Cancellation of shipbuilding contracts and the availability of injunctive relief

Shipbuilding and sale – Sellers purporting to cancel – Injunctive relief

Edward Yang Liu, Legal Assistant, Reed Smith Richards Butler

The facts

By a shipbuilding contract dated December 2006, the claimant buyers agreed to purchase and the defendant sellers agreed to construct and sell a 79,000 ton dwt bulk carrier with a sale price of US$49.8m payable in five instalments.