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Lloyd's Maritime Law Newsletter

Soon Hua Seng & Co Ltd v Glencore Grain Ltd (The “Flying Falcon”) - QBD (Com Ct)(Mance J) - 17 January 1996

C & F sale - Whether contract required that bills of lading should be on liner terms - Whether any such requirement was to be classified as a condition precedent or as an innominate term - Whether buyers justified in rejecting documents

The appellant sellers entered into a rice contract for the sale of Thai white broken rice in bulk to the respondent buyers. The contract was headed “C & F full outturn weight”. The contract incorporated, with certain amendments and modifications, the printed terms of the LRBA form of contract. The price provision, as amended, provided that the price was to be “US$[205] per 1000 kilos, & Cost and Freight PTO”. The reference to “PTO” was to a typewritten page providing:

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