London Arbitration 7/11

(2011) 828 LMLN 1

Sale of ship - Norwegian Saleform - Purchase price to be paid "in cash" - Buyers not making payment of price by delivery date - Whether implied term that "advance deposit" method of payment would be used - Whether sellers failed to nominate bank account - Whether sellers presented compliant documents - Whether error in name of buyer in delivery documentation constituted compliance by sellers - Whether deposit forfeited to sellers or recoverable by buyers

The claimant buyers contracted with the respondent sellers to purchase the sellers’ vessel for US$26.55 million. The contract was on the Norwegian Saleform 1993 Memorandum of Agreement (“the MoA”). The name of the buyers shown on the MoA was mis-spelt in that one letter was incorrect. The discrepancy in the buyers’ name gave rise to some difficulties, as detailed below.