Lord Maugham:-

Consequent upon the preliminary judgment of their Lordships, [See AIR 1937 PC 10] it now becomes necessary to decide upon the evidence properly called or put in before the trial Judge whether the respondents are entitled to judgment against the appellant for the sum of £7,816 or for some smaller sum as damages for breach of contract by the appellant of his agency agreement with the respondents dated 28th February, 1933. By the agreement, the appellant agreed to serve the respondents, a limited company registered in England, as their agent in Cape Coast Castle or elsewhere in the Gold Coast Colony or Ashanti as they might require as from 1st March 1930, until the employment should be terminated by three months' notice in writing. Among the usual clauses in such an agreement the most important for the present purpose are Cls. 2 and 3, which (so far as material) are in the following terms :

2. The agent shall keep proper books of account containing entries of all moneys received and paid and of all goods received or sold or delivered out by him on account of the company ....

3. The agent shall be responsible for all goods and moneys which shall be received at the factory o