IF SHIPMENTS ARE NOT TENDERED IN TIME THE BUYER NEED NOT TAKE THEM.
Question.—In December, 1909, we placed an order for nine cars of lumber to be delivered in March, 1910. Part of the shipment was made in February and March, leaving about a third unshipped on the first of April. We wrote the sellers to cancel the order. They object to this cancellation, saying that the delay was caused by a breakdown of their mill which was unavoidable and say for this reason the order is in force, as they are ready to make delivery of the balance of the goods to-day, April 7th, one week after the contract date expired. Have we a legal right to cancel under these conditions?
Reply: The man who runs a mill is entitled to all the profit he can make from it; but if there is an interruption of the running it is he who must stand the loss. He cannot ask a customer to wait for goods, at his own expense and inconvenience, until it may be found practicable and advisable to start up the works again. The buyers may refuse to accept the belated delivery, in the case our correspondent puts, and may demand damages for the sellers’ breach of contract. If a breakdown of the mill is to excuse the seller the contract of the sale must contain an explicit stipulation to that effect.
Opinion No. 84.