PANI BAI Vs. SIRE KANWAR

JUDGEMENT

(1.) IN this appeal a short but interesting question of law arises as to what should be the measure of damages when an agent sells goods of the principal below the limit placed upon such goods by the principal and without being able to justify the sale in terms of the contract or otherwise ?

(2.) THE circumstances in which the aforesaid question arises may be briefly narrated.

(3.) IN Manchubhai Navalchand vs. John H. Tod (1), a Similar question arose before their Lordships of the Bombay High Court, where the principal had placed a specified limit in respect of the price of a parcel of pearls sent for sale to London, but the same was sold by the London firm at a much lesser price. The limit which was placed by the principal on the parcel of pearls was -550, while the same was sold by the agents, the London firm, for - 270. It was held by the Bombay High Court in the aforesaid case that the measure of damages in a case where an agent had, in breach of his duty, sold the goods of his principal below the limit placed upon them the by principal, is the loss which the principal had sustained and if he had sustained no loss then the principal could ask only for nominal damages.