An important decision for the ship sale and purchase market has confirmed that buyers entering into a standard form Memorandum of Agreement (MOA) (on Norwegian Sale Form (NSF) 1993 terms and similar, e.g., the 2012 terms) do so in the knowledge that they may be liable for the amount of the (unpaid) deposit, if the MOA is then terminated as a result of the buyers’ breach. Revision to the standard form MOA will be necessary in order to avoid such possible result.

On 21 March 2013, Mr Justice Teare handed down judgment in Griffon Shipping LLC v Firodi Shipping Ltd [2013] EWHC 593, on the claimant Sellers’ successful appeal (under section 69 of the Arbitration Act 1996) of an arbitration award dated 9 July 2012. Reed Smith acted for the Sellers.

For further details, please see the Reed Smith Client Alert by Charles Weller, Philip Rymer, Robert Wilkins and Michael Wood.