Mr. Bossman bought a Nissan diesel vehicle from Trans Africa Engineering and Motor Co. Ltd. However, when the vehicle broke down, Mr. Bossman did not go to the dealers for spare parts, but rather went to Messrs Jones Williams & Co., and through one of its directors, placed an order for the spare parts from Japan. The order was placed for the spare parts with TSS Co. Ltd, and by Telex, headed “we quote for Japan,” TSS Co Ltd, supplied Jones Williams & Co. with the requisite quotation, and that the spare parts would be delivered in three (3) months’ time. Mr. Bossman then got his foreign bankers to transfer the amount, being the cost of the spare parts to the bankers of Messrs Jones Williams & Co. Ltd, who in turn, paid the amount to the suppliers. When the spare parts were not forthcoming, Mr. Bossman sued Messrs Jones Williams & Co. for the return of his money, interest, and damages. Before the court case started, Mr. Bossman received the spare parts, and therefore had to abandon his claims.

Required:
a) Explain the following in terms of the provisions of the Sale of Goods Act, 1962 (Act 137):
i) The relationship between Mr. Bossman and Messrs Jones Williams & Co. Ltd.
ii) The relationship between TSS Co. Ltd and Messrs Jones Williams & Co. Ltd.

i) The relationship between Mr. Bossman and Messrs Jones Williams & Co. Ltd:

  • The relationship is one of agency and not of sale of goods.
  • Messrs Jones Williams & Co. Ltd never delivered to Mr. Bossman a pro-forma invoice of its own stating the price at which it would sell the spare parts to Mr. Bossman or the time it would deliver the goods.
  • All that Messrs Jones Williams & Co., Ltd did was to give Mr. Bossman a copy of the telex from the suppliers and asked him to pay for the cost of the spare parts calculated from the unit prices.
  • The obligation that Messrs Jones Williams & Co Ltd assumed towards Mr. Bossman was that of using its best endeavors to procure the goods for him on the most favorable terms, and they were not responsible for the delay.
    (3 marks)

ii) The relationship between TSS Co. Ltd and Messrs Jones Williams & Co. Ltd:

  • When the TSS Co. Ltd agreed to procure the goods for Messrs Jones Williams & Co. Ltd, TSS Co. Ltd did that as the agent of Messrs Jones Williams & Co. Ltd, or as a principal party standing towards Messrs Jones Williams & Co. Ltd in the relationship of a seller.
  • The contract between the supplier TSS Co. Ltd and Jones Williams & Co. Ltd was of the type in commercial circles known as Free on Board (FOB) contract. By the rules of FOB Contracts, the supplier assumed the responsibility for shipping the goods to the buyer.
  • The seller TSS Co. Ltd assumed no responsibility for insurance or freight, nor did it give guarantees as to the time of the arrival of the ship at its destination.
  • The only representation which TSS Co. Ltd made was that it was ready, willing, and able to deliver the goods (spare parts) within three (3) months to any port in Japan nominated by Jones Williams & Co. Ltd and load them at their own expense on the ship designated by them (Messrs Jones Williams & Co. Ltd).
    (3 marks)