i-law

Law of Shipbuilding Contracts

Page 389

Index

Index

  • Abatement
  • Acceptance of breach
    • rescission by buyer, and, 212–215
  • Acceptance of vessel
    • delivery protocol, and, 136–137
    • effect, 103
    • introduction, 109
    • meaning, 108
    • method
      • buyer’s election, 109
      • introduction, 108
      • presentation of trial results, 109
    • text of SAJ Form, 109–110
  • Acts of God
    • force majeure, and, 160–161
  • Additional funding
    • contract price, and, 42–43
  • Adjustment of contract price
    • builder’s bonus, 73
    • delay in delivery
      • accrual of buyer’s rights, 69–71
      • amount of damages, 71
      • builder’s bonus, 73
      • introduction, 69
      • repudiation, and, 73
      • rescission, and, 71–73
      • text of SAJ Form, 59–60
    • early delivery, 73
    • excessive fuel consumption
      • generally, 75–76
      • text of SAJ Form, 60
    • inadequate deadweight
      • generally, 76
      • text of SAJ Form, 60–61
    • insufficiency of speed
      • generally, 74–75
      • text of SAJ Form, 60
    • introduction, 61
    • liquidated damages
      • caps on, 78–79
      • delay in delivery, 69–73
      • excessive fuel consumption, 75–76
      • inadequate deadweight, 76
      • insufficiency of speed, 74–75
      • introduction, 62–69
      • other deficiencies, 76–77
      • rescission, and, 78
      • settlement of builder’s liability, 77
    • other deficiencies, 76–77
    • repudiation, and, 73
    • rescission, and
      • delay in delivery, and, 71–73
      • generally, 78
      • text of SAJ Form, 61
    • settlement of builder’s liability, 77
    • text of SAJ Form, 59–61
  • AFS 2001 see Anti-Fouling Systems on Ships Convention 2001
  • Allocation of design risk
    • addressing of risk, 21–22
    • “design life” issues, 23
    • drawing approvals, 24
    • introduction, 20–21
    • NEWBUILDCON, 24
    • no addressing of risk, 22
    • planning approvals, 24
    • SAJ Form, 23
    • standard forms, 23–24
  • Alternative dispute resolution
  • Ancillary agreements
    • completion bonds, 308–309
    • contract and refund guarantee assignments, 321–322
    • guarantees issued on behalf of builder
    • guarantees issued on behalf of buyer
      • introduction, 318
      • post-delivery, 319
      • pre-delivery, 318–319
    • introduction, 299
    • letters of comfort, 320–321
    • options, 322–324
    • performance guarantees, 307–308

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      refund guarantees, 301–306
    • specifications, 299–300
  • Anti-bribery
  • Anti-Fouling Systems on Ships Convention 2001
    • description and class, and, 32
  • Appeals
    • dispute resolution, and
  • Applicable law
    • express choice of law, 282
    • generally, 281
    • no express choice of law, 282–283
    • Rome I Regulation, 282
    • ship conversion contracts, 292
    • text of SAJ Form, 282
  • Appointment of buyer’s representatives
    • generally, 84–85
    • introduction, 81–82
    • text of SAJ Form, 80
  • Approval of plans and drawings
    • generally, 82–84
    • introduction, 81–82
    • NEWBUILDCON, 84
    • text of SAJ Form, 80
  • Arbitration
    • alteration of delivery date
      • text of SAJ Form, 240
    • alternative dispute resolution, and, 251–252
    • appeals
      • agreements to waive rights, 247–248
      • generally, 246–247
    • Brussels I Regulation, and, 240
    • description and class, and, 34
    • entry in court
      • text of SAJ Form, 240
    • expenses
      • text of SAJ Form, 240
    • Hague Convention, and, 240
    • introduction, 241
    • judicial proceedings, and
      • introduction, 250
      • parallel proceedings and anti-suit injunctions, 250–251
    • London, in
      • agreements to waive right of appeal, 247–248
      • appeals, 246–247
      • back-to-back contracts, 248
      • constitution of tribunal, 245
      • costs, 248
      • enforcement of awards, 249
      • extension of delivery date of vessel, 248–249
      • introduction, 245
      • jurisdiction and separability of agreement, 246
      • other standard provisions, 248–249
      • proceedings, 246
      • text of SAJ Form, 248–249
    • Lugano Convention, and, 240
    • modifications, and, 96–97
    • non-technical disputes
    • notice of award
      • text of SAJ Form, 239
    • proceedings
      • text of SAJ Form, 239
    • standard form provisions, 241
    • technical disputes
    • text of SAJ Form, 241
  • Assignment
    • benefits, 254
    • burdens, 254–255
    • consent not to be unreasonably withheld, 257–258
    • damages, 256–257
    • general principles
    • insurance, and, 236
    • introduction, 253–254
    • novation, 261
    • prohibitions, 255–257
    • shipbuilding contracts, 259–260
    • standard forms, 261
    • text of SAJ Form, 253
    • third party rights, 258–259
  • AWES Form
    • background, 14
    • introduction, 14
    • text, 145
  • Bank charges
    • contract price, and, 46
  • Bill of sale
    • delivery documentation, and, 140
  • BIMCO, see also NEWBUILDCON
    • generally, 14
  • Bridging contracts
    • negotiation of contracts, and, 12–13
  • Brussels I Regulation
    • dispute resolution, and, 240
  • Builder
    • breach of contract, and, 154–155

