Geofizika DD v MMB International Ltd (The “Green Island”) – Court of Appeal (Lord Neuberger of Abbotsbury MR, Sir Nicholas Wall P and Thomas LJ) – 28 April 2010

Sale of goods CIP – Incoterms 2000 - Seller contracting with freight forwarder to arrange sea carriage from England to Libya – Goods lost at sea after being carried on deck - Whether seller in breach of obligation to contract “on usual terms” - Whether failure to procure valid contract of insurance – Whether freight forwarder negligent in giving under deck warranty – Whether breach caused buyers’ loss

In October 2006 the claimant buyers agreed to buy from the defendant sellers three Land Rover ambulances for £74,952 “CIP [carriage and insurance paid] Tripoli”. The contract incorporated Incoterms 2000 which provided that the seller was to contract “on usual terms” for the carriage of the goods, and was also to obtain cargo insurance on the terms of the Institute Cargo Clauses (C) entitling the buyer to claim directly from the insurer. Cover on the terms of ICC (C) did not cover goods being washed overboard.