Court Of Appeal Confirms Buyer Can Get Damages For Seller’s Failure To Deliver Vessel By Agreed Date

To put it at its simplest, the question in this case was – could the Buyer of the “Lila Lisbon”, having exercised their right to cancel due to the Sellers failure to give a Notice of Readiness by the cancelling date, recover damages for their loss of bargain under clause 14 of the 2012 NSF (Norwegian Saleform)?

The NSF 2012 is a very common sale contract (or MOA as it is more commonly known) used in the majority of sale and purchase transactions. The matter was referred to London arbitration. The Tribunal held that the Buyer could recover loss of bargain damages, which it assessed at US$1.85M that being the increased market value of the vessel between the date of the contract and the date by which a notice of readiness should have been given (market was rising).

The Sellers appealed on the basis that the Buyers should not be awarded damages for their loss of bargain. Dias J agreed. The Buyers appealed to the Court of Appeal.

Published by BDM.

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