Entitled Or Not Entitled: Court Of Appeal Restores Industry Understanding On Loss Of Bargain Damages

The Court of Appeal1 has held that under the Norwegian Saleform 2012, where the buyers lawfully terminate the memorandum of agreement pursuant to Clause 14 (Sellers’ Default), due to the sellers’ proven negligence in failing to exercise reasonable due diligence to deliver the vessel by the cancelling date, the buyers are entitled to make a recovery for loss of bargain damages under Clause 14 – without needing to establish a separate repudiatory breach.

This significant decision represents the restoration of a long-established industry understanding on loss of bargain damages and will be of comfort to buyers of second-hand vessels.

Published by Holman Fenwick Willan

OceanGen Media is not affiliated, associated, endorsed by, or in any way connected with the publisher or rights holder of this content. The publisher’s logo is used solely for the purpose of identifying the original source of the material. Its inclusion does not imply any partnership, sponsorship, approval, or involvement by the publisher of OceanGen Media, nor does it grant OceanGen Media any rights, claims, or interests in the content. OceanGen Media did not participate in the creation, editing, or production of the content and asserts no ownership or control over it.

By completing this form, you may be redirected to the publisher’s official website or platform to access or purchase the original content.