Jiangsu Guoxin Corporation Ltd v Precious Shipping Public Co Ltd – QBD (Comm Ct) (Butcher J) [2020] EWHC 1030 (Comm) – 30 April 2020

Contract – Shipbuilding contract – Buyer cancelling contracts on ground of excessive delay by shipbuilder in delivering two of a series of 14 vessels – Seller not operating any contractual machinery for extending delivery dates – Seller contending that delay was caused by buyer’s wrongful rejection of earlier vessels – Whether seller entitled to extend delivery dates – Whether “prevention principle” applied

In 2013 the appellant shipbuilder (the seller) entered into contracts with the respondent buyer, on amended SAJ forms, whereby the seller was to design and construct a series of 14 bulk carriers in China. After the first two hulls, 09B and 10B, were delivered, the seller tendered hulls 17B, 18B, 19B and 20B, but they were rejected by the buyer.