The Griffon: the deposit or compensation?
The recent decision of Mr Justice Teare in Griffon Shipping LLC v Firodi Shipping Ltd (the Griffon)  EWHC 593 (Comm) heralds a departure from the previously held view that under clause 13 of the standard form Norwegian Sale Form 1993, where a buyer fails to pay the deposit under a memorandum of agreement, an innocent seller’s claim is limited to compensation for its losses. In this case, the court concluded that a seller is in fact entitled to claim the deposit in such circumstances.
Griffon Shipping LLC, as Sellers, entered into a memorandum of agreement (MOA) with Firodi Shipping Ltd, as Buyers, for the purchase of the MV Griffon. The MOA was on a standard Norwegian Sale Form 1993 (NSF 93). Pursuant to clause 2 of the MOA, a deposit of 10%, (US$2,156,000) was due to be paid within three banking days of signature of the MOA. The MOA was signed but the deposit was not paid within the three banking days. On the following day, the Sellers accepted the Buyers’ conduct as a repudiation of the MOA and/or cancelled the MOA…
If you are registered and logged in to the site, click on the link below to read the rest of the Ince & Co briefing. If not, please register or sign in with your details below.
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 Ince & Co
News from The Lawyer
Briefings from Ince & Co
The International Maritime Organisation (IMO) has produced a draft Polar Code to cover all aspects of shipping in the Arctic and Antarctic areas.
Court of Appeal considers whether dishonouring LC bank has title to sue under indorsed bill of lading
The Court of Appeal has given judgment in a case that has implications for all traders who rely on letters of credit for payment security in their sale and purchase transactions.