Swiss Knits Ltd v Cavalier Ltd

• Jurisdiction: Barbados
• Judge: Rocheford, J.
• Judgment Date: 12 September 1980
• Neutral Citation: BB 1980 HC 35
• Docket Number: No. 131 of 1979
• Court: High Court (Barbados)
• Date: 12 September 1980

High Court

Rocheford, J. (Acting)

No. 131 of 1979

Swiss Knits Ltd

and

Cavalier Ltd.

C.E. Lashley for plaintiff.

P. Greaves for defendant.

Contract - Sale of Goods — The plaintiff company carried on the business of manufacturing fabrics for use in the making of garments in Canada and the defendant company carried on the business of manufacturing clothing from fabrics in Barbados — The defendant company ordered a supply of goods in January 1977, some of these goods were defective — A subsequent order was made in October 1977 and again defective goods were sent — The parties negotiated a settlement by which the defendant company agreed to pay a reduced price — The defendant paid part of the price and refused to pay the balance — The plaintiff company sued for the balance — The defendant company claimed a rebate or a set off — The issue between the parties concerned the terms of the settlement arrived at in July 1977 and October 1977 — Finding that the settlement arrived at in July 1977 included settlement of compensation for the defects in the goods ordered in 1977 and therefore all matters pertaining to the order of January 1977 had been settled in July 1977 — Judgment given for the plaintiffs in the sum of the amount due.

Rocheford, J.

1 The plaintiff Company carries on the business of manufacturing fabrics for use in the making of garments. Its offices and factory are situated in Montreal, Canada. The defendant company carries on the business of manufacturing clothing from fabrics and does its business at Grazettes Industrial Park in Barbados. The defendant company has, for a number of years, purchased knit fabrics from the plaintiff company.

2 In the month of January, 1977, the defendant company made a certain order for goods to be supplied by the plaintiff company. The method of payment was by irrevocable letter of credit, that is, an undertaking by the defendant company's bank to pay the amount entered in the invoices to the plaintiff company's bank. The purchase price of these goods was the sum of $37,677.08 and these moneys were received by the plaintiff company and the goods were received by the defendant company.

3 During the month of July 1977, the Managing Director of the defendant company visited the offices of the plaintiff company in Montreal, Canada. This visit was in respect of defective goods that had been supplied by the plaintiff company to the defendant company during the years 1976 and 1977. There were negotiations, and a settlement was reached by virtue of which the plaintiff company issued credit notes and cheques in the amount of $17,000.00 Can. to the defendant company.

4 In October 1977 the defendant company made an order for goods to be supplied by the plaintiff company. There was the usual method of payment, by letter of credit. The details of the order were entered on two invoices dated the 13 October 1977 and the 20 October, 1977. The total purchase price is shown on these invoices as $19,600.00 Can. These goods were received by the defendant company. However, the plaintiff company failed to present the relevant documents to the bank within the stipulated time, and therefore did not collect the purchase moneys. On the 18 ^th November, 1977 the defendant company informed the plaintiff company, by letter signed by its Managing Director, that the goods were defective and no payment was made to the plaintiff company. The duty free conditions under which the goods were allowed into Barbados did not permit their return to Canada. There were negotiations between the parties and in...