Humboldt Shipping Co Ltd v Zalco Marine Services Pte Ltd (The “Anna Spiratou” - High Court (Amarjeet JC) - 8 November 1997

Contract for sale of ship - Whether concluded by telex exchanges - Whether buyers in repudiatory breach - Measure of damages

On 23 February 1996 the defendants’ shipping brokers sent to the plaintiffs’ broker a telex offering to buy the vessel Anna Spiratou at a price of US$4,700,000. Paragraph 2 of the offer contained a term that the buyers would lodge 10% deposit into a “joint account at sellers nominated bank within three working days of signing MOA on fax”. Paragraph 3 contained a term that the balance of the purchase price was to be paid to the plaintiffs’ nominated account on delivery and in exchange for the defendants’ required delivery documentation. The offer was made on the basis that the ship, which was then on time charter, be free of charter on the date of delivery.