What consideration does the Master of the Rolls have given to a contract between a disc disc dealer and a record dealer?

Saskatchewan, Canada


The following excerpt is from Berliner Gram-o-phone Co. v. Scythes & Co., 1916 CanLII 197 (SK QB):

The facts of the case at bar, in my opinion, bring it squarely within the decision of the Master of the Rolls in Gravely v. Barnard. The plaintiffs have an undoubted right to sell their disc machines and records on such terms and under such conditions as to them seemed best. That prior to the signing of the agreement of January 19th, 1914, the defendants had been getting the discount which, under that agreement, would be theirs by right is immaterial. The plaintiffs had a right to say to the defendants: “You must sign the agreement for the exclusive handling of our goods, or we will terminate our dealings with you at once.”They did not say that, because there was no occasion to say it; the defendants signed without any demur and the plaintiffs continued supplying them with the goods at the agreed discount. The consideration for the execution of the agreement by the defendants was, to use the language of the Master of the Rolls, “that the connection between them would not be terminated there and then, ”but that the plaintiffs would continue to do business with them on the” terms specified. I am, therefore, of opinion, that there was a sufficient consideration to support the agreement.

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