Mercantile Agency V. Ismail

Present: Ennis J. and Jayewardene A.J.

MERCANTILE AGENCY v. ISMAIL.

59-D. C. Colombo, 5,795.

Sale of goods-Breach of contract-Assessment of damages-Rate of exchange.

Where upon the breath of a contract the person in default becomes liable for the payment of a sum of money in foreign currency, the damages, for the purpose of the judgment, must be assessed as at the date of default, and the sum payable must be converted to local currency at the rate of exchange prevailing at that date.

The defendant committed a breach of his contract when the failed to pay the bill on maturity and take delivery of the goods, and not when the goods were sold at his risk.

THIS was an action arising out of a contract for the sale of goods. The defendant contracted to purchase from the plaintiffs 27 boxes of embroidery for the price of £212. 19s. 11d. with

interest at 8 per cent, per annum from April 20, 1920. Payment was to be made by bills drawn on the defendant1, who agreed to accept them on presentation and pay on maturity. The defendant failed to pay the bills on maturity and to take delivery of the goods. In terms of the contract plaintiffs so

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