King Crude Carriers SA v Ridgebury November LLC

Subject Matter

CONTRACT — Terms — Breach — Buyers failing to pay deposit for purchase of tankers — Escrow accounts consequently unable to be taken out — Sellers terminating agreements and seeking to recover full amount of deposits — Scope of Mackay v Dick principle — Whether deposits to be claimed in debt or in damages

[2024] EWCA Civ 719; [2025] KB 311; [2025] 2 WLR 181; [2025] 1 All ER 179; [2025] 1 All ER (Comm) 289; [2024] 2 Lloyd's Rep 140; [2024] WLR(D) 298, CA

CONTRACT — Breach — Debt — Contract for sale of oil tankers — Buyer required to pay deposit into escrow account and provide escrow holders with necessary documentation — Deposit never paid because of buyer’s failure to provide documentation — Provision of documentation condition precedent to accrual of buyer’s obligation to pay deposit — Whether buyer liable to seller in debt for failure to pay deposit — Whether buyer precluded from relying on non-fulfilment of condition precedent to avoid obligation in debt — Whether condition precedent deemed to have been fulfilled

[2024] EWCA Civ 719; [2025] KB 311; [2025] 2 WLR 181; [2025] 1 All ER 179; [2025] 1 All ER (Comm) 289; [2024] 2 Lloyd's Rep 140; [2024] WLR(D) 298, CA

CONTRACT — Breach — Debt — Contract for sale of oil tankers — Buyer required to pay deposit into escrow account and provide escrow holders with necessary documentation — Provision of documentation condition precedent to accrual of buyer’s obligation to pay deposit — Deposit never paid because of buyer’s failure to provide documentation — Whether buyer liable to seller in debt for failure to pay deposit — Whether buyer precluded from relying on non-fulfilment of condition precedent to avoid obligation in debt — Whether condition precedent deemed to have been fulfilled

[2024] EWCA Civ 719; [2025] KB 311; [2025] 2 WLR 181; [2025] 1 All ER 179; [2025] 1 All ER (Comm) 289; [2024] 2 Lloyd's Rep 140; [2024] WLR(D) 298, CA

CONTRACT — Breach — Debt — Contract for sale of oil tanker — Buyer required to pay deposit into escrow account and provide escrow holder with necessary documentation — Opening of account condition precedent to accrual of buyer’s obligation to pay deposit — Deposit never paid because of buyer’s failure to provide documentation — Whether buyer liable to seller in debt for failure to pay deposit — Whether condition precedent deemed to have been fulfilled

[2025] UKSC 39; [2025] 3 WLR 707; [2025] WLR(D) 570, SC(E)

CONTRACT — Breach — Debt — Contract for sale of oil tanker — Buyer required to pay deposit into escrow account and provide escrow holder with necessary documentation — Account never opened and deposit never paid because of buyer’s failure to provide documentation — Whether buyer liable to seller in debt for amount of deposit — Whether opening of account condition precedent to accrual of debt — Whether buyer entitled to rely on non-fulfilment of such condition precedent when caused by its breach of contract

[2025] UKSC 39; [2025] 3 WLR 707; [2025] WLR(D) 570, SC(E)

Appellate History

Commentary

Gatehouse Chambers
English contract law recognises doctrine of ‘deemed fulfilment’ of a condition precedent Case comment