This is an extract of our Sky Petroleum V. Vip Petroleum document, which we sell as part of our Commercial Remedies BCL Notes collection written by the top tier of Oxford students.
The following is a more accessble plain text extract of the PDF sample above, taken from our Commercial Remedies BCL Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
V. VIP PETROLEUM
FACTS This is a motion for an injunction brought by the plaintiff company, Sky Petroleum Ltd., as buyer under a contract dated March 11, 1970, made between the defendant company, VIP Petroleum Ltd., as seller of the one part and the plaintiffs of the other part. That contract was to operate for a period of ten years, subject to certain qualifications, and thereafter on an annual basis unless terminated by either party giving to the other not less than three months' written notice to that effect. It was a contract at fixed prices, subject to certain provisions which I need not now mention. Further, the contract obliged the plaintiffs --- and this is an important point --- to take their entire requirement of motor gasoline and diesel fuel under the contract, with certain stipulated minimum yearly quantities. After the making of the agreement, it is common knowledge that the terms of trade in the market for petroleum and its different products changed very considerably, and I have little doubt that the contract is now disadvantageous to the defendants. After a long correspondence, the defendants, by telegrams dated November 15 and 16, 1973, have purported to terminate the contract under a clause therein providing for termination by the defendants if the plaintiffs fail to conform with any of the terms of the bargain. What is alleged is that the plaintiffs have exceeded the credit provisions of the contract and have persistently been, and now are, indebted to the defendants in larger amounts than were provided for. HOLDING Specific Performance - Plaintiff cannot obtain petrol from elsewhere What I have to decide is whether any injunction should be granted to protect the plaintiffs in the meantime. There is trade evidence that the plaintiffs have no great prospect of finding any alternative source of supply for the filling stations which constitute their business. The defendants have indicated their willingness to continue to supply the plaintiffs, but only at prices which, according to the plaintiffs' evidence, would not be serious prices from a commercial point of view. There is, in my judgment, so far as I can make out on the evidence before me, a serious danger that unless the court interferes at this stage the plaintiffs will be
Buy the full version of these notes or essay plans and more in our Commercial Remedies BCL Notes.