Abdur Rahman, J.

1. This appeal arises out of a suit for refund of Rs. 8,700 stated to have been advanced by the 3rd defendant as an agent of the plaintiff to the 1st defendant at the time of the execution of the agreement (Ex. J) on the 9th November, 1936. Under the terms of this agreement, the 1st defendant. who held a general power of attorney, dated the 24th March, 1936 from the 2nd defendant, agreed to sell to the 3rd defendant as an agent of the plaintiff 30 tons of sandalwood that may be got ready by the former out of the two estates (Benhope and Killiard), belonging to his principal in a period of one year at Rs. 800 per ton and any further quantity of wood that may be available out of the aforesaid estates at Rs. 780 per ton. The sum. of Rs. 7,800 was acknowledged to have been received by way of an advance in Ex. J and was agreed to be adjusted at the time when the goods were delivered to the 3rd defendant on behalf of the plaintiff at the rate of Rs. 100 per ton. The agreement also provided for a liquidated damage at Rs. 150 per ton if either of the parties failed to deliver or take the goods mentioned in the agreement. On the same date another varthamanam letter (