Choil Trading SA v Sahara Energy Resources Ltd [2010]
EWHC 374 (Comm)
Background Facts
S was the seller and C the buyer under an FOB Port Harcourt sale
of naphtha. The contract provided "Quality: PHRC
naphtha quality" and the specs referred to in the quality
clause were taken from an analysis of a sample provided by S's
seller, Port Harcourt Refinery Company ("PHRC"). In
pre-contract exchanges between the parties, the contractual
significance of which was disputed, S stated that the product was
to be sold "as is".
C then on-sold the cargo to P. The contract between C and P
provided as part of the specification "Mtbe mg/kg 50ppm
max". MTBE is Methyl Tertiair Buthyl Ether, a man-made
substance which is not a by-product of the production of naphtha.
That on-sale was on terms that if the cargo did not meet the
specification, P could renegotiate the price and C had no
obligation if the cargo was off spec.
