Eximenco Handels A.G. v. Partrederiet Oro Chief & Anr. (The Oro Chief) - Q.B.D. (Com. Ct.) (Staughton J.) - 10 May 1983

Agreement to sell vessel under Norwegian Sale Form - Whether sellers lawfully cancelled

By a contract on the Norwegian Sale Form dated 17 November 1982 the owners of the vessel Oro Chief agreed to sell her to the buyers for $8 million. The latest time for delivery and payment under that contract was extended from time to time, and ultimately became, as the sellers contended, 16 00 on 6 April 1983. Since by that time the buyers had not tendered the purchase price in exchange for the documents which the contract required to be handed over on completion, the sellers purported to cancel the contract, and concluded a second contract for the sale of the vessel to another buyer for the sum of $8.2 million. The question before the Court was whether the sellers had lawfully cancelled the agreement.