Aden Refinery Company v Gunvor SA [2019]

Aden Refinery Company v Gunvor SA [2019] EWHC 3555 - 18 December 2019 (Knowles J CBE)

“Gunvor sold 60,000mt gasoil to ARC, for delivery July 2014, with payment (due before delivery) calculated by reference to a contemporaneous Platts index. The parties agreed to delay delivery to September, but without adjusting the pricing clause. Gunvor invoiced at the July price but ARC paid at the lower September rate. Gunvor delivered a quantity less than 60,000 mt, commensurate with the July price, selling the balance to a third party. Gunvor sought damages arising out of ARC's failure to pay the full price. The Court rejected ARC's arguments that the price index automatically moved with delivery date, or that the contract was so varied, and held that the contract was for "pre-payment" at the July rates in the absence of any clear link to delivery date.”

Antonino Cordopatri - Christina Voulgaraki
E. G. Arghyrakis & Co.
15th January 2020