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      modifications, and
      • generally, 95–96
      • text of SAJ Form, 90
    • negligence, and, 156
  • Builder’s bonus
    • liquidated damages, and, 73
  • Builder’s certificate
    • delivery documentation, and, 140
  • Builder’s credits
    • contract price, and
      • introduction, 43–44
      • variations to SAJ Form, 44
  • Builder’s guarantees
    • enforceability
      • disclosure requirement, 311–312
      • effect of variations and breaches, 313–317
      • introduction, 309–310
      • legal proceedings to prevent payment, 317–318
      • Statute of Frauds 1677, 310–311
  • Builder’s guarantees enforceability
    • other formalities, 311
  • Builder’s liabilities
    • text of SAJ Form, 81
  • Builder’s lien
    • title to vessel, and, 148
  • Builder’s risks
    • insurance, and, 231
  • Builder’s warranty
    • circumstances outside builder’s control, 195
    • consequential losses, 193–194
    • damage caused to vessel, 186–187
    • defects identified at delivery, 183
    • exclusion of liabilities, 191–196
      • circumstances outside builder’s control, 195
      • consequential losses, 193–194
      • express terms, 191–193
      • generally, 191
      • implied terms, 195–196
      • special losses, 193–194
      • unfair terms, 196–199
    • express terms, 191–193
    • extent of builder’s responsibility, 180
    • guarantee, 179
    • guarantee engineer
    • implied terms, 195–196
    • limitations
      • defects identified at delivery, 183
      • introduction, 182
      • loss of use, 185
      • replaced parts, 185
      • subcontractors’ warranties, 185–186
      • time limits, 184
    • loss of use, 185
    • nature, 181–182
    • notice of defects requirement
      • text of SAJ Form, 179
    • notice requirement
      • generally, 187
    • obligation to remedy
    • replaced parts, 185
    • special losses, 193–194
    • subcontractors’ warranties, 185–186
    • text of SAJ Form, 179–180
    • time limits, 184
    • unfair terms, 196–197
    • reasonableness, 197–199
  • Bunker Convention Certificate
    • description and class, and, 33
  • Buyer
    • default, and see also Buyer’s default
    • modifications, and
      • generally, 92–94
      • text of SAJ Form, 92
    • remedies for rescission, and
      • acceptance of repudiatory breach, 212–215
      • introduction, 212
      • specific performance, 215–216
    • representatives
      • appointment, 84
      • duty to co-operate, 85–86
      • inspection by, 84–85
      • introduction, 84–85
      • liability, 87–89
      • NEWBUILDCON, 85
      • obligation to notify defects, 86–87
      • text of SAJ Form, 80
      • unsuitability, 80
    • rescission, and see also Rescission by buyer
    • responsibility of, 81
    • supplies, 235
  • Buyer’s allowances
    • contract price, and, 54–57

