The Gafta Default Clause

The Gafta default clause: a closer focus on mitigation

Sharp Corp Ltd -v- Viterra BV (formerly known as Glencore Agriculture BV) [2024] UKSC 14

In this case, the Supreme Court has decided the proper measure of damages under the Gafta default clause. Whilst the facts of the case as presented are a little unusual, the Supreme Court's conclusion provides guidance as to how damages are to be assessed generally in cases of default under standard Gafta contracts. The Court's focus is as much on the principle of mitigation as it is on the compensatory principle.

The background facts

In summary, the chronology is as follows: