Glencore Energy UK Ltd v Cirrus Oil Services Ltd [2014] EWHC 87 (Comm) (24 January 2014)

Glencore Energy UK Ltd v Cirrus Oil Services Ltd [2014] EWHC 87 (Comm) (24 January 2014)

A binding contract was concluded between Glencore and Cirrus Oil by the acceptance of a firm offer via email on 4th April 2012. The buyer was objectively identified as Cirrus Oil Services Ltd. The contract was not induced by misrepresentation. Cirrus Oil repudiated the contract, entitling Glencore to damages assessed as the difference between the contract price and the market value at the time of delivery. The BP General Terms and Conditions did not preclude recovery of this measure of damages.

Citation
[2014] EWHC 87 (Comm)
Parties
Claimant: Glencore Energy UK Ltd; Defendant: Cirrus Oil Services Ltd
Jurisdiction
England and Wales
Judgment Date
24 January 2014
Procedural Posture
Commercial Contract Dispute / High Court Trial, Judgment
Outcome
Judgment for the claimant (Glencore).
Legal Topics
Formation of Contract, Repudiation, Damages for Breach of Contract, Identification of Contracting Party, Interpretation of Commercial Correspondence
Contract Law Commercial Law Formation of Contract Repudiation Damages for Breach of Contract Identification of Contracting Party Interpretation of Commercial Correspondence

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Parties

Glencore Energy UK Ltd

Claimant

Cirrus Oil Services Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / High Court Trial, Judgment

Legal Issues

  1. 1 Whether a binding contract was concluded between Glencore and Cirrus Oil on 3rd/4th April 2012
  2. 2 Whether the buyer was properly identified in the contract
  3. 3 Whether the contract was induced by misrepresentation

Ratio Decidendi

A binding contract was concluded between Glencore and Cirrus Oil by the acceptance of a firm offer via email on 4th April 2012. The buyer was objectively identified as Cirrus Oil Services Ltd. The contract was not induced by misrepresentation. Cirrus Oil repudiated the contract, entitling Glencore to damages assessed as the difference between the contract price and the market value at the time of delivery. The BP General Terms and Conditions did not preclude recovery of this measure of damages.

Court Disposition

Judgment for the claimant (Glencore).

Orders

  • Declaration that a binding contract was concluded between Glencore and Cirrus Oil on 4th April 2012.
  • Damages awarded to Glencore for repudiation, to be assessed as the difference between contract and market value at the relevant date.