CHeprsn5 OF AND REJECTION GOODS ACCEPTANCE

5-001 In the performance of a contract of international sale the rules relating to the examination, acceptance and rejection of the goods are of great practical importance. If the contract is governed by English law,r these rules are founded on the Sale of Goods Act 1979.2 If the parties to an international sale have adopted the Uniform Laws on International Sales, appended to the Uniform Laws on International Sales Act 1967 or the Vienna Convention on Contracts for the Intemational Sale of Goods (1980), which eventually will take their place,3 the rules set out therein will govern the examination and acceptanceof the goods. These rules will be discussedlater.o The general principle on which the regulation of the Sale of Goods Act rests is that if the buyer is deemed to have acceptedthe goods, he loses his right to reject them. He does not, however, lose all rights with respect to them. Although he is now bound to retain them he can still claim damages if the value of the goods which were actually delivered is less than the value of the goods which the seller promised to supply. This claim for damages is not lost as the result of legal rules peculiar to the sale of goods. It is governed by general legal principles. It is not lost by lapse of time until it becomes barred under the Limitation Act 1980; as most mercantile contracts are in the nature of simple contracts, the seller is normallys entitled to plead the defence of limitation after the lapse of six years from the breach of contract. The tendency of English sales law is to discourage the rejection of goods by the buyer but to allow, without serious restriction or qualification, his claim for damages if he has overpaid their value, as expressed in the contract price. Conditions. warranties and innominate terms 5-002 According to the Sale of Goods Act 1979, the terms of the contract of sale are either conditions or warranties. This simple classification has proved to be insufficient in commercial circumstancesand the courts have supplementedit by

I See posf, paras 21-O02 and 21404 et seq. 2 As amended by Sale and Supply of Goods Act 1994 and Sale of Goods Amendment Act 1995. 'This Convention came into operation on January 1, 1988, but has not been given effect in the U.K. yet. o Seepost, para. 30-O26 et seq. s The period of limitation may be longer if there is a new accrual of the action as the result of an acknowledgment in writing or part payment, or in case of fraud or of similar circumstances.

84

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86

Acceptance and Rejection of Goods

of a sample provided,l8 or with sample and description.teThese terms are implied by law into contracts of sale but, subject to the Unfair Contract Terms Act 1977 (which does not apply to international supply contracts),ffi?y be contracted out of or varied.2o In addition to the statutorily implied conditions certain terms in international sales contracts are taken to be conditions. Generally, terms as to time are held to be a condition of the contract.2r The port of loading in an f.o.b. contract is a condition,22 is the name of a vessel and the type of vesselto be used for the as cariage of the goods if they have, unusually, been agreed between the parties. In the absenceof any such agreement it is a condition of the contract that the goods be carried on a vessel that is usual in the trade for the carriage of such goods.23 It may therefonj'$e seenthat a breach of a condition operatesas a repudiation of the contract by the party in breach.toConsequently, a buyer who is entitled to reject the goods is in the same position as a buyer to whom the goods were not tenderedzs all. unless the breachedterm has to be treated as an innominate at such as a trade term,26 under the de minimis rulett or special considerations, or parties to the contrary,2t upply. In the normal custom or an agreement of the casethe buyer is entitled to claim damagesfrom the seller for the non-delivery If of the goods.2e he has paid the purchaseprice in advancehe can recover it by way of damages,and if he has suffered other reasonablyforeseeableloss, he can recover damagesas well. The motivation for the buyer's desire to reject the goods is usually that the non-conforming goods which the seller has tendered are uselessto him and that the claim for damages is his only remedy. The practical point in the distinction between the buyer's right to reject the goods on the ground that a condition of the contract is broken and his right to claim damages for breach of warranty is that in the former instance the buyer can often claim damageson a considerably higher scale than in the latter. Where a party is entitled to damages,he is bound to take reasonablestepsto mitigate his
r 8s .1 5 . 'e s.l3(2). 2 0 s . 5 5 . S a l e o fG o o d s A c t l g 7 g , s e e a l s o U n f a i r C o n t r a c t T e r m s A c t 1 9 7 7 , s . 2 6 ( l ) , ( 3 ) , ( 4 ) . " Bunge Corporationv.Tradax Export SA [980] I Lloyd's Rep.294; t19801CA; [981] 2 Lloyd's Rep. 1, HL. But see State Trading Corp of India (n.7, above); Phibro Energy AG v. Nissho lwai Corp (The Honan Jade) |9911 1 Lloyd's Rep. 38; Torvald Klaveness AIS v. Arni Maritime Corp (The Gregos) 11993] 2 Lloyd's Rep. 335 at 347. 22Petrotrade Inc v. StinnesHandel GmbH tl995l I Lloyd's Rep. 142. " Ashmore & Son v. C. S. Cox U899) I Q.B. 436; Bowes Shand (1877) 2 App. Cas. 455. 2as.l1(2). " The seller may, however, make a second tender of new goods if the time for delivery has not expired. Hyundai Merchant Marine Co Ltd v. Karander Maritime Inc (The Nizuru) tl996l 2 Lloyd's Rep. 66. Vienna Convention, Art. 48(1). 26Seepost, para. 5-004. 21De minimis non curat lex; seeMoralice (London) Ltd v. E. D. and F. Man 2 119541 Lloyd's Rep. 526; Rapalli v. K.L. Take Ltd tl958l 2 Lloyd's Rep. 469. tt The conditions of trade associations which, e.g. in the commodity trade, are widely adopted, sometimes exclude the rejection of goods. " The measure of damages is the difference between the contract price and the market price, if there is an available market for the goods (s.51(3)). The relevant market price is that ruling at the date of delivery or, failing delivery, that at the date of refusal to deliver. See also Procter & Gamble Philippine Manufacturing Corp v. Kurt A. Becher GmbH tl988l 2 Lloyd's Rep. 21.

