CTI Group Inc v Transclear SA [2008] EWCA Civ 856 (22 July 2008)

CTI Group Inc v Transclear SA [2008] EWCA Civ 856 (22 July 2008)

The contract was not frustrated because the sellers bore the risk of supplier failure; the refusal of suppliers to supply due to commercial pressure did not constitute a supervening event rendering performance impossible or fundamentally different. The sellers had no binding contract with suppliers and performance remained physically and legally possible. No implied term could override the express obligation to deliver.

Citation
[2008] EWCA Civ 856
Parties
Claimant/respondent: CTI Group Inc.; Defendant/appellant: Transclear S. A.
Jurisdiction
England and Wales
Judgment Date
22 July 2008
Procedural Posture
Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Frustration of Contract, Sale of Goods, Implied Terms, Risk Allocation in Contracts
Contract Law Commercial Law Frustration of Contract Sale of Goods Implied Terms Risk Allocation in Contracts

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Parties

CTI Group Inc.

Claimant/respondent

Transclear S. A.

Defendant/appellant

Procedural Posture

Appeal From Arbitration Award (commercial Court, Queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the contract for sale of cement was frustrated by the suppliers' refusal to supply due to third-party commercial pressure
  2. 2 Whether the sellers could rely on frustration or an implied term to avoid liability for non-delivery

Ratio Decidendi

The contract was not frustrated because the sellers bore the risk of supplier failure; the refusal of suppliers to supply due to commercial pressure did not constitute a supervening event rendering performance impossible or fundamentally different. The sellers had no binding contract with suppliers and performance remained physically and legally possible. No implied term could override the express obligation to deliver.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Transclear S. A. is dismissed.