Western Grocer Co. v. New York Oversea Co.

This is an action for breach of contract by the buyer against the seller of certain sugar. The contract was entered into in May, 1920. The material terms are as follows:

Other provisions of the contract place the risk of loss upon the seller, prior to delivery at San Francisco. On May 8, 1920, the buyer procured the required letter of credit in the sum of $425,000 from the Com Exchange National Bank of Chicago, III., and on May 25, 1920, this letter of credit was amended in a particular immaterial here, at the request of the seller.

Prior to the time of entering into this contract the seller, the New York Oversea Company, had contracted to buy 2,000 tons of sugar in Java. This sugar was duly shipped from Java, part of it-having been delivered for shipment at the port of Sama- *519 rang July 8, 1920, and part at Soera-baya July 17, 1920. The 2,000 tons of sugar arrived at San Francisco August 26, 1920, where it was inspected and accepted as to quality on behalf of the buyers September 2, 1920. On that date, September 2, 1920, the sellers informed the buyers that they intended to make delivery of 880 tons of sugar under the contract. In view of the fact that the sugar market had…