Question
A Swiss corporation entered into a contract with the Canadian Dairy Commission to purchase anhydrous milk fat for the production of condensed milk. The contract
A Swiss corporation entered into a contract with the Canadian Dairy Commission to purchase anhydrous milk fat for the production of condensed milk. The contract was executed in Canada by a New York agent of the corporation, who provided that the goods were to be shipped to Algeria. The Commission was advised that it was to meet the import conditions of the Algerian government, and payment was to be made on presentation of a clean bill of lading and proper certificates of analysis of the goods. While they met the contract stipulations in Canada, the goods were rejected by the Algerian authorities because the caps on the drums had not been sealed and some of the caps had loosened during shipment, allowing the contents to spoil. The Swiss corporation then brought an action against the Commission for rescission and reimbursement of the contract price. Discuss the arguments that the parties might raise, and render a decision.
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