Lord Wright.-

This is an appeal from a judgment of the Court of Appeal for Eastern Africa at Mombasa, reversing a decision in favour of the appellants of the High Court of Uganda, sitting at Kampala, Uganda. The Court of Appeal held that the respondents were entitled to recover damages in an action brought by them as plaintiffs against the appellants as defendants for breach of a contract to deliver steel rails. But the Court decided an issue as to the contract price in favour of the appellants. On that part of the decision the respondents have brought a cross-appeal. The appellants are a company incorporated in Holland, having a branch at Kampala, Uganda. The respondents own and operate a sugar factory in Uganda, on and for the purposes of which they operate about 72 miles of railway. The contract was in writing and was contained in the following document :

Kampala,

12th August 1939,

N. V. Twentsche Overzee Handel Mij.

Twentsche Overseas Trading Co. Ltd.

To: Messrs. Uganda Sugar Factory Ltd.,

Lugazi.

Dear Sir,

We beg to report as follows on your order as per your Indent No, 92/Tech.

Yours faithfully,

N. V. Twentsche Overzae Handal Maatschappi J.

(Twentsche Overseas Trading Co. Ltd).

No. 92/Teo