The appellants (The Malabar Products & Co.) and the respondent Krishna Iyer are merchants in Mattancherry, a town situated in the vicinity of the Cochin Harbour. The respondent is permanently residing at Trichur, a town 50 miles away, but has a local agent, Achutha Bhat.

The offices of the parties are located within a furlong of each other with facility for easy and immediate communication. There is an Oil Merchants’ Association at the place but both parties not having been its members at the relevant time, the rules of that body do not fall to be applied.

2. On the 28th June 1946, at about 4 p.m. the plaintiff agreed to sell and the defendants agreed to purchase 25 candies of ‘clean’ cocoanut oil at Rs. 560/- per candy. The transaction was put through by broker Viswam. There is no document to evidence the terms of the contract.

3. The plaintiff is not a stockist nor has he a godown. Adam Hajee Peer Mohammed Issac and Oosman Abdul Rahiman were under contracts to supply oil to him wherefrom the above 25 candies could be delivered. On 29th June 1946 the appellants wrote to the respondent as under:-

“Dear Sir,

With reference to your sale to us thro’ Broker Viswam, 25 candies read