract of Sale,

the auc-

Continuing, the Puisne Judge The dispute arising between

A stay of execution for four-

said that the decision in Rainbow the present parties relates to the SWORD FOR IMPERIAL JAPANESE

Howkins rested upon the pro-amount of damages which the

BRIDE. position that, on the fall of the plaintiff is entitled to claim. For

An Imperial order has been auctioneer's hammer the vendor the present defendants it has been given to the swordsmith Owat- was bound by a contract of sale argued that the damages attribut-puzan in Kioto to make a abort subject to conditions announced) able to their breach of warranty sword for presentation to H.L.A. whether the auctioneer had or had for which alone they may be held Princess Nagako, by the Prince act followed his instructions. responsible, are merely nominal. Regent. This proposition was considered In limitation of their liability in by the Court of Appeal in Mcdamages they rely in argument Manus Fortesque (L R. 1907 upon the operation of Section 4 2 K. B. 1). In that case it was of the Sale of Goods Ordinance, held that, as at the auction, both by which, even if bound by con parties knew of the existence ct track in accordance with the au a reserve price, though not of the thority warranted, the vendors

THE VICTORLA is superior.

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