Sale-of-goods exclusion clauses: don’t miss out on a bargain
By Fleur Turrington
It is crucial to cover the full range of potential losses in exclusion clauses. We consider exclusion clauses in sale-of-goods contracts in light of the recent Commercial Court decision of Glencore Energy Ltd v Cirrus Oil Services.
Where a buyer refuses to accept goods under a contract, the seller has the right to claim damages. According to the Sale of Goods Act 1979, if there is an available market at the relevant time for the goods in question, the measure of damages will usually be treated as the difference between the price under the contract and the market price at the time of the non-acceptance.
In other words, if the contract price was the same as the general market price, then the seller will not be viewed as suffering any loss — he could simply sell the goods to another buyer at the same price and would not be out of pocket. However, if the contract price was higher than the market price, then the seller has missed out on the opportunity of selling the goods at the higher price, and will be entitled to be compensated for this ‘loss of a bargain’…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
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
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
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.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Ambiguities in SME law must be eliminated
So how will deals work in the future?
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…