TMI Blog1939 (5) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. Until 1933 their business had been confined 1o industrial chemicals. In that year they entered into a contract for the purchase of agricultural chemicals which, it was provided, were to be sold only in certain parts of i he country, the sellers undertaking to debar all their other buyers from selling the same chemicals in those parts of the country. For the purposes of this contract the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid by way of compensation for sterilisation of a capital asset. It was further argued that the appellants had, by the contract, established for themselves, not only a source of supply, but also a market; that the sale of agricultural chemicals was a new and profitable field; and that in view of the sellers' agreement not to supply competitors, the contract was a capital asset so that the paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chemicals, and they can still do so. The contract was made in the ordinary course of their business, although in a new field, and the exclusion of competition is an ordinary incident of such contracts and not, as it seems to me, analogous to a pooling agreement. It is clear that the dictum of Rowlatt, J., in Chibbett v. Robinson Sons (132 L. T., at p. 31 ; 9 Tax Cas., at p. 61) is too widely exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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