BP Oil International, Limited v. Empresa Estatal Petroleos de Ecuador
United States Court of Appeals for the Fifth Circuit
332 F.3d 333 (2003)
BP Oil International, Ltd. (BP) (plaintiff) entered an agreement with Empresa Estatal Petroleos de Ecuador (PetroEcuador) (defendant) for the delivery of gasoline CFR (cost and freight) to La Libertad, Ecuador. Per the agreement, the gasoline was to have no more than three milligrams per 100 milliliters of gum content when tested before shipment. The gasoline was tested prior to shipment and passed the three-milligram test. The gasoline was tested again at the destination port and failed the test. PetroEcuador would not accept delivery, and BP sold the gasoline to another buyer at a loss. BP brought suit for breach of contract in federal district court. The district court applied Ecuadorian law and granted summary judgment for PetroEcuador. BP appealed, arguing that CFR meant that the risk of damage to the gasoline passed to PetroEcuador once the gasoline was loaded onto a ship for delivery. The Court of Appeals for the Fifth Circuit disagreed with the district court and applied the United Nations Convention on Contracts for the International Sale of Goods (CISG), not Ecuadorian law.
Rule of Law
Holding and Reasoning (Smith, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.