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     Buyer’s credits
    • contract price, and, 44
  • Buyer’s default
    • common law remedies, 227–229
    • damages, 228
    • definition
    • effect
    • interest and charge
      • text of SAJ Form, 217
    • introduction, 218
    • notice, 219
    • repudiation, and, 228–229
    • rescission by builder, and
      • buyer’s supplies, 225
      • future instalments, 224–225
      • introduction, 221–222
      • prepaid instalments, 222
      • unpaid instalments, 222–224
    • sale of vessel
    • text of SAJ Form, 217–218
  • Buyer’s remedies
    • common law
      • acceptance of builder’s repudiatory breach, 212–215
      • specific performance, 215–216
  • Buyer’s representatives
    • appointment, 80
      • text of SAJ Form, 80–81
    • facilities, 81
    • inspection by, 84–85
    • introduction, 81–82
    • liability, 87–88
    • unsuitability, 89
  • Buyer’s supplies
    • builder’s responsibility
      • text of SAJ Form, 265
    • buyer’s responsibility
      • text of SAJ Form, 265
    • generally, 265–268
    • insurance, and, 230
    • offshore construction, 268–269
    • rescission, and
    • text of SAJ Form, 265
  • Cancellation
    • insurance, and, 238
  • Cargo Ship Safety Construction Certificate
    • description and class, and, 32
  • Cargo Ship Safety Equipment Certificate
    • description and class, and, 32
  • Cargo Ship Safety Radio Telegraphy (or Telephony) Certificate
    • description and class, and, 32
  • Characteristics of vessel
    • description and class, and, 27–28
  • China Maritime Arbitration Commission, see also CMAC Form
    • generally, 14
  • Choice of law
    • express choice of law, 282
    • generally, 281
    • no express choice of law, 282–283
    • Rome I Regulation, 282
    • text of SAJ Form, 282
  • Classification certificate
    • delivery documentation, and, 138–139
  • Classification of vessel
    • disputes, 34
    • introduction, 29
    • modifications, and
      • generally, 94–95
      • text of SAJ Form, 92
    • regulatory requirements, 31–34
      • environmental, 33–34
      • safety, 32–33
    • requirements, 29–34
  • CMAC Form
    • generally, 14
  • COLREG 1972, as amended
    • description and class, and, 32
  • Community of European Shipyards’ Association
    • generally, 14
  • Completion
    • trials, and, 108
  • Completion bonds
  • Completion of contract works
    • rescission by buyer, and, 209–211
  • Compliance with plans and drawings
    • description and class, and, 27
  • Concurrent delays
    • force majeure, and, 159
  • Condition of vessel
  • Conditions precedent and subsequent
    • contractual obligations, and, 273
    • generally, 272–273
    • introduction, 272
    • shipbuilding contracts, in, 273–274
    • text of SAJ Form, 272
    • waiver, 279–281
  • Conduct of trials

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     Confidentiality
  • Consent
  • Consequential losses
    • quality warranty, and, 193–194
  • Consumable stores protocol
    • delivery documentation, and, 138
  • Continuous Synopsis Record
    • description and class, and, 33
  • Contract assignments
  • Contract price
    • abatement rights, 52–53
    • additional funding, 42–43
    • adjustment of see also Adjustment of contract price
      • introduction, 61
      • liquidated damages, 62–77
      • text of SAJ Form, 59–61
    • bank charges, 46
    • builder’s credits
      • introduction, 43–44
      • variations to SAJ Form, 44
    • buyer’s allowances, 54–57
    • buyer’s credits, 43–44
    • currency, 46–47
    • deduction, 50–52
    • design and supply of drawings, 289
    • financing for the builder
      • additional financing, 42–43
      • instalment payments, 41–42
    • financing for the buyer
      • builder’s credits, 44
      • buyer’s credits, 43–44
      • introduction, 43
      • leasing structures, 44–45
    • financing the newbuild
      • builder, for, 41–43
      • buyer, for, 43–45
      • introduction, 41
      • subsidies, 45
    • instalment payments, 41–42
    • introduction, 40–41
    • method of payment, 53–54
    • prepayment, 50
    • renegotiation, 57–58
    • security, 49–50
    • set-off, 50–52
    • subsidies
      • contract provisions, 46
      • introduction, 45
      • OECD framework, 45–46
    • terms of payment
      • abatement rights, 52–53
      • bank charges, 46
      • currency, 46–47
      • deduction rights, 50–52
      • prepayments, 50
      • security, 49–50
      • set-off rights, 50–52
      • timing, 47–49
    • text of SAJ Form, 39–40
    • timing of payment, 47–49
  • Contractor’s warranty
    • ship conversion contracts, 330–331
  • Control of Harmful Anti-Fouling Systems on Ships Convention 2001
    • description and class, and, 32
  • Copyright
    • drawings
    • generally, 263–264
    • plans
    • specifications
    • text of SAJ Form, 263
  • Corruption
  • Crewing
    • conduct of trials, and, 106–107
  • Currency
    • contract price, and, 46–47
    • text of SAJ Form, 39
  • Damage to the vessel
    • quality warranty, and, 186–187
  • Damages
    • buyer’s default, and, 228
    • rescission by buyer, and, 212–214
  • Deadweight
    • generally, 76
    • text of SAJ Form, 60–61
  • Deduction
    • contract price, and, 50–52
  • “Deemed” delivery
    • generally, 150
  • Default of buyer
    • common law remedies, 227–228
    • damages, 228
    • definition
    • effect
    • interest and charge, 219
    • introduction, 218
    • notice, 219

