Choil Trading SA v. Sahara Energy Resources LTD ( The “Prem Mala”) – QBD (Comm. Ct.), 26 Feb 2010

SALES CONTRACT — FOB SALE — CONTAMINATED CARGO — DAMAGES — HEDGING LOSSES FLOW NATURALLY FROM BREACH — SALE OF GOODS ACT 1979 — Buyer Award

Given that the quality of naphtha originating from the Port Harcourt Refining Company (PHRC) in Nigeria was variable, the naphtha was sold “as is” and “PHRC naphtha quality”. Thus, the Court ruled that when the naphtha was found to be contaminated with MTBE, Buyer was not obliged to accept the cargo given that it contained a contaminate not normally present in naphtha produced by PHRC.