Vinergy International (Pvt) Ltd v Richmond Mercantile Ltd FZC – QBD (Comm Ct) (Teare J) [2016] EWHC 525 (Comm) – 15 March 2016

Contract – Long-term agreement for exclusive supply of bitumen – Contract entitling either party to terminate for other party’s breach on service of notice requiring breach to be remedied within specified period – Supplier terminating agreement for repudiatory breach at common law without serving contractual notice – Whether termination lawful – Whether time of payment of invoice of the essence – Whether supplier’s damages should be assessed at nil.

In August 2008 Vinergy entered into a contract with Richmond for the supply of bitumen by Richmond to Vinergy for an extendable term of 10 years. Clause 2.2 provided that Vinergy should exclusively purchase its entire bitumen import requirements from Richmond, although clause 2.3 provided that where Vinergy received an offer to supply bulk bitumen at a better price than was on offer from Richmond, Richmond would purchase the bitumen from the third party source and would supply it directly to Vinergy at an agreed uplift of US$10 per mt.