Contract Constituted By Performance

TTMI Sarl v Statoil ASA [2011] EWHC 1150

TTMI instructed a firm of ship brokers to sub-charter its vessel to Statoil. In the "recap email" (which is an email commonly used to confirm the previously agreed terms of a charter), the shipbrokers erroneously gave the name of TTMI's parent company as the owner, instead of TTMI. The voyage was fully performed, but Statoil delivered the ship back late, so TTMI made a demurrage claim. The claim was referred to an arbitrator who struck out the claim on the grounds that the wrong naming of the owner meant there was no contract (and thus the arbitrator had no authority to act). TTMI appealed.

The High Court (Beatson J) allowed the appeal and remitted the case back to the arbitrator. He agreed that the recap email did not, on the evidence, bring a contract into effect. Nevertheless, a contract had come into existence by performance of the parties. It was relevant that TTMI had instructed the vessel to take on Statoil's cargo;