CURIOUS LOSS OF BARGAIN UNDER THE NORWEGIAN SALEFORM: The Lila Lisbon and Clause 14 NSF 2012
Helmsman’s Director, Tang Chong Jun, presented a paper at ICMA 2026 on a key question for the ship sale and purchase (SNP) market: when are buyers under the Norwegian Saleform 2012 entitled to “loss of bargain” damages on non‑delivery?
The paper examines the English court decisions arising out of the capesize bulk carrier Lila Lisbon, where buyers, Great Asia Maritime Limited, pursued LMAA arbitration and appeals to the Commercial Court and Court of Appeal, with a further appeal to the UK Supreme Court expected in mid‑2026.
Using The Lila Lisbon [2024] EWHC 2075 (Comm) as the focal point, the paper considers:
• The nature and limits of a seller’s obligations to deliver or tender notice of readiness by the cancelling date under NSF 2012
• Whether, absent repudiatory breach, buyers can claim “loss of bargain” damages following cancellation or termination under Clause 14
• How these findings sit with market expectations shaped by a century of use of the Norwegian Saleform and the relative rarity of fully contested SNP disputes
• Practical implications for parties’ strategies in SNP transactions, including decisions on termination, security and the pursuit of damages claims
Set against the backdrop of the Norwegian Saleform’s longstanding role in providing commercial certainty and balanced risk allocation, The Lila Lisbon litigation raises important questions for both sellers and buyers on where risk truly lies when the vessel is not delivered.
For further information on these issues, please feel free to contact the author at: tang.chongjun@helmsmanlaw.com.
This publication is provided for general information purposes only and does not constitute legal or professional advice. It does not purport to be comprehensive or address every aspect of the matters discussed. While we strive to ensure the accuracy of the information at the time of publication, we make no representations or warranties as to its accuracy, completeness, or suitability for any particular purpose. You should seek specific legal or professional advice before taking any action based on the contents of this publication. We do not accept any liability for any loss or damage arising from any reliance placed on this publication or its contents. No lawyer-client relationship is created by this publication.
We stand ready to help you capture the opportunities and navigate unchartered territory. To find out more, please feel free to contact us:
