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SALEFORM 2012 Clause 14: no loss of bargain for failure to give NOR by cancelling date—Orion Shipping v Great Asia Maritime, English Commercial Court: make delivery date a condition

Published on: 30 August 2024

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Orion Shipping and Trading Ltd v Great Asia Maritime Ltd [2024] EWHC 2075 (Comm)

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Norwegian Sale Form 2012 (‘SALEFORM 2012’), issued by the Norwegian Shipbrokers’ Association and BIMCO, is a memorandum of agreement for the sale and purchase of ships and is widely regarded as the industry benchmark across multiple shipping jurisdictions. First introduced in 1956, it was updated in 1966, 1983, 1987 and 1993, with the current version published in 2012. English law is one of three standard governing law options offered in Clause 16 of SALEFORM 2012. As a result, the English courts have often been required to interpret the legal effect of various provisions of SALEFORM 2012 throughout its different versions. This ruling confirms that loss of bargain damages are not recoverable under Clause 14 of SALEFORM 2012 where the seller fails to tender a notice of readiness by the contractual cancellation date—even where that omission is attributable to established negligence...

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