Sotiros Shipping Inc. v. Sameiet Solholt (The Solholt) - Court of Appeal (Sir John Donaldson M.R., Dillon L.J. & Sir George Baker) - 11 March 1983

Sale of ship - Whether buyers failed to mitigate loss after lawful cancellation

The defendant sellers agreed to sell their vessel Solholt to the plaintiff buyers for $5 million. The contract was on the Norwegian Sale Form and called for delivery not later than 31 August 1979, failing which the buyers were to have a right of cancellation. The sellers wished to use the vessel for as long as possible before delivery but miscalculated the last voyage and were unable to deliver her until a day or two later. The buyers exercised their contractual right of cancellation on 3 September 1979.