R. Pagnan & Filli v. Lorico Lebanese Organisation for International Commerce - Q.B.D. (Com.Ct.) (Lloyd J.) - 15 May 1981

Sale of goods - C.i.f. - GAFTA default clause - Measure of damages

By a contract dated 25 September 1978 on GAFTA Form 41 the plaintiffs sold to the defendants 8,500 tons of Argentine maize already onboard the S.S. Caloric at a price of $119 per metric ton c.i.f. Beirut. The Caloric arrived off Beirut on 2 October 1978 but the port had closed since 28 September because of renewed outbreak of civil war. The plaintiff sellers, who were also the time charterers of the Caloric were paying charter rates of $6,000 a day whereas demurrage under the sale contract, when payable, was only $5,000 a day. On 16 October therefore the plaintiffs ordered the vessel to sail for Italy and on the following day re-sold the maize c.i.f. Genoa. The defendants thereupon looked for replacement goods in order to fulfill sub-contracts which they had previously entered into. The lowest price at which they could purchase replacement maize was $149 per ton.