Bunge SA v Nidera BV [2015] UKSC 43 is a landmark decision of the United Kingdom Supreme Court in the area of commercial law, providing guidance on the assessment of damages arising out of a wrongful repudiation of a contract for the sale of goods.

In his ruling, Lord Sumption succinctly expressed the relevant principle in assessing damages: Commercial certainty is undoubtedly important, although its significance will inevitably vary from one contract to another.

[2]In that regard, he held that: The Golden Victory, when it was handed down, attracted considerable discussion among jurists and academics, with one former judge of the Commercial Court declaring that it was "‘the worst decision on any aspect of English commercial law, and certainly shipping law, that has come out of the House of Lords in my entire career in the legal profession..."[3] Academics raised several concerns about the majority decision, stating that it damages the certainty which is one of the major advantages of English commercial law, and it encourages the breaching party to delay settlement or prolong litigation.

[4] However, it has also been pointed out that the majority decision also reinforced the risk allocation function of contract, and the rule stated in it is both socially desirable and it provides an incentive to inform the other party as early as possible of their intention to breach, thus creating a more efficient outcome from a game theory perspective.

[7] Most commentators point out that clear and express words will need to be incorporated into such contracts to oust the common law principles involved, which will make the relevant clauses more complex.