Soufflet Negoce SA v Bunge SA [2010] EWCA Civ 1102 (13 October 2010)

Soufflet Negoce SA v Bunge SA [2010] EWCA Civ 1102 (13 October 2010)

Under GAFTA 49, the seller's obligation to load is triggered by the presentation of the vessel at the loading port within the delivery period in a state where it is physically and legally possible to load, not by the technical requirements of a valid Notice of Readiness under charterparty law. The risk of loading into unclean holds is borne by the buyer, and the seller cannot refuse to load on that basis.

Citation
[2010] EWCA Civ 1102
Parties
Appellant/sellers: Soufflet Negoce S. A.; Respondent/buyers: Bunge S. A.
Jurisdiction
England and Wales
Judgment Date
13 October 2010
Procedural Posture
Commercial Contract Appeal / Appeal From Queen's Bench Division, Commercial Court
Outcome
Appeal dismissed
Legal Topics
FOB Contracts, Delivery Obligations, GAFTA 49 Interpretation, Notice of Readiness, Demurrage and Laytime
Commercial Law Contract Law International Trade FOB Contracts Delivery Obligations GAFTA 49 Interpretation Notice of Readiness Demurrage and Laytime

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 3 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Soufflet Negoce S. A.

Appellant/sellers

Bunge S. A.

Respondent/buyers

Procedural Posture

Commercial Contract Appeal / Appeal From Queen's Bench Division, Commercial Court

Legal Issues

  1. 1 Whether under GAFTA 49 an FOB seller is obliged to load goods if the buyer's vessel is not ready to load due to unclean holds within the delivery period
  2. 2 Whether the requirement for the vessel to be 'in readiness to load' incorporates the technical rules of Notice of Readiness from charterparty law into the sale contract

Ratio Decidendi

Under GAFTA 49, the seller's obligation to load is triggered by the presentation of the vessel at the loading port within the delivery period in a state where it is physically and legally possible to load, not by the technical requirements of a valid Notice of Readiness under charterparty law. The risk of loading into unclean holds is borne by the buyer, and the seller cannot refuse to load on that basis.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; judgment of David Steel J and GAFTA Board of Appeal affirmed