ABSTRACT
An Australian seller and a Malaysian buyer concluded a contract for the sale of approximately 30,000 metric tonnes plus/minus 10% of scrap steel at the price of $164 per metric tonne C.N. F.F.O. Kemaman Malaysia. According to the written contract between the parties, shipment was to be made from any Australian port during July 1996 and payment was to be made by irrevocable letter of credit. As of July 1996, the buyer indicated that it would not issue the letter of credit. At this time, the seller had already agreed to charge a vessel. On 8 August, the seller asked the buyer to confirm by noon on 9 August as to whether it was prepared to honour the contract in question. As the buyer was not able to give its answer before the executive committee meeting, the seller terminated the contract on that same day.
