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 [2014] 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.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

  • Panel reviews

    Panel reviews 2014: The chosen ones

    Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all

  • training

    Accutrainee: Revolution postponed

    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.

View more analysis from The Lawyer


One Bishops Square
E1 6AD

Turnover (£m): 1,234.30
No. of lawyers: 2,194 (UK 200)
Jurisdiction: UK
No. of offices: 11
No. of qualified lawyers: 369 (International 50)
No. of partners: 81