World Trade Corporation Ltd v C Czarnikow Sugar Ltd - QBD (Com Ct) (Colman J) - 18 October 2004

Arbitration - Sale of sugar - Allegation that buyers failed to open letter of credit prior to shipment - Whether buyers or sellers in repudiatory breach - Whether sellers mitigated their loss - Whether arbitrators' award should be remitted for serious irregularity

Czarnikow sold to World Trade Corporation 10,000 mt of sugar on CIFFO East African port terms. Under the contract, the buyers had to pay a US$350,000 deposit to stand as security for their performance. The sellers alleged that the buyers were in repudiatory breach of contract by failing to open a letter of credit by the due date.