Exxonmobil Sales and Supply Corporation v Texaco Ltd.

Exxonmobil Sales and Supply Corporation v Texaco Ltd.

Texaco had no real prospect of establishing the existence of an express or implied term or usage requiring retention of samples, as such a term was excluded by the contract's entire agreement clause. The independent inspector's determination was final and binding. Clause 20 did not exclude Exxonmobil's claim for damages under section 50 of the Sale of Goods Act 1979.

Parties
Claimant: Exxonmobil Sales and Supply Corporation; Defendant: Texaco Limited
Jurisdiction
England and Wales
Judgment Date
01 August 2003
Procedural Posture
Commercial / Summary Judgment Application
Outcome
Summary judgment granted for claimant; permission to defend refused.
Legal Topics
Sale of Goods, Damages, Summary Judgment, Entire Agreement Clauses, Implied Terms, Usage or Custom
Contract Law Commercial Law Sale of Goods Damages Summary Judgment Entire Agreement Clauses Implied Terms Usage or Custom

Case Brief

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Parties

Exxonmobil Sales and Supply Corporation

Claimant

Texaco Limited

Defendant

Procedural Posture

Commercial / Summary Judgment Application

Legal Issues

  1. 1 Whether Texaco was entitled to reject the cargo for being off-specification
  2. 2 Whether the determination of the independent inspector was final and binding
  3. 3 Whether an express or implied term or usage required retention of samples

Ratio Decidendi

Texaco had no real prospect of establishing the existence of an express or implied term or usage requiring retention of samples, as such a term was excluded by the contract's entire agreement clause. The independent inspector's determination was final and binding. Clause 20 did not exclude Exxonmobil's claim for damages under section 50 of the Sale of Goods Act 1979.

Court Disposition

Summary judgment granted for claimant; permission to defend refused.

Orders

  • Declaration granted that clause 20 does not exclude the claimed damages under section 50 of the Sale of Goods Act 1979.
  • Judgment for Exxonmobil for demurrage in the sum of US$60,100 plus interest.