Bim Kemi AB v Blackburn Chemicals Ltd.

Bim Kemi AB v Blackburn Chemicals Ltd.

Bim/Cellkem's conduct in developing and marketing its own silicone-based defoamers during the subsistence of the 1994 agreement constituted repudiatory breach, entitling Blackburn to terminate the agreement by refusing further supplies in December 1998.

Parties
Respondent: Bim Kemi AB; Appellant: Blackburn Chemicals Ltd
Jurisdiction
England and Wales
Judgment Date
13 February 2003
Procedural Posture
Civil Appeal (commercial) / Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Formation of Contract, Repudiatory Breach, Exclusive Distribution Agreements, Variation of Contract, Remedies for Breach
Contract Law Commercial Law Formation of Contract Repudiatory Breach Exclusive Distribution Agreements Variation of Contract Remedies for Breach

Case Brief

Summary, issues, holding and outcome

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Parties

Bim Kemi AB

Respondent

Blackburn Chemicals Ltd

Appellant

Procedural Posture

Civil Appeal (commercial) / Appeal Judgment

Legal Issues

  1. 1 Whether a binding contract was made in 1994 in the terms of the December 1993 fax for the exclusive supply to Bim by Blackburn of BS 470 for sale in Scandinavia
  2. 2 Whether Bim was in breach of that contract and/or the earlier 1984 Agreement by reason of its (or Cellkem's) sales of Tensidef products in Scandinavia between 1995 and 1998
  3. 3 If Bim was in breach, whether the breaches were repudiatory

Ratio Decidendi

Bim/Cellkem's conduct in developing and marketing its own silicone-based defoamers during the subsistence of the 1994 agreement constituted repudiatory breach, entitling Blackburn to terminate the agreement by refusing further supplies in December 1998.

Court Disposition

Appeal allowed

Orders

  • Bim was in repudiatory breach as at December 1998; Blackburn was entitled to accept the repudiation by refusing to supply BS 470.
  • Argument on costs adjourned.