Golden Ocean Group Ltd v Salgaocar Mining Industries PVT Ltd and Anr – Court of Appeal (Rix and Tomlinson LJJ and Sir Mark Waller) – 9 March 2012

Contract – Guarantee – Whether only enforceable where contract contained in a single document signed by the guarantor – Statute of Frauds 1677 – Whether guarantee contemplated execution of further document – Whether guarantee “signed” – Proper law of warranty of authority.

On 8 January 2008 the claimant (“Golden Ocean”) offered to charter to the defendant (“SMI”) or an account to be guaranteed by SMI, a newbuilding with an option to purchase at the end of the charter period. SMI made a counter offer stating “a/c Trustworth Pte Limited Singapore fully guaranteed by [SMI]”. That offer was expressed to be subject to various matters including owners’ board approval. Trustworth was a Singapore company, and the chartering arm of SMI. SMI was an Indian company.