Nord Naphtha Ltd v New Stream Trading AG [2021] EWCA Civ 1829 (30 November 2021)

Nord Naphtha Ltd v New Stream Trading AG [2021] EWCA Civ 1829 (30 November 2021)

Clause 14.5 of the contract creates an obligation for the seller to repay the advance payment to the buyer in the event of non-delivery due to force majeure; the Comfort Letter does not displace this obligation and is commercially worthless in the relevant circumstances.

Citation
[2021] EWCA Civ 1829
Parties
Claimant/respondent: Nord Naphtha Limited; Defendant/appellant: New Stream Trading AG
Jurisdiction
England and Wales
Judgment Date
30 November 2021
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Contract Interpretation, Force Majeure, Advance Payment Repayment
Commercial Law Contract Interpretation Force Majeure Advance Payment Repayment

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 8 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Nord Naphtha Limited

Claimant/respondent

New Stream Trading AG

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether clause 14.5 of the contract creates an obligation for the seller to repay the advance payment in the event of non-delivery due to force majeure
  2. 2 Whether the Comfort Letter displaces the seller's repayment obligation

Ratio Decidendi

Clause 14.5 of the contract creates an obligation for the seller to repay the advance payment to the buyer in the event of non-delivery due to force majeure; the Comfort Letter does not displace this obligation and is commercially worthless in the relevant circumstances.

Court Disposition

Appeal dismissed

Orders

  • Summary judgment in favour of Nord Naphtha Limited upheld
  • New Stream Trading AG is obliged to repay the advance payment to Nord Naphtha Limited