Griffon Shipping LLC v Firodi Shipping Ltd (The “Griffon”) – Court of Appeal (Sir Brian Leveson P, Tomlinson and McFarlane LJJ) [2013] EWCA Civ 1567 – 10 December 2013

Sale of ship – Deposit – Sale agreement providing for payment of 10 per cent deposit by buyers – Buyers failing to pay deposit – Sellers terminating contract for accepted repudiation and/or pursuant to contractual cancellation clause – Whether sellers entitled to recover deposit as a debt or confined to damages/compensation in lesser amount

On 28 April 2010 the claimant sellers agreed to sell the vessel Griffon to the defendant buyers at a price of US$22 million less 2 per cent commission. On 1 May 2010 the Memorandum of Agreement (MOA) based upon the Norwegian Saleform 1993 (NSF 1993) was signed.