The “STX Mumbai” – Court of Appeal (Sundaresh Menon CJ, Chao Hick Tin and Andrew Phang Boon Leong JJA, and Judith Prakash and Quentin Loh JJ) [2015] SGCA 35 – 15 July 2015

Contract – Anticipatory breach – Bunkers supplied to vessel – Bunker supplier concerned about insolvency of shipowning group and demanding payment before contractual due date – Payment not made – Bunker supplier arresting vessel for anticipatory breach – Whether doctrine of anticipatory breach applicable to executed contracts – Whether insolvency capable of amounting to repudiatory breach

The appellant supplied bunkers to the respondent’s vessel STX Mumbai on terms which required payment to be made within 30 days. After the bunkers had been supplied, but three days before the contractual payment date, the appellant demanded immediate payment by the close of the same business day.