Sharp Corp Ltd v Viterra BV [2023] EWCA Civ 7 – 11 January 2023 (Asplin LJ, Popplewell LJ, Phillips LJ)

Further to the buyers’ default payments under 2 sale contracts on c&f “free out” terms, the sellers managed to resell the peas and lentils cargoes to another company and were awarded damages by an arbitration award. The buyers appealed on the measure of damages under clause 25.c of GAFTA24. The first instance judge found no error of law in the tribunal’s decision based on the market price in Vancouver and the market rate of freight for carriage to the discharge port of Mundra. The CA held that the value of the goods fell to be measured by reference to a notional sale of the goods in bulk ex warehouse Mundra on the relevant date of default, but with risk passing to the buyer at the date of contract. The awards were thus remitted to the tribunal for reconsideration.