London Arbitration 3/11

(2011) 825 LMLN 2

Sale of ship - Damages - Buyers obtaining injunction restraining sellers from dealing with vessel - Injunction preventing delivery of ship - Buyers held to be in repudiatory breach of MacKay v Dick implied term of MOA - Buyers forfeiting deposit - Sellers claiming damages for loss of charterparty earnings - Causation - Whether claim to be assessed on basis that buyers would have taken delivery of vessel - Whether credit to be given for deposit - Whether sellers to give credit for difference between contract price and market value of ship

In 2004 the parties entered into a Memorandum of Agreement (“MOA”) for the purchase of a 20 year old bulk carrier at a price of US$7,171,500. The cancelling date was 30 April 2004. Pursuant to the terms of the MOA the buyers paid a 10% deposit in the sum of US$717,150.