- Sale of goods—ascertaining the parties’ intentions in determining when title to goods passes (Euro-Asian Oil SA v Credit Suisse AG)
- What are the practical implications of this case?
- What was the background?
- Decision at first instance
- What did the court decide?
- Case details
Commercial analysis: The Court of Appeal has affirmed that warranties as to good title in a letter of indemnity (LOI) remained enforceable against a bank where a contract for sale and delivery of goods had been correctly characterised as one providing for delivery upon the presentation of the LOI, notwithstanding the existence of a historic ‘carousel’ arrangement between the seller and purchaser relating to the cargo. The case provides an insight into the court’s approach to ascertaining the parties’ intentions for the purpose of determining when title to goods passes under a sale of goods contract. The facts also provide a timely reminder to banks of the risks of counter-signing LOIs in the course of providing trade finance. Written by Mitchell Hayden-Cook, second-six pupil at Selborne Chambers.
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