Excluding liability for loss of profit and loss of bargain

Section 50(1) of the Sale of Goods Act 1979 provides that where a buyer wrongfully neglects or refuses to accept and pay for goods, the seller may bring an action for damages for non-acceptance. How such damages are to be calculated is set out in section 50(2) of the 1979 act, which states that ‘the measure of damages is the estimated loss directly and naturally resulting, in the ordinary course of events, from the buyer’s breach of contract’. Section 50(3) elaborates further, providing that where there is an available market for the goods in question, the measure of damages is prima facie to be ascertained by the difference between the contract price and the market price at the time when the goods ought to have been accepted.

In Glencore Energy UK Ltd v Cirrus Oil Services Ltd, Glencore agreed to supply crude oil to Cirrus. In turn, Glencore entered into a contract to purchase the oil from its supplier, Socar Trading SA. Cirrus refused to accept the oil on the basis that it was blended. Glencore in turn terminated its contract with Socar and brought an action for damages against Cirrus under section 50…

Click on the link below to read the rest of the Walker Morris 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.

Briefings from Walker Morris

View more briefings from Walker Morris

Analysis from The Lawyer

View more analysis from The Lawyer


Kings Court
12 King Street

Turnover (£m): 42.50
No. of lawyers: 188