UNCITRAL CLOUT Case 720
Netherlands Arbitration Institute
NAI Case No. 2319 (2002)
- Written by Rich Walter, JD
Facts
Dutch sellers (plaintiffs) contracted to deliver installments of crude-oil condensate to a British buyer (defendant). In June 1998, after discovering unacceptably high levels of mercury in some installments, the buyer abruptly informed the sellers that the buyer would not accept delivery of that month’s installment. Prior to this notification, the buyer had discussed the possibility of suspending acceptance only with a third party who was neither the sellers’ express nor implied agent. A few days later, the buyer informed the sellers that the buyer would refuse all future deliveries until the mercury problem could be remediated. The sellers, who absorbed large losses in reselling the contaminated condensates to other customers, filed a complaint with the Netherlands Arbitration Institute.
Rule of Law
Issue
Holding and Reasoning ()
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