(1.) In this case plaintiffs entered into a contract to sail 60 bales of yarn of various counts to defendants. Exhibit A dated 21 August, 1918, is The first written record of the contract and in respect of the count of 50's with which we are mainly concerned, it was agreed that 30 bales should be supplied at Rs. 16-12 0 per bundle of 5 lbs. On 23 August, 1918, plaintiffs wrote another letter, Exhibit C, stating that the bales sold were those purchased from Rayalu Aiyar Nagasami Iyer & Co., which the latter were buying from the Mills at Rs. 14 per bundle.
(2.) These two letters were accepted by defendants in Exhibit B and we may take the three documents together as embodying the terms of the contract. Plaintiffs delivered 28 bales, including 7 bales of count No. 50, between 9 September, 1918 and 14 October, 1918. The first 3 bales of 50's wore paid for in full after deducting the advance paid in respect of thorn. All the bales were loft in defendant's godown and no objection was taken until 19 December, 1918 (Inhibit 11). It then transpired that Rayalu Iyer Nagasami Iyer & Co., had purchased 50's from the Madura Mill at Rs. 9-8-0 per bundle as well as at Ra. 14 per bundle, and some of the former bales were supplied to defendants.
(3.) It is admitted that the goods in all the bales were of the same quality and description, except that some were sold by the Mills at Rs. 14 per bundle and some at Rs. 9-8-0 per bundle. As the contract was in respect of bales sold at the former price, and goods of the latter price wore delivered, on the authority of Sivarama Iyer V/s. Subbiyer & Sons A.I.R. 1922 Mad. 23, this amounted to a breach of a condition of the contract and we may take it as such.