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      repudiation, and, 228–229
    • rescission by builder, and
      • buyer’s supplies, 225
      • future instalments, 224–225
      • introduction, 221–222
      • prepaid instalments, 222–224
      • unpaid instalments, 223
    • sale of vessel
    • text of SAJ Form, 217–218
  • Defects
    • delivery, identified at, 183
    • force majeure, and
      • equipment, 165
      • machinery, 165
      • materials, 165
    • notification, and
      • generally, 86–87
      • introduction, 82–84
      • text of SAJ Form, 80–81
    • quality warranty, and, 183
  • Delay in delivery
    • builder’s breach of contract or negligence, 154–156
    • causes
    • concurrent delays, 159
    • events see also Force majeure
    • excessive delay
      • generally, 175
      • liquidated damages, and, 69–73
      • rescission for force majeure, 175–177
      • rescission by reference to “drop dead” date, 177
      • text of SAJ Form, 152
    • extension of time, 153–154
    • force majeure see also Force majeure
    • insurance, and, 238
    • introduction, 152–153
    • liquidated damages, and
      • accrual of buyer’s rights, 69–71
      • amount of damages, 71
      • builder’s bonus, 73
      • introduction, 69
      • repudiation, and, 73
      • rescission, and, 71–73
      • text of SAJ Form, 59–60
    • negligence, 154–156
    • notice, 173–174
      • text of SJ Form, 151
    • permissible delay
      • generally, 174
      • text of SAJ Form, 151
    • prior breaches, 158–159
    • rescission for excessive delay
      • generally, 165–177
      • liquidated damages, and, 69–73
      • text of SAJ Form, 152
    • text of SAJ Form, 151–152
  • Deliverability
    • application of general principles
      • implied terms excluded by contract terms, 116–121
      • implied terms not excluded by contract terms, 121–127
      • introduction, 115–116
    • compliance with description, 121–124
    • conditions, 112–113
    • fitness for purpose, 125–127
    • general principles
    • introduction, 111–112
    • NEWBUILDCON, 119–121
    • principles of construction, 113–114
    • reasonable fitness for purpose, 125–127
    • rejection of goods on quality grounds, 114–115
    • SAJ Form, 116–119
    • satisfactory quality, 124–125
    • statutory implied terms excluded by contract terms, 116–121
    • statutory implied terms not excluded by contract terms
      • compliance with description, 121–127
      • general principles, 121–127
      • introduction, 121
      • reasonable fitness for purpose, 125–127
      • satisfactory quality, 124–125
    • warranties, 112–113
  • Delivery, see also Institute Clauses for Builders’ Risks (1/6/88)
    • acceptance protocol, 133
    • bill of sale, 140