'tt 'g'o I I9L6rl Lc 'L69 'U''I'A! .^ F Z6S [tg6l] gV DurarrapaYuaps VS Dra^DN orADdwoJ sot2luv :6lV 'deg s,pfoyl .^ o) ,l0Z,EII ,60I .de1 s.p,(o11 Z, tgL6ll Hqag adonE oJ puD lnsqry T uqorx .^ ?, tBL6Il VgAd wa8azl auua^V uapuDA Hqw {nqtsllasaBs\apuDH rawarg ur ecroFoqlrl\ pro.I nd osle ees :866 lB 696 'u''I'1y1 | tgL1rl ua7uoyuasuol1 tor7utr '^ pt7 aury qrws uoprnaa ul n, '^\oleq ees :rT g'o aqJ:Hqa {or1cs11asa3s1apulH rawarg .^ A}\I a^DqaJ sE I tgtetl ptoN DSUDH '92 'g'0 .^ T,lZ96Il pt.I Dtlslox uasrx nlDSDtulDX pj7 o3 Butddttqgttg Buo47uog ,i '111,otdnsxDpDU.a.a7ung osp ees .rIgrc 669'dag s.p,(o11 '^ Z [S86I] p17 o) aruDrnsul uouD^lDH VS araarg lo oJ aruD)nsul prauaD nuaolld l(uodsuurl Jeululuoc ro; drqs paJeiluqo u 3o flrpqellns eql SurealuerenE esnelJ aeluuren8 reurutuoc) y1g 'dag s.p,to11 uoyntq.^ awrurDryprauag aruBodwoS:g66lB 6g6 Ztzg6Il soututraqJ:VS t1t1dg 'U''I'l71\ | l9L6ll ua7unyuasuog na.3utr'^ pry aury qilws uoproay :Eg-Zg,OL,1g.r, .g.O I tgL6I) ptoN DSUDH aqJ:HEa {oqcsllasa?sppuDH rauarg.^ AN a^DqaJ:79t .g.D I lIL6Il sola7uy .t sllDqln aqJ :Zg'Og'VL'd'.I'A\ I [396I] pt.I sartuas {otctty alBoE pt7 (lontautwo3) rcnt1 suotunaoe pauun :92'g'O Z \zgOtl ptT DrtslDXuastx npsnntDx .^ ptT o3 Butddttqg trg Buo4?uo11 ,, 'tI9 'ded s,p,(o11 I [tg6l] pt.1 @opuofl ygp .,r gX o) T Hqug uuDwlapry rapntqag '6gs 'u'.I'J .^ oJ uDls puD raqpa.I sra$aI zE ng $r6D p17 sra|org sDasra^opuD aaoH rc 'S09 'de1 s,p,{o11 I [gg6l] tloqlos at4Jo,

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88

Acceptance and Rejection of Goods

metric tonnes and was carried in The Hansa Nord. The contract price, converted into sterling, was about f 100,000 but the market price at the time of arrival of the ship had fallen considerably. On discharge from The Hansa Nord the cargo ex hold no. 1 (1,260 tonnes) was found to be damagedbut the cargo ex hold no. 2 (2,053 tonnes) was in good condition. The buyers rejected the whole consignment.The Rotterdam court ordered its sale. It was purchasedby a middleman for a sum which, after deductionof the expenses, amountedto an equivalent of f29,903. The middleman sold the pellets the sameday for the sameprice to the original buyers who took them to their factory and used them for the manufacture of.cattle food although they received a somewhat smaller quantity of pellets than they would have done if part of the consignment had not been damaged. The total result of the transaction was that the Dutch buyers received goods which they had agreedto buy for f 100,000at the reducedprice of about f30,000. The case went to arbitration and then to the courts. The Court of Appeal held that the contractual term "shipment to be made in good condition" was not a condition within the meaning of the Sale of Goods Act but was an innominate term. Lord Denning M.R. said38:
"If a small proportion of the goods sold was a little below that standard, it would be met by commercial men by an allowance off the price. The buyer would have no right to reject the whole lot unless the diversence was serious and substantial."

The court held that the buyers were not entitled to reject the whole consignment but were entitled to damages for the difference in value between the damaged and sound goods on arrival in Rotterdam. The case was remitted to the arbitrators for the determination of these damages. Section 15A, inserted by the Sale and Supply of Goods Act 1994, provides that where a buyer would have a right to reject goods on the grounds of a breach of sections 13, 14 or 15 and does not deal as a consumer,he may not treat the breach as a breach of condition where it is so slight that it would be unreasonable to do so. The buyer in such a circumstancemay only treat the breach as a breach of warranty, although the parties may provide otherwise expressly or implicitly. It is suggestedthat entry into a contract on f.o.b. and c.i.f. terms implies that the parties do not intend section 15(A) to apply.3e However, the concept of the innominate term should not be overused.Many terms are regarded by the parties to the contract as so essential that they qualify as conditions in the legal sense.This applies,in particular, to most time clauses "buyers shall in commercial contracts,ao tn an f.o.b. contract a clause that e.g. give at teast[15] consecutive days' notice of probablereadiness vessel(s)".ot of
38ibid. at 61. 3eSee ss.15(AXl), l5(A)(2); Benjamin, Sale of Goods (5th ed.), para. 18-224 and Law Com. No. 160, paras4.23,4.24. aoLombard North Central plc v. Butterworth t19871 Q.B. 527; but not every time clause is a condition, see generally Bunge v. Tradax, post, n.41. o' Bunge Corporation v. Tradax Export SA tl980l I Lloyd's Rep. 294, t19801 CA and |9811 2 Lloyd's Rep. 1, HL; Soci4td Italo-Belge pour le Commerce et l'lndustrie SA v. Palm and Vegetable Oils (Malaysia) Sdn Bhd; The Post Chaser t19821 I All E.R. 19; State Trading Corporation of India Ltd v. M. Golodetz Ltd |9881 2 Lloyd's Rep. 182 at 1871' Compagnie Commerciale Sucres et Denrdes v. C. Czarnikow Ltd;The Naxos t19911 I Lloyd's Rep. 29 at 36.

