Bim Kemi Ab v Blackburn Chemicals Ltd. [2002] EWHC 25 (Commercial) (30th January, 2002)

Bim Kemi Ab v Blackburn Chemicals Ltd. [2002] EWHC 25 (Commercial) (30th January, 2002)

A binding contract was made in October 1994 for exclusive supply of BS 470 to BIM KEMI AB in Scandinavia, evidenced by the December 1993 fax initialled by Mr Wallberg. The agreement was not subject to further documentation and was intended to be legally binding. Blackburn breached the contract by refusing supply and...

Source-derived case information.

Citation
[2002] EWHC 25 (Commercial)
Parties
Claimant: BIM KEMI AB; Defendant: BLACKBURN CHEMICALS LIMITED
Jurisdiction
England and Wales
Procedural Posture
Commercial Dispute / Final Judgment on Liability, Quantum and Certain Issues Reserved
Outcome
Judgment for Claimant on liability; quantum and certain issues reserved for further hearing
Legal Topics
Formation of Contract, Termination of Contract, Breach of Contract, Exclusive Supply Agreements, Authority of Agents, Notice Requirements, Repudiation, Restrictive Trade Practices
Contract Law Commercial Law Formation of Contract Termination of Contract Breach of Contract Exclusive Supply Agreements Authority of Agents Notice Requirements +2 more

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Summary, issues, holding and outcome

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Parties

BIM KEMI AB

Claimant

BLACKBURN CHEMICALS LIMITED

Defendant

Procedural Posture

Commercial Dispute / Final Judgment on Liability, Quantum and Certain Issues Reserved

Legal Issues

  1. 1 Whether a binding contract was made in 1994 for exclusive supply of BS 470 to BIM KEMI AB
  2. 2 Whether BIM KEMI AB breached the 1994 or 1984 agreements by selling Tensidef products
  3. 3 Whether any breach was repudiatory

Ratio Decidendi

A binding contract was made in October 1994 for exclusive supply of BS 470 to BIM KEMI AB in Scandinavia, evidenced by the December 1993 fax initialled by Mr Wallberg. The agreement was not subject to further documentation and was intended to be legally binding. Blackburn breached the contract by refusing supply and appointing Chemec. BIM's sales of Tensidef products were not repudiatory breaches. Notice of termination of the 1984 agreement did not terminate the 1994 agreement; proper notice under the 1994 agreement was required.

Court Disposition

Judgment for Claimant on liability; quantum and certain issues reserved for further hearing

Orders

  • Declaration that a binding contract was made in October 1994 for exclusive supply of BS 470 to BIM KEMI AB in Scandinavia
  • Blackburn Chemicals breached the contract by refusing supply and appointing Chemec