[2015]DLSC5617 • January 28, 2015 • Supreme Court •
GLENCORE A.G vs. VOLTA ALUMINUM COMPANY LIMITED
The plaintiff, Glencore A.G., sued VALCO claiming that a binding contract had arisen from email correspondence and conduct for the sale of 26,250 metric tons of alumina, and that VALCO wrongfully refused to accept delivery. Glencore sought declarations of contract and breach, general damages, and special damages of US$6,918,750 said to have resulted from the fall in alumina prices after VALCO’s repudiation. The documentary record showed an offer on 19 August 2008, acceptance on 20 August 2008, subsequent discussions on vessel nomination, letters of credit, and later repudiation by VALCO on 10 September 2008. Glencore thereafter diverted the Brazilian alumina cargo to TALCO and later attempted to rely on market-price evidence and section 48 of the Sale of Goods Act, 1962 (Act 137) to justify enhanced damages. Portion of judgment: under “BRIEF FACTS” and “PLAINTIFF’S CLAIMS IN THE TRIAL HIGH COURT,” where the court sets out the chronology from 19 August 2008 to 28 October 2008 and the reliefs claimed.
read moreJONES DOTSE JSC:- It is provided in sections 1 (1), 47, 48 (1) and (2) of the Sale of Goods Act, 1962 (Act 137) as follows: “1(1) a contract for the sale of goods is a contract by which the seller agrees to transfer the property in the goods to the buyer for a consideration called the price, consisting wholly or partly of money.” 47. Damages for non-acceptance (1) Where the buyer wrongfully neglects or refuses to accept and pay for the goods in accordance with the terms of the contract, the seller may maintain an action against the buyer for damages for non-acceptance. (2) In a contract for the sale of goods to be delivered by instalments, (a) if each instalment is to be separately paid for, subsection (1) shall apply to each instalment separately, but where the buyer has by words or conduct shown an intention to repudiate the contract the seller may, if the seller accepts the repudiation, maintain an action for damages for non-acceptance in respect of the goods; (b) ...