*PST Energy 7 Shipping LLC and another v OW Bunker Malta Ltd and another

Sale of goods – Passing of property. The Supreme Court, in dismissing the appeal, held that arbitrators had correctly concluded that a contract for bunkers of fuel oil and gasoil had not been one of sale within s 2 of the Sale of Goods Act 1979, with the result that the appellants could have no possible defence under s 49 of the Act to the claim for the price. Further, it was not subject to any implied term, regarding performance by the first respondent (or its parent company) of any supply contract higher up the chain, though it was, no doubt, subject to an implied promise by the first respondent that the first respondent was entitled to supply them to the appellants on terms permitting their use for the propulsion of the vessel before payment.

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