VL logo interarb logo   CLOUT
  index.

Case 365: MAL 7

Canada: Saskatchewan Court of Queen's Bench (Wedge J.)

1 October 1996

Schiff Food Products Inc. v. Naber Seed & Grain Co. Ltd.

Original in English

Published in English: (1996), 149 Sask. R. 54, 5 C.P.C. (4th) 122, [1997] 1 W.W.R. 124, 28 B.L.R. (2d) 221 (Q.B.).

In 1992 the purchaser, Schiff Food Products Inc. ('Schiff'), of New York, sent a written offer to purchase oregano to Naber Seed and Grain Co. Ltd. ('Naber'), of Saskatchewan. While Naber never returned a signed copy of the offer, it responded to the offer for performance by submitting a sample and promising delivery. Eventually it became clear that delivery would not occur and Schiff sought to arbitrate the alleged breach of contract in New York before the American Spice Trade Association, in accordance with the arbitration provision printed on the offer that had been sent to Naber. Naber chose not to participate in the arbitration and an award was subsequently rendered against it. When Schiff tried to enforce the award in Saskatchewan, Naber objected on two grounds : that no contract bound the parties and that the arbitration agreement had not been agreed to in writing.

The Court allowed the application for enforcement. On the contractual issue, it found that Naber was bound as a result of its conduct: sending the sample and promising delivery. In respect of the agreement to arbitrate, the Court interpreted article 7 of the Model Law, as incorporated in the International Commercial Arbitration Act, broadly. It noted that the article did not expressly require a signature and therefore the Court was able to find that the incorporation of the arbitral agreement in Schiff's standard form offer met the requirement of article 7 that the agreement be in writing.


From the UNITED NATIONS Document: "General Assembly: Distr. GENERAL: A/CN.9/SER.C/ABSTRACTS/33: of, 19 December 2000. Original : ENGLISH."

UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW
CASE LAW ON UNCITRAL TEXTS (CLOUT)
Abstracts of cases

     This compilation of abstracts forms part of the system for collecting and disseminating information on court decisions and arbitral awards relating to Conventions and Model Laws that have emanated from the work of the United Nations Commission on International Trade Law (UNCITRAL). Information about the features of that system and about its use is provided in the User Guide (A/CN.9/SER.C/GUIDE/1).

     The abstracts have been prepared by national correspondents designated by their Governments. It should be noted that neither the national correspondents nor anyone else directly or indirectly involved in the operation of the system assumes any responsibility for any error or omission or other deficiency.

__________

Copyright © United Nations 2000

     All rights reserved.

Reproduced on this web site (www.interarb.com) with the kind permission of the United Nations, New York.
Database, typography, layout, etc. © interarb, 2003.