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26 June 2026 / Isuru Devendra
Issue: 8167 / Categories: Features , Sanctions , Commercial , Contract , International , Transport
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Stuck on the dock no longer?

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© Getty images
When does sanctions risk justify refusing to perform a contract? Isuru Devendra reviews a Court of Appeal ruling that will be welcomed by shipowners navigating uncertain circumstances
  • A Court of Appeal ruling has clarified that a party relying on a sanctions clause need only have made a reasonable determination of sanctions risk, rather than a likely sanctions breach.
  • The decision will be welcomed by shipowners and commercial parties operating in fast-moving sectors where information about sanctioned persons and corporate control may be incomplete or uncertain.

The Court of Appeal’s recent decision in Tonzip Maritime (Singapore) PTE Ltd v 2 Rivers PTE Ltd [2026] EWCA Civ 641 overturned the Commercial Court’s first-instance decision concerning whether a shipowner was entitled to refuse to load a cargo of crude oil because it had a reasonable apprehension that doing so would risk violating sanctions.

Lord Justice Foxton (with whom Lord Justice Coulson and Lord Justice Zacaroli agreed) allowed an appeal brought by the owners of the Catalan Sea (‘the vessel’) against voyage charterers on the basis that

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NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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