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      builder’s certificate, 140
    • builder’s lien, 148
    • classification certificate, 138–139
    • commercial invoice, 140
    • condition of vessel, 135–136
    • consumable stores protocol, 138
    • “deemed”, 150
    • delay, and see Delay in delivery
    • deliverability, and see Deliverability
    • documentation see Documentation
    • documents to buyer
      • text of SAJ Form, 132
    • drawings, 140
    • early delivery, 135
    • effect of lex situs, 141–142
    • fuel oil protocol, 138
    • introduction, 133
    • inventory protocol, 138
    • invoice, 140
    • method
      • text of SAJ Form, 132
    • non-registration certificate, 140
    • place
      • generally, 133
      • text of SAJ Form, 132
    • plans, 140
    • removal from shipyard, 150
      • text of SAJ Form, 133
    • risk of loss or damage, 149–150
      • text of SAJ Form, 133
    • tender of vessel
      • text of SAJ Form, 132
    • time
      • early delivery, 135
      • generally, 133–135
      • text of SAJ Form, 132
    • title to vessel
      • builder’s lien, 148
      • effect of English law, 142–148
      • effect of lex situs, 141–142
      • introduction, 141
      • no express provision in contract, where, 142–144
      • passing prior to delivery and acceptance, 144–148
      • text of SAJ Form, 133
    • trading certificate, 138–139
    • trials protocol, 138
    • vessel’s condition, 135–136
    • warranty of freedom from encumbrances, 139–140
  • Description and class clause
    • characteristics, 27–28
    • classification requirements
      • generally, 29–31
      • introduction, 29
    • compliance with plans and drawings, 27
    • dimensions, 27–28
    • dispute resolution, 34
    • environmental requirements, 33–34
    • hull number, 26–27
    • introduction, 26
    • performance guarantees, 28–29
    • quality standards and assurance, 34–36
    • registration, 38
    • regulatory requirements
      • environmental, 33–34
      • introduction, 31–32
      • safety, 32–33
    • subcontracting, 36–37
      • direct payments, 38
    • text of SAJ Form, 25–26
  • Description of goods
    • delivery time, and, 121–124
  • Design risk allocation
    • addressing of risk, 21–22
    • “design life” issues, 23
    • drawing approvals, 24
    • introduction, 20–21
    • NEWBUILDCON, 24
    • no addressing of risk, 22–23
    • plan approvals, 24
    • SAJ Form, 23
  • Dimensions
    • description and class, and, 27–28
  • Discharge of obligations
    • rescission by buyer, and
      • text of SAJ Form, 201
  • Discrepancies
    • generally, 283
    • text of SAJ Form, 281
  • Dispute resolution
    • alteration of date
      • text of SAJ Form, 240
    • alternative dispute resolution, 251–252
    • appeals
    • arbitration in London
      • appeals, 247–248
      • back-to-back contracts, 248
      • constitution of tribunal, 245
      • costs, 248
      • enforcement of award, 249
      • extension of delivery date of vessel, 248
      • introduction, 245
      • jurisdiction, 246
      • other standard provisions, 248–249
      • proceedings, 246
      • separability of agreement, 246
    • Brussels I Regulation, and, 240
    • description and class, and, 34

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      entry in court
      • text of SAJ Form, 240
    • expenses
      • text of SAJ Form, 240
    • Hague Convention, and, 240
    • introduction, 240–241
    • judicial proceedings
      • anti-suit injunctions, 251
      • introduction, 250
      • parallel proceedings, 250–251
    • Lugano Convention, and, 240
    • modifications, and, 96–97
    • non-technical disputes
    • notice of award, 239
    • proceedings, 239
    • standard form provisions, 241
    • technical disputes
    • text of SAJ Form, 239–240
  • Documentation
    • delivery, and
      • acceptance protocol, 136–137
      • bill of sale, 140
      • builder’s certificate, 140
      • classification certificate, 138–139
      • consumables stores protocol, 138
      • drawings, 140
      • fuel oil protocol, 138
      • inventory protocol, 138
      • invoice, 140
      • lube oils protocol, 138
      • non-registration certificate, 140
      • plans, 140
      • protocol, 136–137
      • trading certificate, 138–139
      • trials protocol, 138
      • warranty of freedom from encumbrances, 139–140
  • Drawing approvals
    • allocation of design risk, and, 24
  • Drawings
    • delivery documentation, and, 140
    • description and class, and, 27
  • Duties
    • generally, 262
    • text of SAJ Form, 262
  • Early delivery
    • generally, 135
    • liquidated damages, and, 73
  • Effective date of contract
    • conditions precedent and subsequent
      • contractual obligations, and, 273
      • generally, 272–273
      • shipbuilding contracts, in, 273–274
      • waiver, 279–280
    • introduction, 272
    • reliance upon, 274–279
    • text of SAJ Form, 272
    • waiver of conditions, 279–280
  • Energy Efficiency Design Index (EEDI)
    • description and class, and, 33–34
  • Entire agreement
    • exclusions of liability for misrepresentation, 286
    • express exclusions of liability for misrepresentation, 286
    • generally, 283–289
    • interpretation applicable to shipbuilding contracts, 287–288
    • “non-reliance” provisions, 284–286
    • text of SAJ Form, 281
  • Environmental protection
  • Environmental requirements
    • description and class, and, 33–34
  • Equipment defects
    • force majeure, and, 165
  • Equipment shortage
    • force majeure, and, 164–165
  • Excessive delay
    • generally, 175–177
    • liquidates damages, and, 69–73
    • text of SAJ Form, 152
  • Excessive fuel consumption
    • generally, 75–76
    • text of SAJ Form, 60
  • Exclusion of liabilities
    • quality warranty, and
      • circumstances outside builder’s control, 195
      • consequential losses, 193–194
      • express terms, 191–193
      • implied terms, 195–196
      • introduction, 191
      • special losses, 193–194
      • unfair terms, 196–199
  • Exclusion of liability
  • Expenses
    • design and supply of drawings, and, 289
    • dispute resolution, and, 240
  • Explosions
    • force majeure, and, 164
  • Express terms
    • quality warranty, and, 191–193
  • “Financial” defaults
    • rescission by buyer, and, 203
  • Financing
    • builder, and
      • additional financing, 42–43
      • instalment payments, 41–42

