Sale of contaminated sunflower seed oil — measure of damages

A Federation of Oils, Seeds and Fats Associations (FOSFA) tribunal considered a claim by Saipol as FOB buyers for contamination of sunflower seed oil. The sale contract was for 3,000 MT sunflower seed oil, which was shipped as part of a total cargo of 16,600 MT. Saipol were buyers of all the cargo from five different sellers. Before shipment, all five consignments had been commingled. On discharge, it was discovered that the entire cargo was contaminated.

The buyers claimed the difference in value between sound and contaminated cargo, and also consequential losses…

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