Sotiros Shipping Inc. & Anr. v. Sameret Solholt (The Solholt) - Q.B.D. (Com.Ct.) (Staughton J.) - 18 June 1981

Norwegian Sale Form - Whether buyers entitled to damages - Whether buyers mitigated their loss - Interest payable on return of deposit

By a contract on the Norwegian Sale Form dated 7 May 1979 the defendants agreed to sell their vessel Solholt to the plaintiffs for $5m, delivery to take place not later than 31 August 1979. A deposit of 10% of the purchase price was payable to Hambro’s Bank. At the time of the agreement the Solholt was already under charter to another company. The sellers believed there would be sufficient time between completion of her current employment and the delivery date under the sale contract for Solholt to carry a cargo on her way to the delivery port. Unfortunately, through no particular fault of the sellers, this voyage was delayed with the result that Solholt was not tendered for delivery until 3 September 1979. The buyers thereupon exercised their right to cancel and recovered their deposit with interest. The value of the vessel on 3 September was $5½m, namely $½m more than the contract price. However, the buyers still did not want to purchase her even though delivery was only three days late.