Neon Shipping Inc v Foreign Economic 7 Technical Coporation Co. of China and another

Shipping – Contract. The Commercial Court, in dismissing the claimant's appeal, held that arbitrators had not erred in construing a shipbuilding contract to mean that a 12 month time-bar provision applied so as to exclude all claims not notified within the requisite notice period, including the claimant's claim. Bifurcation of an article in the contract so as to create two category of claims, as contended by the claimant, was wholly artificial. The court further held that s 14(3) of the Sale of Goods Act 1979 applied to a shipbuilding contract in any case where goods had been ordered for their normal purpose.

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