Moeve Trading SAU v Mael Trading FZ LLC [2026] EWHC 17 (Comm)

Moeve sold gasoline and gasoil to Mael on FOB Algeciras terms, with payment due 60 days after shipment under confirmed letters of credit (LCs). The cargo was shipped and discharged, but the issuing bank refused payment. Moeve sued for the price under S.49 Sale of Goods Act 1979. The Buyer argued that arranging the LCs discharged its payment obligation and raised a counterclaim for demurrage and delay. The Court rejected those arguments, holding that title had passed, the Buyer had received the cargo, the LCs were not payment, and the counterclaim was time-barred and excluded. The Seller obtained summary judgment, and the Court refused the Buyer’s application for a stay of execution.

Read the full judgment here.