OK Petroleum AB v Vitol Energy SA (The Chemical Venture and The Jade)
Jurisdiction | England & Wales |
Judgment Date | 05 May 1995 |
Date | 05 May 1995 |
Court | Queen's Bench Division |
Queen's Bench Division
Before Mr Justice Colman
Contract - incorporating contract - term cannot be included
Where an incorporated contract did not exist when the incorporating contract was entered into, and could not be presumed by the parties to the latter to contain any specific wording or terms, the established approach to construction was that general words of incorporation would not normally be construed as wide enough to incorporate any provision from the other contract, unless that provision was part of the subject matter of that contract and not merely ancillary to it.
Mr Justice Colman so held in a reserved judgment in the Queen's Bench Division when deciding in the plaintiff's favour a preliminary issue as to whether the plaintiff's claim was time-barred.
Mr Christopher Smith for the plaintiff; Mr Simon Kverndal for the defendant.
MR JUSTICE COLMAN said that by two contracts of sale the plaintiff, OK Petroleum AB, had sold quantities of gasoline to the defendant, Vitol Energy SA, who carried on business in Geneva. The contracts were subject to English law and jurisdiction.
In order to perform the contracts of sale the plaintiff chartered two vessels. There was a time-bar...
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...for an independent demurrage liability, not an indemnity. 41 The last case which it is necessary to mention in any detail is OK Petroleum AB v. Vitol Energy SA [1995] 2 Ll.R. 160, where two sale contracts each provided for laytime consisting of a specified number of hours SHINC, and (in the......
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