Lord Wright:-

The appellants were charterers of a steam trawler the St. Cuthbert which was the property of the respondents. The charter party, dated 25th October 1928, had originally been entered into between the respondents and the National Fish Company, Ltd., but was later by agreement taken over by the appellants. It was for 12 calendar months, but was to continue from year to year unless, terminated by 3 months' notice from either party, the notice to take effect at the end of one of the years. It was expressly agreed that the trawler should be employed in the fishing industry only; the amount of monthly hire was to be fixed on a basis to include a percentage of the purchase price, and also operating expenses. There was an option given to the charterers to purchase the trawler.

By letters dated 6th and 8th July 1932, exchanged between the appellants and respondents, it was agreed that the charter party as then existing should be renewed for one year from 25th October 1932, but at a rate of monthly hire which was 25 per cent. lower than that previously paid: the amount so agreed came to $590.97 per month. It was also then agreed that in the event of the appellants giving notice on