Associated Newspapers Of Ceylon, Ltd. V. Hendrick

1935   Present  : Macdonell C.J. and Poyser J.

ASSOCIATED NEWSPAPERS OF CEYLON LTD. v. HENDRICK.

 314-D. C. Colombo, 46,067.

Liquidated damages-Contract for inserting advertisements-Agreement to pay higher rate if the space contracted for is not taken-Liquidated damages and not a. penalty.

The plaintiff company, who are newspaper proprietors, contracted with the defendant to insert advertisements on his account in their newspapers at a special rate, it being agreed that the defendant would insert not less than a stated number of column inches of advertising matter during the period of agreement.

It was also provided in the agreement that " when the space or number of insertions under the contract is less than originally agreed upon the higher rate for the lesser space must be paid " The defendant sent in advertisements during the period and paid for them at the special contract rate.

It was found at the end of the period, that the defendant had inserted much less than the space contracted for.

Held (in an action by the plaintiffs to recover the difference between the contract rate and the higher rate), th

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