Damages for non-acceptance of goods not covered by exclusion clause covering ‘loss of profits’
In the case of Glencore Energy UK Ltd v Cirrus Oil Services Ltd  EWHC 87 (Comm), 24 January 2014, the High Court has clarified that a claim for damages for non-acceptance of goods under section 50 of the Sale of Goods Act 1979 is not a claim for loss of profits but rather for loss of the bargain the seller would have benefited from under the contract.
Where parties to a contract wish to exclude claims for damages under section 50, the contract must contain clear and specific wording to that effect.
The claimant, Glencore Energy UK, and the defendant, Cirrus Oil Services, had entered into a contract on 4 April 2012 for the sale of crude oil. When Cirrus refused to accept the oil, Glencore successfully brought a claim for damages under section 50(2) and (3) of the Sale of Goods Act 1979 for Cirrus’s repudiation of the contract. The key issue of interest in this case is the question of whether the seller’s claim was excluded by the exclusion wording in the contract…
Click on the link below to read the rest of the Allen & Overy briefing.
News from Allen & Overy
News from The Lawyer
Briefings from Allen & Overy
This year is expected to be a bumper year for pension risk transfer in the UK.
The OFAC has imposed a new set of ‘sectoral sanctions’ against two Russian energy firms and two Russian banks pursuant to Executive Order 13662.
Analysis from The Lawyer
At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.