Aden Refinery Company v Gunvor SA

Aden Refinery Company v Gunvor SA

The contract price does not move with delivery date; Energen did not have authority to bind Gunvor to a variation; ARC breached contract by failing to pay for full cargo; Gunvor entitled to counterclaims for market loss, extra freight, and demurrage, offsetting ARC's credit.

Parties
Claimant: Aden Refinery Company; Defendant: Gunvor SA
Jurisdiction
England and Wales
Judgment Date
18 December 2019
Procedural Posture
Commercial Contract Dispute / Final Judgment
Outcome
ARC's claim for repayment dismissed; Gunvor's counterclaims allowed subject to net balance clarification.
Legal Topics
Contract Interpretation, Authority of Agent, Counterclaims, Damages, Interest
Commercial Law Contract Interpretation Authority of Agent Counterclaims Damages Interest

Case Brief

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Parties

Aden Refinery Company

Claimant

Gunvor SA

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment

Legal Issues

  1. 1 Does the contract price move with delivery date?
  2. 2 Did Energen have authority to bind Gunvor to a contract variation?
  3. 3 Is ARC entitled to repayment for alleged overpayment?

Ratio Decidendi

The contract price does not move with delivery date; Energen did not have authority to bind Gunvor to a variation; ARC breached contract by failing to pay for full cargo; Gunvor entitled to counterclaims for market loss, extra freight, and demurrage, offsetting ARC's credit.

Court Disposition

ARC's claim for repayment dismissed; Gunvor's counterclaims allowed subject to net balance clarification.

Orders

  • ARC not entitled to repayment of $4,475,482.79.
  • Gunvor entitled to market loss of $418,034.94, extra freight of $150,000, and demurrage of $158,781.95.