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90

Acceptance and Rejection of Goods

the learned judge could now refer to the additional words contained in section 35 of the Sale of Goods Act l979.ot These words make it clear that the buyer's right to reject exists until he is given a genuine opportunity of examining the goods. In export sales the place and time of examination are frequently not those of delivery but are postponed. In a contract of export sale the place and time of delivery is usually defined by the special trade clause which the parties have adopted.ae Where the seller is not obliged to tender a bill of lading to the buyer, as in salesex works, f.a.s.,f.o.b. (buyer contractingwith carrier), or in container delivery contracts,physical delivery of the goods takes place in his-the seller's-country.sO Where bills of lading have to be tendered,as in f.o.b. contracts of the classictype or providing additional services,c.i.f. contracts,and c. and f. contracts,the delivery of the goods is constructiveand completely divorced from the actual situation of the goods. Whether in an export sale the delivery is physical or constructive,the two conditions postulatedby Bailhache J. in the casereferred tosr for the postponementof the place of examination are normally satisfied.The goods are usually ordered and packed for export, and these facts alone indicate to the seller that they are going farther on. The locality at which the delivery takes place is usually unsuitablefor the examination of the goods, so that it is unreasonable expect the buyer to carry out the examinationthere. to Consequently,in an export sale, unless the parties have otherwise agreed,for example by arranging pre-shipmentinspection,t' or a trade custom provides a different practice, it has to be assumedthat the parties intend that the examination of the goods shall be postponeduntil the goods have arrived at the place of Thus, their destinationand that that place is the agreedplace of examination.s3 "the exercise that in a case concerning a c. and f. contract HobhouseJ. saidsa of the right to reject goods is one which the seller is entitled to postponeuntil the goods arrive." Further, in Molling & Co v. Dean & Son Ltffs the sellers, colour printers in Germany, sold the buyers 40,000 toy books which, as they in knew, the buyer had resold to sub-purchasers the United Statesof America. The books were packed specially for carriage to America and the buyers, without opening the cases, sent them on to their sub-purchaserswho rejected them rightly as not being in conformity with their contract and re-shipped them to the original buyers (their sellers). It was held that the place of examination was postponed to America and that the buyers were entitled to reject the books and

a8In s.35 the reference to s.34 was already added by the Misrepresentation Act 1967, s.4(2). oeSee ante, para. 4-{03. 50Normally, when the goods are delivered to the carrier for transmission to the buyer (s.32). 5t Saunt v. Belcher and Gibbons, supra, n.46. t'See para. 4414. s3Molling v. Dean (1902) l8 T.L.R. 217: Boks v. Rayner (1921) 37 T.L.R. 8001' Bragg v. Villanova (1923) 40 T.L.R. 1541' Scarliaris v. Ofi'erberg & Co (1921) 37 T.L.R. 307, CA; Biddell Bros v. E. ClemensHorst Co tl911l I K.B. 934 at960;' Kwei Tek Chao v. British Traders and Shippers Ltd t19541 2 Q.B. 459; Bergerco USA v. Vegoil Ltd 11984) I Lloyd's Rep. 440. to Bergerco USA v. Vegoil Ltd |l984l 1 Lloyd's Rep. 440 at 446. For a fuller quotation from this judgment see para. 2426. " 0902) 18 T.L.R. 217.

'99 ''I'g'f 'unorg 'I eeS tggOtl ..spoog Jo el"S eql ur ecueldmcv,, es 'lJeJep eql Suuanocsrp;o flrungoddo uu ppq aq q8noqtp spoo8 eqt peureler re,(nq eqt leqt '1ce1e se 'puno; e8pnf eqt ruil.l eJoJOq es"J eql ur ilereua8 ool eq lqSlu lueruele1ssrgl :lJeJap aql Jo e8pelrrroul ou p?q aq q8noqtlu uorlueler ,(q spooS aql paldeccu e^Br{ot peueep eq plnoc re,(nq e leql 'rattqo'pleq 'I rerSnog 0ZZ'd11 llv Z |Lg6ll pt7 (uaarg staplog) srotory uosraDd '^ uatsurag uI zs '9Sl 'd'J 'u'T '^ t2 8t t QLSI) uoelsrH ilnqlraH urf uerg r?d s 'eunl 3uo1 ,{lquuoseerunue JoJ peuruexoun osnoqeJe^\srq ur spoo8 eql lde{ eq lpql Sununssy u, '(Z)9's ss '(suosred esoql Jo ,(ue;o uorssessod ur spoo8 eql Surlredsurgo flrungoddo elqe eql -uoseeJu suq rar{nq e ',{leuotldacxa 'ssalun) ur.uesnoqoJe^{ JepJB^\ro;'rauluc B s? qcns '(asofund Jo yo lstll ol pelFull sr fluoqlne asoq^\) uorssrrusueJl sasod:nd eq1rog lueSu ue qlr^\ palsuluoc sV rs 'ES6l 'OZ,{reruqag 'sawtJ ar.lJpt7 oltDry '^ sronquisKl alDsapqq d T I ruoq s^\olloJ SIILLo.

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lJe[oJ ol pellrlue eq ilrls plno.,!\Je,(nqeqt 'uorleuuu?xe Joud uo lou lnq 'pesn eJe spoo8 aql ueq/y\pare^orsrp eq fluo uec lceJepeql JI ',{1elr1ce;;elno peu?c ueeq e^?q plnoc uorlsulusxe qJns qcTr{,!\t? el'ull eql ol peuodlsod sr lreJep 13ql ol lJedseJqlIA\ uorl?wtu?xeJo etup er{l re'..uollcedsuue uo 1DISJo eJ?cJoesrcJexe elqsuossoJ 1(u?,{q elqeranoJsrp ueppq e^?q spooS ew aJeql[ lou,, 6slceJep 'eJeld Jer{loueJo uorleurlsep Ieug Jo eJeld er{l 'frerrqep 'uorleuru]exe ecsld eql Jraql lu IB^!"Lrc Jo oc?[d eql sl lsql Jeqleq^\ Jo rous olqucrperd su flffo s3 spooS eql eurtusxo ol luoprud sfemp sr 1I 0e'spoo8 eql Jo eJuBldeccBuB eq ol poruoop sr pelcefer ere spoo8 eql 13qt uort?rurlur lnoqllA 6spesd?les?q eturl Jo lunotus elqsuos?eJ e retlv spooS Jo uorlueleJ eql esneceq 'flln?J er? {eql l?ql sro^ocsrp eq Jel?[ sqluoru .,(uutuueqa uroql lcofeJ louu?c ueql Surlcadsurlnoqlra\ osnoqeJel\ slq 01 ue{q ee ot ueql sJapJo spoo8 eql Jo Ielrrre JeUeoq^\ refnq B 'snqJ 'spoo8 er1llcefal ol lq8u srq sesol ro,(nq eql esece qJns uI 'flrunuoddo leql ue^r8 ueq^\ spoo8 eql Surlcedsuruorg suleqer eq 'eldtupxeJoJJI 'lq8rr srql se^rBly\ 'eprcapol tulq JoJsl uorluu[uexe eH Jo lqEF srq selrulrr ro l(lrungoddo leql Jo Jlesurq slr?Ae ro,(nq oql ror{lor{l11 ,r',(lrungoddo tuqt ue^r8 q eq Irtun spoo8 eqt peldecce e^eq ol peueep lou sr aq l?ql sepr^oJdpu? spooEeql Sururu?xeJo ..flrungoddo elqeuosueJ,, ue^r8 ? eq ro{nq eql leql serrnbor,(1ereu lI 'ecuuldecJurreql Jo tuepecerduoplpuoc u spooS oql Jo uort?u[u?xo aql o{el.u lou seop lrv oql leql pelou eq pFor.ISu 'uorlsurlsep ',{lrlpcol aleturun Jo ecBld eq1eq ,(11euuou llrly\ uorlunu?xeJo eJeld pepuelu eql 13ql ol uo{31 eQot e^?q 'pepusl uooq Surrreqre$? 'spoo8 eqt pu? puspr pel?nlrs sr uorleurlsap Jo oc?ld eqt eJeql[ '(.pcerluoc eql Jo ocusrruoJJeduI lue33 srr.l 'uoD oql Jo lsql ro) ,rrer(nqeql Jo sosrueJdsseursnq sr uorl?u[u?XoJo oo?Idoql -EuuuexeJoJelqelrnsun sr SurpuulJeU?ue>le1 ,(eql qclqr!! olw esnoq suolsnJ ere aql Jo pepuel ere spooE eqt qcrq/y\ 13Jnq/r\ eql eJeql\ 'se1espuorluelq uI 'ryo^ ^\oN ur rueql uo pred r(1npeqt w 'pue13ug ol Ile^\ se I,.lBq ereql tUoJJpue eJrJeuv ol ueql SurpuesJo lsoc eql so33tu3ps3 rurslc ol

