FAL Oil Co Ltd and Anr v Petronas Trading Corporation Sdn Bhd - QBD (Com Ct)(Morison J) - 10 October 2003

Sale of goods - Oil cargo received during ship to ship transfer - Oil found to be contaminated with water when discharged from receiving vessel - Whether contamination occurred on transferring vessel or receiving vessel - Whether purchasers of oil liable to pay demurrage under sale contract

The claimants contracted with the defendants ("Petco") for the sale of a cargo of high viscosity oil on c & f terms. There were two issues in this case. The first related to liability for the contamination of the oil by water. The second related to demurrage.