LP 33/2016 The final decision of the RES COGITANS

The Supreme Court has just handed down its decision in the RES COGITANS.  The Court has upheld the decision of the Court of Appeal holding that the contract for the sale of bunkers these circumstances is a “sui generis” contract (i.e. one that is of its own type).

According to the Sale of Goods Act a “sale of goods” is the transfer of property in exchange for consideration called the price.  On the true construction of the bunker supply contract in question the use of the bunkers was permitted before the transfer of property.  Therefore the contract could not be a sale of goods within the definition set out in the Sale of Goods Act.