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      builder’s credits
      • introduction, 43–44
      • variations to standard wording, 44
    • buyer, and
      • builder’s credits, 43–44
      • buyer’s credits, 44
      • introduction, 43
      • leasing, 44–45
    • buyer’s credits, 44
    • instalment payments, 41–42
    • introduction, 41
    • leasing, 44–45
    • newbuild, the
      • builder, for, 41–43
      • buyer, for, 43–45
      • introduction, 41
      • subsidies, 45–46
    • subsidies
      • contract provisions, 46
      • introduction, 45
      • OECD Framework, 45–46
  • Fitness for purpose
    • delivery time, and, 125–127
  • Force majeure
    • causation
      • concurrent delays, 159
      • introduction, 157–158
      • prior breach, 158–159
      • text of SAJ Form, 151
    • delaying events
      • accidents beyond control of builder, 166–169
      • acts of God, 160–161
      • acts of princes or rulers, 161
      • caused by other commitments, 165–166
      • defects in equipment, 159–160
      • defects in machinery, 159–160
      • defects in materials, 159–160
      • delay in vessel construction, and, 165–166
      • delays in delivery, and, 164–165
      • equipment shortage, 164–165
      • explosions, 164
      • hostilities, 161–162
      • impact, 172–173
      • labour disturbances, 162–163
      • labour shortage, 163–164
      • lockouts, 162–163
      • other delaying events, 169–171
      • requirements of government authorities, 161
      • SAJ Form, 160
      • shortage of equipment, 164–165
      • shortage of machinery, 164–165
      • shortage of materials, 164–165
      • strikes, 162–163
      • war, 161–162
    • equipment defects, 165
    • equipment shortage, 164–165
    • excessive delay, 175
    • frustration, 177–178
    • general principles
    • impact of delaying events, 172–173
    • introduction, 152–153
    • machinery defects, 165
    • machinery shortage, 164–165
    • materials defects, 165
    • materials shortage, 164–165
    • notice of delay
    • permissible delays
      • definition, 151
      • generally, 174
      • text of SAJ Form, 151
    • “prevention principle”, 171–172
    • rescission for excessive delay
      • generally, 175–176
      • by reference to “drop dead” date, 177
      • text of SAJ Form, 152
    • ship conversion contracts, 330
    • text of SAJ Form, 151–152
  • Formation of contracts
    • formal requirements, 5–7
    • introduction, 5
    • negotiation
      • bridging contracts, 12–13
      • date of contract, 15
      • final meeting, 13
      • inception of project, 8–9
      • initial negotiations, 9
      • introduction, 8
      • invitations to tender, 9
      • letters of intent, 9–12
      • NEWBUILDCON, 14
      • other forms, 14
      • SAJ Form, 14
      • standard forms, 13–14
  • Frustration
    • force majeure, and, 177–178
  • Fuel consumption
    • generally, 75–76
    • text of SAJ Form, 60
  • Fuel oil protocol
    • delivery documentation, and, 138
  • Future instalments
    • rescission by builder, and, 224–225
  • Goal-based Ship Construction Standards
    • description and class, and, 33
  • Governing law
    • ship conversion contracts, 281–282

