Glencore Energy UK Ltd v Cirrus Oil Services Ltd

Glencore Energy UK Ltd v Cirrus Oil Services Ltd

A binding contract was concluded by the exchange of emails on 3rd/4th April 2012 between Glencore and Cirrus Oil for the sale of Ebok crude oil. The buyer was objectively identified as Cirrus Oil Services Ltd. Cirrus Oil repudiated the contract. Damages are to be assessed as the difference between the contract price and the market value at the time of breach. Clause 32.1 of the BP General Terms and Conditions does not exclude this measure of damages, as it is not a claim for loss of anticipated profits but for loss of bargain under the Sale of Goods Act.

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 / Judgment After Trial
Outcome
Claim allowed
Legal Topics
Formation of Contract, Repudiation, Damages for Non Acceptance, Interpretation of Exclusion Clauses
Contract Law Commercial Law Sale of Goods Formation of Contract Repudiation Damages for Non Acceptance Interpretation of Exclusion Clauses

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Parties

Glencore Energy UK Ltd

Claimant

Cirrus Oil Services Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

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

Ratio Decidendi

A binding contract was concluded by the exchange of emails on 3rd/4th April 2012 between Glencore and Cirrus Oil for the sale of Ebok crude oil. The buyer was objectively identified as Cirrus Oil Services Ltd. Cirrus Oil repudiated the contract. Damages are to be assessed as the difference between the contract price and the market value at the time of breach. Clause 32.1 of the BP General Terms and Conditions does not exclude this measure of damages, as it is not a claim for loss of anticipated profits but for loss of bargain under the Sale of Goods Act.

Court Disposition

Claim allowed

Orders

  • Judgment for Glencore against Cirrus Oil in the sum of $2,500,470
  • Interest to run from 30th August 2012 at US 3 month Libor plus 1%