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92

Acceptance and Rejection of Goods

does not provide that the mere receipt of the goods shall be deemed to be acceptance.On the other hand, approval is not always required by the section: in two of the three circumstances set out by section 35 a buyer is deemed to have acceptedthe goods though he may not have approved them. The buyer is deemedto have acceptedthe goods:
(a) when he intimates to the seller that he has acceptedthem (s.35(1Xa)); (b) when the goods have been delivered to him, and he does any act in

relation to them which is inconsistentwith the ownership of the seller (s.35(1Xb)); or (c) when, after the'lapseof a reasonable time, he retains the goods without intimating to the seller that he has rejectedthem (s.35(a)). The first of these three cases is obvious and does not need clarification. As regards the third, it should be noted that indecision on the part of the buyer may lead to the loss of his right to reject the goods, that is, if he retains them for an unreasonably long time without intimating that he has rejected them. The Act refrains from requiring a fixed period of time within which the buyer has to "Reasonabletime" is a flexible requirementwhich varies intimate his rejection. according to the circumstancesof the case; the question of what is a reasonable time is always a questionof fact.s The prudent buyer will, as observedearlier,65 examine the goods as soon as they arrive at the place of examination and will then decide whether to reject them or to keep them. Of particular importance is the second case. First, this circumstance arises only after the buyer has been afforded a reasonable opportunity of examining the goods. Secondly, "an act inconsistentwith the ownership of the seller" is deemed to be an acceptance of the goods only after the goods have been delivered to the buyer, but the delivery need not be physical. A delivery to a carrier for transmissionto the buyer, e.g. under an f.o.b. or c.i.f. contract,would An be sufficient.66 act inconsistentwith the ownership of the seller is any act by which the buyer behaves as if he were the owner of the goods. Whereas any disposal of the goods, e.g.a resale and dispatch or delivery of the goods to a or sub-purchaser, the pledging of them as a security, was deemedan act inconsistent with the ownership of the seller, becausethereby the buyer acceptsthe this no title to the goods although he might not have acceptedtheir quality,6T the longer reflects the law. The Sale of Goods Act now provides that68 buyer is not deemed to have acceptedthe goods merely becausethe goods have been delivered to another under a sub-sale or other disposition. The thrust of the

* s.59. u' See para. 2426. 6 See s.32; Kwei Tek Chao v. British Traders and Shippers [1954] 2 Q.B. 459; Bergerco USA v. Vegoil Ltd ll984l I Lloyd's Rep. 440 at 445; see also Benaim v. Debono t19241A.C. 514. ut A mere resale of the goods (unaccompanied by a disposal or an attempted disposal of them, such as a dispatch to the sub-purchaser), or an inquiry whether the goods are saleable, is not an act inconsistentwith the ownership of the seller. s s.35(6Xb).

'^ q '6ZL'ded, s.pfol'I VIS prDrry I [666I] (DnaS aqil pq oJ apoq u8V louo\ouraul '(gxz)0g's ur lno les sr ernsuau aql 'Os's 'ocuuldecsu-uouroJ seSsuep uI YrnJ v st1 aag aes elqerl sr spoo8 SurtuJoJuoc esrl\Jaqlo Jo slJefeJ,(18uorn oq,r ra,{nq eql lng 'plq! sL ldecJe ol sasnJeJ 'uV 'uoqueluoJ erruar1 eas '99's 'lcefer o1 1q3fgo ssol s.re'{nq uo 6g ,r 'ttt) qpaH'^ pool4De wlqDrqg 'ZIS 'ded s.pfo11 Z[196ll (lZ6t EL 'e^oqu '6'u eos '(vZ)0's zr '0's rr 'VS's ol lcefqnssI'ronalr\oq'slt{.L'(?)lI's or '^\olaq '800-S 'ered pue otdns 'oor72 ',tluncas go ,(e,r ,{q IaJ laltry aes ryuq u ol pa8pald rg un