  • Page 398

     Greenhouse gas (GHG) emissions
    • description and class, and, 33
  • Guarantee engineer
  • Guarantees
    • contract and refund assignments, 321–322
    • description and class, and, 28
    • generally, 299
    • issued on behalf of builder
    • issued on behalf of buyer
      • introduction, 318
      • post-delivery, 319
      • pre-delivery, 318–319
    • quality warranty, and, 179
    • text of SAJ Form, 179, 290
  • Hostilities
    • force majeure, and, 161–162
  • Hull number
    • description and class, and, 26–27
  • Implied terms
    • quality warranty, and, 195–196
  • Inadequate deadweight
    • generally, 76
    • text of SAJ Form, 60–61
  • Inception of project
    • negotiation of contracts, and, 8–9
  • Innominate terms
    • delivery time, and, 112–113
  • Instalment payments
    • contract price, and, 41–42
  • Institute Clauses for Builders’ Risks (1/6/88)
    • assignment, 236
    • buyer’s supplies, 235
    • latent defects, 234–235
    • Nordic Marine Insurance Plan, 234
    • overview, 232–233
    • scope of coverage, 233
    • text, 377–388
  • Insufficiency of speed
    • generally, 74–75
    • text of SAJ Form, 60
  • Insurance
    • application of recovered amount
      • text of SAJ Form, 230
    • assignment, 236
    • “builders’ risks”, 231
    • buyer’s supplies, 230
    • cancellation, 238
    • delay in delivery, 238
    • duty to insure, 231–232
    • extent of coverage
      • text of SAF Form, 230
    • introduction, 231
    • Japanese Builder’s Risks Clause
      • generally, 232
    • latent defects, 234–235
    • partial losses, 236–237
      • text of SAJ Form, 230
    • ship conversion contracts, 330
    • termination of builder’s obligation
      • text of SAJ Form, 231
    • text of SAJ Form, 230–231
    • total loss, 237–238
      • text of SAJ Form, 230
  • Intellectual property rights
    • copyright, 263
    • drawings
      • generally, 264
      • property, 264
      • text of SAJ Form, 263
    • generally, 263–264
    • patents, 263
    • plans
      • generally, 264
      • property, 264
      • text of SAJ Form, 263
    • specifications, 263
    • text of SAJ Form, 263
    • trademarks, 263
  • Interest
    • buyer’s default, and, 217
  • International Air Pollution Prevention Certificate
    • description and class, and, 33
  • International Anti-fouling System Certificate
    • description and class, and, 33
  • International Sewage Pollution Prevention Certificate
    • description and class, and, 33
  • International Ship Security Certificate
    • description and class, and, 33
  • Interpretation clause
    • applicable law
      • express choice of law, 282
      • introduction, 281
      • no express choice of law, 282–283
      • Rome I Regulation, 282–283
      • text of SAJ Form, 281
    • discrepancies, 283
      • generally, 283
      • text of SAJ Form, 281
    • entire agreement
      • express exclusions of liability for misrepresentation, 286
      • general principles of interpretation, 287–288
      • generally, 283–284

