Kolmar Group AG v Traxpo Enterprises Pvt Ltd – QBD (Com Ct)(Christopher Clarke J) – 1 February 2010

Tort – Economic duress – Intimidation – Contract for sale of methanol FOB – Market price of methanol increasing subsequent to contract -Sellers refusing to ship part cargo unless contract price increased – Buyers reluctantly agreeing to pay higher price -Whether buyers entitled to restitution on basis of economic duress

On 27 August 2007 the claimant (“Kolmar”) agreed to buy and the defendant (“Traxpo”) agreed to sell (a) 15,000 mt methanol +/-5% at Buyer’s option at $255 per mt and (b) an optional 2-3,000 mts of cargo +/-5% in Buyer’s option at $265 per mt; in each case FOB Kandla for shipment within September 2007. Payment was to be at sight against a letter of credit. The contract contained provision for laytime and demurrage, and it incorporated Incoterms 2000. Kolmar wanted the methanol in order to sell it to Methanex, an important customer in the USA.