eJec elqsuoseeJ esrJJexe seq eq 'eelreq e Sureq 'lnq ,rpeerSusr sql ssepn ol Jelles eql o1 ueql runleJ ol punoq lou sr spoo8 oql slceler oq^\ Ja.{nq eql 'e^IlceJ 'rellos eql seqJ?eJ leql urBueco>letu -Jeursr lr esr^\Joqlo plnoqs Je^nq oql lnq 1r 'Surlu,t. ur Jo xBJ'xa1a1 ',(1pqra^ uenr8 eq [?tu qclqn,\'uorlcefer ecllou eql ,(q Jo roJ peqlJcseJdsr rruoJ oN 'tuaql ol relles er{l Jo eltrl eql seruepre{nq eql qclq^\ ,(q spooE eql ol Surtular lce rre ,{q patcrpuruoc ee lou plnoqs pw etlugep pue JBelc eq plnoqs ecrlou srqJ 'tueql ldeccs ol sesnJereq lBql Jelles aql ol ?retull elq?uoser e urqlr/r\ olsrurlur ol S?q spooS eql lcefer ol seqsr^\ or{^{ ro.(nq v spoo8 Jo uollrafau eql r'repurBruer lJafer ol pu? spooE peJepueler$ Jo eEeluecredelqeuoseer? ldecJ? ol pallpue sr aq spoo8 Jo ed/q euo f1uo perepuel sr lnq spoo8 3.peuoss?"lq8noq S?q re.(nq eql ererllros op ol elqsuos?eJun eq plno^\ ll 1uql lq8qs os sr lleJuor{s ro ssacxa luql JI spoo8 Jo ,&rlwnb uI 'JoUTnSUOC JO U? 3 u?ql Jeqlo 'Jefnq e leql .r'Se1?S II?JUOqS SSeCxe lCe[eJIOU1(3(u suesJe^our ,(lereua8 ,{1ddelou ilr^\ uorlces eql lerlt uorlrsodoJd eqt 01 lcefqns sr UreEB e^oqe eel rr'peldeccueq 1q^\ro; ,{ud ol seq eq lq8noq eq wql ftpuunb re8rul Jo Jelptus B sldocoe eq Jr lnq 'sJeqlo eql lcefeJ ol puu ,(1r1uenb lmr1uoc eql ldecce ol ro lueuru8rsuoc eloq^\ eql lcoloJ ol pallrlua sr Jefnq eql 'spoo8 'releznoq 'lueJeJJIpsr uotlrsod eql ;o ,ftr1uenbSuorryroql sJopuelJellas eql JI 'tuer{l Jo etuos Surldecce ,(q spooE eqt Jo repumtuer eql lcefer ol lq8lr srq esol lou seop eq spoo? oql Jo IIe ro er.uosslceJJs13ql qcBerq 3 Jo uosser ,tq spooS 1cefero1 1q3rrB wq ra,(nq 'JoAoA\oq 'sHI u Jr leql saprlord qcHA Vgg uorlces ol lcofqns sr ./'spoo8 eI$ 'spoo8 eql ;o gud raqlo eql lcafer re8uol ou uec eq Jo u?d paldeoJseq re,(nq eql pu? 'epuur a9 ol sr 1uaru,{edero;eq palelduoc eQ ol eJ? qcrq^\ slueurl?lsul ur poJe^rlopeq 01 oJu spoo? eJeq^\ sr ler{l 'elqureneslou sr lc?Jluoc eql JI un'resuqcrnd -qns e ol uo ..ploS,, eJe sluouncop eql esnsceq ,(1durs lsol lou s1 lceler o1 lq8rr oql 'so^lasuaql spoo8 er{t Jo ecuuldecc? Ieuorlrpuoc fpo ol stunotuu sluouncop eql Jo ecueldecceoql ler{l Jeolo sr 1r eldurexe JoilBI eql q 'sluetuncop Jo uorl?lueserd eql ^q pelceJJe sr ,{re,rr1epaql eJeq^\ suorl?nlrs w pu? eles -qns B repun spooE;o reqddns eqt ,{1areu sr re,tnq aql uogo eror.{/y\ seps Isuoll -?ruelu Jo lxoluoc eql uI prrBlsJepun JarsuaJer.IluJ lueupueuB sIqI 'uoE ol sr -cadsur;o eceld ercJBr.urrd aqt tuor; .,ftertr1ep ueeq seq ereqt q8noqtlu spoo8 aqt petdacce eleq ol per.ueep ,(luesseceulou sr eq 'rer(nq-qns e ol uolleultuuxe lnoqlrA\ spoo8 lJeJluoc eql uo sessedrer(nq ? eJeq/r\ler11seJnsuouollcesqns

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94

Acceptanceand Rejection of Goods

with respect to them. Subject to this obligation, if the goods are rejected for good reason and in good time, the risk of loss of, or damage to, the goods is with the seller. Unless a different intention of the parties is expressedin the contract or can be gatheredfrom its terms by necessaryimplication, the buyer's right to reject the goods is postponeduntil the goods arrive and he has a reasonableopportunity of examining them.Tu appropriatecasesthe buyer may reject the goods even In before having received them, that is, if he notices from a provisional invoice or advice note that the seller has dispatchedgoods which are not in accordance with the contract.TT seller, except in c.i.f. sales,78 A who has tenderedgoods not in accordancewith the contract may cancel the original tender and make another tender, but only if he can make the other tender within the time stipulated in the Branson J. said in one case8o: \ contract.Te
"It does not prevent the seller, if he has time within which to do so, from tendering another parcel of goods, which may be goods which accord with the contract, and which the buyer must, therefore, accept and pay for. It cannot be predicated in any particular case that, if the first tender is not a proper tender, there may not yet be another tender which is a proper tender."

'

Right of rejection in c.i.f. contracts 5-008 Some observationshave to be added on c.i.f. contracts.As has been explained earlier,8rthe characteristic feature of these contracts is the importance attributed to the shipping documents.It has been held, obiter, in Kwei Tek Chao v. British Traders and Shippers Ltd,82 that a disposal of the bill of lading (which is part of the shipping documents)is not necessarilyan act inconsistentwith the seller's ownership of the goods and that, in principle, a c.i.f. buyer does not lose his right to reject the goods by dealings with forged documents,e.g.by pledging the bill of lading to a bank. In that case,the questionwhether by dealing with the documentsthe buyers had done an act inconsistentwith the sellers' ownershipin the goods did not arise, but in the interest of "those who may be concerned" Devlin J. observedthat so long as a buyer was merely dealing with the documents, he did not commit an act inconsistentwith the seller's ownership in the goods and retained the right of rejecting the goods if upon examination after their arrival they were found not to be in conformity with the contract. The argument that the buyer, when reselling the bill of lading or pledging it to a bank, intended to give the sub-purchaseror pledgee a proprietary interest in the goods and passedtitle to him, was rejectedby Devlin J. on the grounds that the buyer himself had only conditional property, viz. property conditional on the

'u Bergerco USA v. Vegoil Ltd |9841 1 Lloyd's Rep. 440 at 446. " E. E. & Brian Smith (1928) Ltd v. WheatsheafMills Ltd t193912 K.B. 302. 78Where it is important that the tendered documents are in order. "The Treatment Breach of Contract" 'n Borrowman v. Free (1878) 4 of Q.B.D. 500; Lord Devlin, tl966j Cam. L.J. 192. 'o E. E. & Brian Smith ( 1928)Ltd v. WheatsheafMills Ltd [1939] 2 K.B. 3O2at 314. 81Seeante, para. 2419. " 11954) 2 Q.B. 459; see also ante, para. 2426.

