Plaintiffs contracted the bailee to convey their goods and allowed them to sub-bail under any terms.
The bailee sub-bailed to Defendant with an exclusive jurisdiction to Taiwan.
When Defendantโs ship sunk, Plaintiff wanted to sue them in Hong Kong.
Privy Council ruled that the action in HK would be stayed since Plaintiff was bound by the terms of the sub-bailment.
A sub-bailee owes the same duty to take care as does a bailee for reward and when sub-bailee is in breach of this, the bailor can pursue him directly.
However, where sub-bailment agreement is agreed to by bailor, the terms of it can be invoked by the sub-bailee and bailor is bound by them.
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