Lord Dunedin :-

The plaintiffs (respondents) are merchants in Rangoon who deal in produce and have occasion to purchase sugar, which they were in the habit of getting from the defendants (appellants) who are also merchants in Rangoon. The appellants did not themselves grow sugar, but got sugar from a firm of Joakim and Company, in Sourabaya. Joakim and Company had offered a consignment to the appellants and the appellants had approached the respondents as to whether they would take sugar at the price quoted. After consultation, the appellants, with the approval of the respondents, sent a telegram to Joakim and Company on the 22nd May, 1914. The telegram was in cipher but de-coded read as follows :-

"3 27 91 65 49 6.

"3-Cannot accept your after but counter offer subject to reply within 24 hours.

"27-100 tons sup. white T.M.O., G. W., and/or similar

"91-July/December, in equal monthly quantities.

"65-11/8 per cwt. c.i.f.

"49-Option Rangoon/Calcutta.

"6-Check."

This telegram having been despatched, the respondents on the 23rd May handed to the appellants a document in the following terms :-

"Buyers, Messrs. E. M. Abowath and Company.

"I/We hereby make the following firm offer to Messrs. Balthaza