The Attorney General V. Abram Saibo & Co.,

[FULL BENCH.]

1915. Present  : Ennis, Shaw, and De Sampayo JJ.

THE ATTORNEY-GENERAL v. ABRAM SAIBO & CO.

369-D. C. Colombo, 35,575.

Contract for the tale of goods-Consideration-English law-Roman-Dutch law-Implied covenant-Penalty.

It was agreed, inter alia, between the General Manager of the Ceylon Government Railway and the defendant that defendant should supply rice for one year at a specified price " in such quantities as may from time to time be required for the general service of the railway "; that the deliveries should be made upon orders signed by the Railway Storekeeper; that the General Manager should pay for the rice supplied on the 15th day of the month following the delivery; that should the defendant fail to supply the rice ordered the General Manager should be at liberty to purchase elsewhere, and the defendant should pay a certain, penalty for such default, and also pay as damages the difference between the agreed price and the price at which the General Manage; bought the rice elsewhere. The defendant supplied rice for a few months and then made default. The Attorney-General sued defendant for dama

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