'uorleurlsap etu?s al{l elJlput ,{eql peprnord ,(eurno[ eues IBruBd Suuarroc se pepre8ar eq lou lpzrn eql JoJ prm acuu,{er'.uoc sueotu atues eql uo eputu ueeq seq lueurdrqs luql elmrpul ol ecuJJlaql uo Jo reedde qJIq^\ sluarunJop godsuerl,, leqt (q)tt 'uV ul papr,r,ordsr 1r 'Jeqund 'esl/ilaqlo selelndrls ere slueurdtqs prged rcql (B)gt 'uV ul aptnord (uorstneg 66I) dJn oql lrperc er{l sselun pe^\o11e arag '3urpu1Jo slllq qcns lcefer ot {wq aqt 3u11trlua'tlparc Jo sreuel ;o sasofund aql JoJ ..stueu -drqs 1erged,, olnlrlsuoc 8urpu1Jo slllq luJa^es Jopun slueudrqs raqleq,r st uorlsenb luoJaJJIpV s8 't00-S 'ured ae5 'plq! ,, s8 '[ '^ pt'I suos 'LI 'U''I'1$. T loquasoy II I [996I] lrDusg sE '..lcpJluoo alu:edas e peJaprsuoceq lluqs luerudtqs qcee,, :peprlord '^ lr?rluoc eqt W'g'O I \gtOtl proN osuDH aLlJ :Hqw tprlcsllasa8sppuDH rauarg N\I a^Dqal uI ,g 'p^rlrs uo spoo8 aql lcefsr o1 lqBF e aneq IIrl\ aq leql eJBA\u rafnq eqt Jr uele paldecce eq lsnu slueuncop Sutuuoguoc luql peprrrord sr sr rr ereq^\ Z8 'J'V t?86I1 rut oJ V n?tag 'd,yg sntlnq T mg eas 'r8? N 69V'g'O Z [tg6t] ,,

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,,'fgedord Ieuorlrpuoc aql u?ql arour Sutqletuos qll^\ spep eq sselun dtqs -Jeu/r\os.Jolles oql qlr/r\ luolsrsuocur sr qsrq^\ Surpep ou eq u33 aJeql l3q1 'oJoJeJeql's1|o1lo; 'spoo8 aqt ur ,(uedord t1 leuorltpuoc leql qlr^\ ,{po s8utpep aJu slueuncop eqt qlrm s8ulpap slq I1y 'luanbesqns uorlrpuoc u Sureq uoqrpuoc aql 'spoo8 aql ur ,{uedord puotltpuoc ,(po sta? aq luql sueruluILL 'loeruoJ eql qtr/r\ eJuepJoJceur lou eq ol ureql spug aq uorleurruuxe uodn ;r lse,nar,(aql leql uorlrpuoc eql 01 lcefqns 'spoo3 eql ur ,{uadord aql sr 'ruF{ ol uenr8 sr sluaunJop eql Jepun alln eql ueqa sumlqo re.(nq eql luq^\ leql sl /r\er^ arul eql luql ry1ql L, :spl?s '[ wl^oc leep lou plnoc eq eJoJeJeql 13r{1 pue lcBJluoc ',(Uedord tretD orou qlr^\ Puolllpuoc eql qlIA\ eJuepJocce w Suleq spooE

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96

Acceptance and Rejection of Goods

Property in rejected goods 5-010 The property in the rejected goods revests in the seller when he accepts the rejection.seWhen he does not accept the rejection it is believed that if it is later decided by the court or arbitration tribunal that the rejection was justified, the property likewise revests in the seller because, as Devlin J. observed in the Kwei Tek Chao case,eO the property passes to the buyer subject to a condition subsequent that on examination the goods are found to be in accordance with the contract. A buyer who has paid the price in advance and then rejects the goods is not entitled to retain them by virtue of an "unpaid buyer's lien"er until the price is refunded. In the case of c.i.f. contracts dealings with the documg4ts do not affect the right of the buyer to reject the goods. This right normally arises only after the arrival of the goods when they can be examined.e2 Rejection and estoppel 5-011 If the buyer has a valid ground for rejection of the goodsbut so conductshimself as to lead the seller to believe that he is not relying on that ground, he is estopped-precluded-from setting up that ground of rejection when it would be unfair or unjust to allow him so to do.e3On the other hand, if a buyer has rejected the goods on a ground which he has notified to the seller, he is not confined to that ground and can later rely on other grounds for the rejection.ea If owing to a frustrating event the rejection of the goods becomesimpossible,it would appearthat the buyer has lost the right to reject the goods.e5 Relaxation of strict performance of contracte6 5412 It sometimes happens that a party to a contract of international sale does not insist on strict performance of the contract when the other party asks for indulgence. The buyer may ask the seller to defer the date of delivery of the goods or the date of payment of the price, or the seller may ask for extension of the shipping time. The party to whom such request is addressedmay fully realise that, according to the terms of the contract, he is entitled to refuse it and, if the other party does not perform, he may treat the contract as repudiated and claim
shipments, even if the transport documents indicate different dates of shipment and/or different ports of loading, places of taking in charge, or despatch." tn J. L. Lyons & Co v. May & Baker 11923) 1 K.B. 685 at 688. no [954] 2 Q.B. 459; see ante, para.2426. er An analogy to the unpaid seller's lien (seepost,para.5-{15) is not allowed:J. L. Lyons & Cov. May & Baker 1192311 K.B. 685. e2 See ante, para. 5-{08. e3Panchaud Freres SA v. Etablissements General Grain Co t19701 I Lloyd's Rep. 53 at 57; Motor Oil Hellas (Corinth) Refineries SA v. Shipping Corporation of India; The Kanchenjunga [1990] 1 Lloyd's Rep. 391. noPanchaud Freres SA v. EtablissementsGeneral Grain Co t19701 1 Lloyd's Rep. 53 at 56. esMackay v. Dick (1SS1)6 App.Cas. 251; Coltey v. OverseasImporters ll921l3 K.B. 302. nuThis paragraph is based on C. M. Schmitthoff, Legal Aspects of Export Sales (3rd ed., Institute of Export, 1978), pp. 14-16.

