Best Foods, Inc. v. Mitsubishi Shoji Kaisha, Ltd.

The Best Foods, Inc., purchased certain peanut oil from the defendant Mitsubishi. The contract of sale provided that the seller was to furnish the tank cars and make delivery f. o. b. tank car, Pacific Coast in bond. The contract contained also a proviso reading, “ No claim shall be made on the seller * * * for any perils or accidents of transportation by sea or land, or for any alleged shortage or loss of or damage to goods, unless resulting through seller’s lack of good faith.” During transit the oil leaked out of the tank cars. The action is brought in, the alternative under the provisions…