CASE NOTE: Inco Europe Ltd & Ors v First Choice Distribution & Ors
I. INTRODUCTION
This case bears a great importance on
II. THE CASE
A. FACTS Inco Europe was a dealer in non-ferrous metals traded on the London Metal Exchange. It had previously done business with Steinweg, owner of an approved LME warehouse for metals being traded on the exchange. The two have been in business together for at least three years preceding this collaboration. Inco Europe and Steinweg usually dealt on the terms that Steinweg was a forwarder subjecting to the FENEX terms of the Netherlands Association for Forwarding and Logistics including an arbitration clause. Taking into consideration these facts, on 23 December Miss Janet Povey of Inco Europe contacted Steinweg requesting them to …show more content…
FACTS The main question arising from this case should be: Is there a contract to begin with? The answer can be found in usages. Implied contracts in the business world is a common practice. In recent decades, the obligation to perform a contract in good faith has gained an important role in the law of contract performance. Flexibility in contracts can be provided by leaving a decision affecting the parties’ rights and obligations to the discretion to only one of them. The party with discretion is permitted to act in a variety of ways if the act is done for a contractually permitted reason. It is in the interest of businessmen to deal without contracts and perform agreements. Both parties depend on each other’s services due to a certain reliability in their long business relationship. The same situation applies to Inco Europe and Steinweg. In regard of the FENEX arbitration clause in this agreement, it does not meet the requirements of the Dutch Arbitration Act - art. 1021 DCCP which states that the arbitration agreement must be proven by an instrument in writing, also by electronic means. This article can also represent a blockage to the court as the clarity requirements are
I. INTRODUCTION
This case bears a great importance on
II. THE CASE
A. FACTS Inco Europe was a dealer in non-ferrous metals traded on the London Metal Exchange. It had previously done business with Steinweg, owner of an approved LME warehouse for metals being traded on the exchange. The two have been in business together for at least three years preceding this collaboration. Inco Europe and Steinweg usually dealt on the terms that Steinweg was a forwarder subjecting to the FENEX terms of the Netherlands Association for Forwarding and Logistics including an arbitration clause. Taking into consideration these facts, on 23 December Miss Janet Povey of Inco Europe contacted Steinweg requesting them to …show more content…
FACTS The main question arising from this case should be: Is there a contract to begin with? The answer can be found in usages. Implied contracts in the business world is a common practice. In recent decades, the obligation to perform a contract in good faith has gained an important role in the law of contract performance. Flexibility in contracts can be provided by leaving a decision affecting the parties’ rights and obligations to the discretion to only one of them. The party with discretion is permitted to act in a variety of ways if the act is done for a contractually permitted reason. It is in the interest of businessmen to deal without contracts and perform agreements. Both parties depend on each other’s services due to a certain reliability in their long business relationship. The same situation applies to Inco Europe and Steinweg. In regard of the FENEX arbitration clause in this agreement, it does not meet the requirements of the Dutch Arbitration Act - art. 1021 DCCP which states that the arbitration agreement must be proven by an instrument in writing, also by electronic means. This article can also represent a blockage to the court as the clarity requirements are