PEC Ltd v Thai Maparn Trading Co Ltd – QBD (Com Ct) (Hamblen J) – 13 December 2011

Sale of goods (fob) – Delivery – Buyers failing to present vessel to lift goods within contractual delivery period – Buyers claiming to have given notice of 21 day extension of delivery period pursuant to clause 7 of GAFTA 120 – Whether notices valid to extend delivery period

The claimant buyers and the defendant sellers concluded an FOB contract for the sale of 22,000 mt of Thai parboiled long grain rice. The contractual shipment period was “During April – 07 May 2008 with min 10 working days of pre-advice of vessel arrival.” The contract incorporated GAFTA Form No 120, clause 7 of which provided that the buyer might serve notice claiming an extension of the delivery period by an additional period of up to 21 days. Any such notice had to be served not later than the next business day following the last day of the delivery period.