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Sky Petroleum v VIP Petroleum

[1974] 1 WLR 576

Case summary last updated at 04/01/2020 14:52 by the Oxbridge Notes in-house law team.

Judgement for the case Sky Petroleum v VIP Petroleum

Claimant would buy all its petrol from the defendant who agreed to supply all the claimant’s needs. The defendants purported to terminate the contract at a time when supplies were limited and an interim injunction was granted to restrain the withholding of supplies. The judge accepted that this amounted to specific performance of a contract to sell chattels although they were not specific or ascertained. Nonetheless, his decision was based on the inadequacy of damages as a remedy, as an injunction was the sole means of keeping the claimant’s business going. I.e. a “grave threat to business” is an alternative for the adequacy requirements mentioned above. 

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