'WLle looJUIz I9l'U''I'^A I [SS6Il prl oJ rl4ralg uatsSunl'^ptT oJ Suun\cntnuovtl 'g'>I 'gIV qlnos '^ oJ T n^olj ratqraoL4 ralssag I $ 80? I [86I] oJ lDoJ ruaMraCI '^ 'deu s,p,{o11 '862 vs oJ rc t6Z Z t986Il spquaqn aqJ :vs lara$fl,7 ap sp^nN sraluo|lJ uouoS 3ut11 3u1dd1t1g uloJ DaS:EEErc rIg 'U'T'1 , tg86Il pt7 yuvg 3ut113uot13 ry'I '^ pt'I 1117,11 '^ :6I 'U'g ilV I [286I] rasDqJ $od aqJ :pttg ups Qttstoln,,tg)syg alqota?aA puo wlDJ VS alrl 'U''I'4L -snpq J n a)rawwoJ a1nod a31ag-o1ot1 Z lZL1Il o3 ttodutl 2 ttodxg ?t?tros:tI8 le 008 arnpord uoua8tltl'^VS pt7 :liL'J'V rsDNlfl'^ pt7 oJ T uDlV't'1 IZL6I\ptT oJ Suuaytoqtg DoroJ pDrsl'J'V asnoqpooy4:S'da1 s.p,{o11I [016I] oJ utor9 praua1 sruawassqqotg'^ VS saat1 pnoqruDd lserelu Jo osl ete 'DtlD ngt 'SurmolloJ eql '0I 'g') Lw1il p17 asnoH saaq qBlH '^ ptj tsnU Qtadoq uopuol IDruaJ sr ruaqt Jo snorrrpJlsou eqt ilcafqns sn{l uo sesucraplo '^ snorerrnu er" ereqJ 'rzg 'deg s.p,{oy1 I [ZS6I] pt7 (ntsaqcuo74fisuospt^Dq ydg opoacusDld oe 'E6'u'ntdns 'n?untuaqtuDx aqJ osle ees '(tunudotd tunlnt otluot anuat),(pueregtp tcu ot peprJep ,{pappns eq JI quPJ poo3 ur lle lou plno,t reuuLu u qJns ul pa139seq oq,n ,(ged ''pe qlgz) strDrtuoJ ',{rlqJ ees) an:1 sr slruJJo etuls B l"ql uon V'(600-SZ-]OO-SZ sured'(6661 -dunsse peer?e ue uo paloe artuq sarged aql aJaq&\sasue sItLL '(.uollueluoc ,(q 1addo1sa,, ul\ou{ s sr ,{gecruqcal'lJnpuoosnornardKq yeddotsa laddotsaalqetrnbaruor; luaraJJrc.'gr7 racue,(a,ruo399 'surspv 'I pue 'lE te gg 'deg s.p,{o11 I [0t6I] o) ulot1 praua1 G.rcD..pelnqqslpag re^Ii6,, stuaaassrlqDtg '^ VS saraJ! pnDqJuDd ul 'f"I Suruueq tad aas 'sauulcop eleredas puu lcuqslp eru ,(aql Sur4eeds fpculs 1nq delrarro ,{1pnsn ptre petenba ,{puanbar; eJ? seuulJop oltll aseql 86

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:s^\olloJ s? 66'f'T Suruueg fq elqellnba Jo lsql uo ro JoAI?^\Jo euulcop pelulnurJoJs31y\ Jepsl oLII 86'leddotse 'luelue8ueue eql sB uA\oDI euoceq wq pq/y\ uo reqlle pepunoJ sI ^\eIA sIqI 'seer8ure11es eqt sqt oprs? tes fluerllqJ? touuec relles oql luql elquqord sI lI pue 'qluotu auo JoJ lueudlqs JeJep01 rollos Uodxe eql S{se sJelnduoc Jo Je^nq suesJeloue 'aJuelsul JoC 'Slq8u lclr1s slq uo ule8e lslsur pue ecuo l3 pulru slq e8uuqc torruuc ,fued reuuoJ oql leql elqeqord SI ll re..uoplsod sII{ rall? 01 reqlo eql pal lrnpuoc sll ^q suq fged euo,, JI 'es?c 1eql uI 'luereJJlpsI uolllsod eql 'acuetulo;red lculs uo lsrsur ol ecuu$aqJoJfJ"lunlol B ,(laraur sI JnoAuJeql JI 'sergud qloq uo Sulpurq sI luetueeJ8eryreuoql pue los4uoc luur8uo eql Jo suuol aql ,(J"A ol lc?Jluoc erul B sI eJeql 'lnone; eql JoJ unleJ uI uo4sJeplsuoc3 JoJ ',$1ncgltp s{se lcsrluoc aql Jo srruel eql xeler ol pa{se ueeq seq oq^\ fusd eql JI eqt alqereprsuoJesnec lq8Fu epnlpls elqeuoseerslql ^\aIA Jo lulod 1uEe1 ruoJC 'irrlod Sseusnq suowal JoJSII{8uSnl uo ISISuI t{SI^\lou .(?ureH 'seEetuep ol Jo

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98

Acceptanceand Rejection of Goods

If, therefore, in the above example, the buyer, after expiry of one month, is still unwilling to accept delivery of the goods, the seller would be entitled to revert to the original terms of the contract. Goulding J. said in one case3:
"Indeed, the mere extension of the period to a new fixed period would on the authorities have preserved the position that time was of the essence without fresh stipulation to that " effect.

