Palmer v Carey [1926] UKPCHCA 1

OF AUSTRALIA. 545

payment into Court to the credit of this cause." H.C. ov A. Save as aforesaid decree affirmed and appeal 195-196.

dismissed with costs. MayNarp

v Goope.

Solicitors for the appellant, Throsby, Young & Stellway, Wagga =— Vagga, by Dowling, Tayler & Macdonald.

Solicitors for the respondent Goode, Walsh & Blair, Wagga Wagga, McDonell & Moffitt.

BL. ie [PRIVY COUNCIL] -ALMER . i # . P A . APPELLANT; AND ts ete Gs uc zo, EXRSPONDENT,

ON APPEAL FROM THE HIGH COURT.

nl fonstruction—Agreement to lend money to trader—Repayment out of proceeds of goods—Security, lien or charge of lender over goods—Equitable _, PRivy

assignment. Comet ig 1926.

By an agreement in writing made in New South Wales between the respondent and a person carrying on business as an indentor, which recited that the latter _ required additional capital to enable him to extend his business and that the respondent had agreed to advance various sums of money, it was agreed that the borrower should from time to time purchase goods for the purpose 'of the business and the respondent should advance the purchase-money therefor, which would be applied exclusively tosuch purchase. In consideration therefor the borrower agreed (inter alia) to sell the goods as soon as possible after the purchase thereof and to pay the proceeds of sale forthwith into the credit of the respondent at a certain bank; to attend diligently to the business and to the sale of the goods; and to keep proper books of account

April 19.

* Present—Viscount Cave L.C., Lord Parmoor, Lord Wrenbury, Lord Blanes- and Lord Darling.

VOL. XXXVI. 35

Privy

Councit.

1926. a) PALMER v Carry.

HIGH COURT (1926.

and permit the respondent to have free access to and to inspect such books, It was further agreed that during the continuance of the agreement a monthly account should be taken by the borrower and furnished to the respondent of the purchases and sales and showing the net gross profits derived therefrom, and that the respondent, after deducting the amount so advanced by him together with one-third of the gross profits, should pay to the borrower the remaining two-thirds of the gross profits for his own use and benefit absolutely; and that the agreement should not in any way constitute or be deemed to constitute a partnership between the parties, and should be terminable at any time at the option of the respondent.