BUNGE SA V NIDERA BV

[2013] EWHC 84 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 29 January 2013

Sale of goods - Wrongful repudiation - GAFTA Clauses- Construction of GAFTA Prohibition Clause and Default Clause - Parties agreeing by sale contract to export wheat from Russia - Ban of export of wheat - Effect of GAFTA Prohibition Clause - Anticipatory repudiatory breach - Liability - Quantum of damages

On 5 August 2010, the same day that a vessel was nominated to take delivery of the quantity of wheat that the parties had agreed to export from Russia, the Russian government published a decision to ban the export of wheat. Sellers considered the contract thereby automatically cancelled according to the GAFTA Prohibition Clause. Buyers disputed this, arguing that a causal connection was required and that sellers were in repudiatory breach. The GAFTA Appeals Board agreed with buyers that the export ban did not give rise to automatic cancellation and that it could have been lifted before the expiry of the delivery period, enabling performance. Sellers appealed.