Compagnie Commerciale Sucres et Denrees v. Czarnikow Ltd. (The Naxos) - House of Lords (Lord Bridge, Lord Brandon, Lord Ackner, Lord Oliver and Lord Jauncey) - 11 October 1990

Sale of sugar f.o.b. - Whether sellers must have goods immediately ready for loading on vessel’s arrival

Czarnikow contracted to purchase from Compagnie Commerciale a quantity of white crystal sugar on f.o.b. stowed terms. Clause 7 of the sale contract provided that the sellers were to deliver to one or more vessels presenting ready to load during May/June 1986 on the buyers giving 14 days’ notice of vessel(s) expected readiness to load. The contract incorporated the Rules relating to Contracts of the Refined Sugar Association of London. Rule 14 provided (1) that the sellers should have the sugar ready to be delivered to the buyer at anytime within the contract period, and (2) that the buyer, having given reasonable notice, should be entitled to call for delivery between the first and last working day inclusive of the period of delivery.