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Sime Darby Future Tradings

This is the first case where the court examined and interpreted contract terms which have been adopted from the Palm Oil Refiners Association of Malaysia (‘PORAM’) standard form of contract. The court inter alia, held that the word ‘party’ in a ‘first in, first out’ provision may refer to several companies within the same group.

The court also considered the method for computation of loss in the event of default and the meaning of ‘date of default’ under the PORAM standard form of contract.

The court further took note of the industry practice on how the market price of the RBDPO is to be determined when there is no trading on a particular day.

 

 
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