Moreover, if no time limit is provided for the indulgence, the party who has agreed to relax the strict terms can likewise unilaterally notify the other party that the indulgence is over and that the strict terms of the contract shall again apply. Normally, the party who has shown indulgencehas to give the other party notice of reasonable length "for readjustment before he is allowed to enforce his strict rights".4 Such notice is not always essential:it is not required if it is clear from the circumstances that the period of suspension over or that, even is if notice had been given, the other party could not have complied with it. In one case,ta French company bought goods from an English company under an f.o.b. contractwhich provided that the price should be paid in sterling under a banker's letter of credit to be openedin London "within a few weeks". The time for the opening of the credit expired, as the court found, on August 19. There were extensions,and on October 22 the sellers informed the buyers peremptorily that, having regard to the delay in the establishment of the credit, they considered the contract cancelled. Devlin J. held that the peremptory notice of October 22 was sufficient and that the sellers were not obliged to give the buyers further time becauseeven if they had given them, say, a fortnight's notice, the buyers could not have complied with it as they could not obtain transferable sterling from their bank; the legal principle was expressedby the learned judge6 as follows:
"The position of a party who has started out with a contract where time is of the essenceand has allowed the time to go by is, I think, quite clearly laid down in the authorities. He has got to make time of the essenceof the contract again in the normal case, and that means that he has to give notice giving the other side what is a reasonable time in all the circumstances to comply with their obligations. But in my judgment, although that is the ordinary doctrine, the giving of a notice is not always essential."

3 (1973) 26 P.C.R. 89; quoted with approval by Ken L.J. in Nichimen Corporation v. Gatoil OverseasInc |98712 Lloyd's Rep. 46 at 53. a PerLord Tucker inTool ManufacturingCo Ltdv.Tungsten Electric Co Ltd t195511W.L.R.761 at785; SCCMO (London) Ltd v. Sociti Ginirale de Compensation [1956] 1 Lloyd's Rep. 290 at 300. t Etablissements Chainbaur SARLv. Harbormaster Ltd t19551 1 Lloyd's Rep. 303; See also Nichimen Corporation v. Gatoil OverseasInc ll987l2 Lloyd's Rep. 46 (failure to open letter of credit was breach of a condition of the contract of sale and this position was not changed by the sellers granting the buyers indulgence for the opening of the credit). u In the Chainbaux case at 312.

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100

Acceptanceand Rejection of Goods

The Act also providestt a definition of the unpaid seller, who becomessuch: (a) when the whole of the price has not been paid or tendered;or (b) when a bill of exchange or other negotiable instrument has been received as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise. The rights of the unpaid seller may likewise be claimed by an agent of the seller to whom the bill of lading has been indorsed or by a consignor or confirming agent who has himself paid or is directly responsible for the price or who, for other reasons,is in the position of a seller.t2

The unpaid seller's lien

5-015

The unpaid seller can exercise his lien on the sold goods onty if he still has actual possession of them. Where he has delivered them to a carrier for the purpose of transmissionto the buyer, or to the buyer or his agent, the lien on the goods is lost.l3If the goods are still in transit and have not yet been delivered into the possessionof the buyer or his agent authorisedto accept them on his behalf, the question arises whether the unpaid seller can exercise his right of stoppagein transit. This question will be examined in the next section. It will be seen that the conditions on which the Act allows stoppagein transit are very strict. In international sales transactionsthe unpaid seller's lien on the goods plays a relatively minor role. The seller's right of lien is merely a right to retain the goods until the purchase price is paid and is not a right to resell them. He has, however, in certain circumstancessuch a right under the Actta; sometimessuch right is given by mercantile custom, e.g. in the tea trade. The lien cannot be claimed for storage charges incurred when the goods are stored during the buyer's default.ls In the caseof a credit sale, the unpaid seller has no right of lien during the credit period After the expiration of unless,during that period, the buyer becomesinsolvent.16 the credit period he can exercise the lien in any event. The seller is entitled to of the lien even if he is in possession the goods as an agent for the buyer.l7A confirming house, which acts as agent for a principal abroad, may exercise the lien on goods bought on behalf of the principal if he fails to pay the commission or incidental charges.
rrs.38. '2 s.38(2). r 3s . 4 3 . 'a See para. 5-{17. '5 Somesv. British Empire Shipping Co (1860) 30 L.J.Q.B. 229. '6 s.41(1)(c). t 7s . 4 l ( 2 ) .

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r02

Acceptance and Rejection of Goods

The right of stoppagein transit is exercisedby the seller giving notice of his claim to the carrier or the carrier's principal, or by the seller taking actual possessionof the goods if he can do so without breach of the peace. The notice to the carrier's principal, that is the line in whose ships the goods are cdrried, is only effective if given in such time and under such circumstancesthat the prindiligence, can communicateit to his servant cipal, by the exerciseof reasonable in time to prevent a delivery to the buyer.22 or agent The right of stoppagein transit, which originally arose by mercantile custom, gave rise to much litigation before it was cast in its presentform. It is outside the scope of this work to examine the matter exhaustively.Three points however, may be mentionedbriefly. First, delivery of the goods to a carrier or agent, who takes his instructions from the buyer, does not necessarilylead to a loss of the right of stoppage.In connection with that right, section 32(l) of the Act, which has been discussed earher,23 does not apply. If the carrier or agent is merely the buyer's agent for purposes of transmitting the goods, the right of stoppage in transit can still the If, be claimed, provided that the goods are still in the agent's possession. on the hand, the agent is authorised to accept delivery of the goods in accordance other with the terms of the contract of sale and has to dispose of them in compliance with the instructions of the buyer, the right is lost. The courts will generally of incline to the view that the master of the ship obtains possession the goods in his capacity as carrier and not as agent of the buyer to take delivery under the contract of sale, and this applies even where the goods are delivered on a vesselcharteredby him. Thus, where the seller,under an ordinary f.o.b. contract, delivers the goods to the master of the ship, who makes out the bill of lading in "in transit", and the right of stoppagecan the buyer's name, the goods are still or be exercisedby the seller. Where, however, in the course of the shipment,2a after arrival of the goods at the place of destination, the carrier acknowledges"4ffs11s"-[o the buyer or his agent that he holds the goods on his behalf, the transit has come to an end even if the buyer orders the transshipment of the goods to anotherplace.25 Secondly, the right of stoppageis not lost when the bill of lading is made out in the name of the buyer (or his agent), or, if originally made out in the seller's name, is delivered to the buyer. The latter act is, as has been seen,'udecisive for the passing of the property unless the seller has reserved the right of disposal; but these acts are irrelevant for the exercise of the right of stoppage. In fact, that right acquires particular practical importance after the bill of lading has reached the buyer and he has thus obtained the right of disposal of the goods. Thirdly, while normally the unpaid seller's lien or right of stoppagein transit is not affected by a sale or other disposition which the buyer has made with

22s.46(1). 23See ante, para. 4-003. 'o Reddall v. Union-Castle Mail SteamshipCo Ltd (1915) 84 L.J.K.B. 360. 25s.45(3). 'o See ante, para. 4-{06.

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