[1989] 1 Lloyd’s Rep. 451

Stephen Kenny was involved in this matter. At first instance the judge (Leggatt J) held that buyers could reject a cargo of oil sold under a “cif delivered” contract on grounds of short-shipment. The Court of Appeal, reversing, held that the buyers were precluded from relying on this point by a “without prejudice” agreement, which it construed as representing that the point would not be taken.

Sale of goods (c. & f.) – Rejection -Short delivery – Buyers accepted vessel nominated by sellers – Vessel loaded less than contractual quantity – Vessel struck by exocet missile – Buyers rejected goods – Whether title and risk passed to buyers on acceptance of nominated vessel – Whether buyers entitled to reject goods.