      • Page 399

        “non-reliance” provisions, 284–286
      • text of SAJ Form, 281
    • text of SAJ Form, 281
  • Inventory protocol
    • delivery documentation, and, 138
  • Invitations to tender
    • negotiations of contracts, and, 9
  • Invoice
    • delivery documentation, and, 140
  • ISM Code
    • description and class, and, 33
  • ISO 9000
    • quality standards and assurance, and, 35–36
  • Japanese Builder’s Risks Clause
    • generally, 232
  • Judicial proceedings
    • dispute resolution, and, 250–251
  • Keel-laying
    • timing of payment, and, 47–48
  • Labour disturbances
    • force majeure, and, 162–163
  • Labour shortage
    • force majeure, and, 163–164
  • Latent defects
  • Leasing
    • buyer, and, 44–45
  • Letters of comfort
  • Letters of intent
    • negotiation of contracts, and, 10–12
  • Lex situs
    • title to vessel, and, 141–142
  • Limitation of liabilities
  • Liquidated damages
    • builder’s bonus, 73
    • caps on, 78–79
    • delay in delivery
      • accrual of buyer’s rights, 69–71
      • amount of damages, 71
      • builder’s bonus, 73
      • introduction, 69
      • repudiation, and, 73
      • rescission, and, 71–73
      • text of SAJ Form, 59–60
    • excessive fuel consumption
      • generally, 75–76
      • text of SAJ Form, 60
    • inadequate deadweight
      • generally, 76
      • text of SAJ Form, 60–61
    • insufficiency of speed
      • generally, 74–75
      • text of SAJ Form, 60
    • introduction, 62–69
    • other deficiencies, 76–77
    • repudiation, and, 73
    • rescission, and
      • delay in delivery, and, 71–73
      • generally, 78
      • text of SAJ Form, 61
    • settlement of builder’s liability, 77
    • text of SAJ Form, 59–61
  • Load Lines Convention 1966
    • description and class, and, 32
  • Location
    • conduct of trials, and, 105
  • Lockouts
    • force majeure, and, 162–163
  • Loss of use
    • quality warranty, and, 185
  • Losses
    • rescission by buyer, and, 214
  • Lugano Convention
    • dispute resolution, and, 240
  • Machinery defects
    • force majeure, and, 165
  • Marine Construction All Risks (01/09/07)
    • generally, 233
  • Maritime Labour Convention 2006 (ILO),, 32
  • MARPOL 73/78
    • description and class, and, 33–34
  • Materials
    • force majeure, and
    • substitution, and
      • generally, 96
      • text of SAJ Form, 90–91
  • Milestone events
    • timing of payments, and, 47
  • Modifications
    • builder, by
      • generally, 95–96
      • text of SAJ Form, 90
    • buyer, by
      • generally, 92–94
      • text of SAJ Form, 90
    • class, of
      • generally, 94–95
      • text of SAJ Form, 90
    • declaration and acceleration of work, 101
    • dispute resolution, 96–97
    • introduction, 91
    • offshore contracts, 99–101
    • specifications, of
    • substitution of materials, 96
      • text of SAJ Form, 90–91
    • text of SAJ Form, 90–91
    • variation procedures, 97–99
  • Navigation
    • conduct of trials, and, 106–107
  • Negligence
    • force majeure, and, 154–156
  • Negotiation of contracts
    • bridging contracts, 12–13
    • date of contract, 15
    • final meeting, 13
    • inception of project, 8–9
    • initial negotiations, 9
    • introduction, 8
    • invitations to tender, 9
    • letters of intent, 9–12
    • NEWBUILDCON, 14
    • other forms, 14
    • SAJ Form, 14
    • standard forms of contract, 13–14
  • NEWBUILDCON
    • adjustment of contract price
      • accrual of buyer’s rights, 69
      • caps on liquidated damages, 78–79
      • insufficiency of speed, 74–75
      • settlement of builder’s liability, 77
    • allocation of design risk, 24
    • anti-bribery, 294
    • applicable law, 282
    • approval of plans and drawings, 84
    • assignment, 261
    • background, 14
    • builder’s warranty, and, 181–182
      • consequential losses, 194
      • damage caused to the vessel, 187
      • implied terms, 196
      • nature, 181–182
      • notice requirement, 187
      • obligation to remedy, 181–182
      • replaced parts, 185
      • unfair terms, 197
    • buyer’s default
      • buyer’s supplies, 225
      • definition, 219
      • effect, 220–221
      • notice, 219
      • sale of vessel, 219
    • buyer’s representatives
      • appointment, 85
      • inspection by, 85
      • liability for, 88
      • unsuitability, 89
    • buyer’s supplies, 267–268
    • certificate of non-registration, 140
    • classification certificate, 138–139
    • classification requirements, 31
    • condition of vessel, 135–136
    • conditions precedent and subsequent, 274
    • conduct of trials
      • provisioning, 108
      • weather conditions, 106
    • confidentiality, 295
    • consequential losses, 194
    • contract price
      • currency, 47
      • introduction, 41
      • method of payment, 53–54
      • security for payment, 50
      • set-off and deduction, 51
      • timing of payment, 47
    • corruption, 294
    • currency, 47
    • damage caused to the vessel, 187
    • deliverability, 119–121
    • delivery of vessel
      • certificate of non-registration, 140
      • classification certificate, 138–139
      • condition of vessel, 135–136
      • time, 134–135
      • trading certificate, 138–139
    • discrepancies, 283
    • dispute resolution
      • alternative dispute resolution, 251–252
      • generally, 241
      • introduction, 34
      • technical disputes, 243
    • duties, 262
    • entire agreement
      • “non-reliance” provisions, 285–286
    • environmental protection, 293–294
    • exclusions of liability, 296–297
    • explosions, 164
    • force majeure,, 157
      • explosions, 164
      • hostilities, 162
      • lock-outs, 163
      • notice requirement, 173–174
      • other causes beyond control of builder, 167
      • permissible delays, 174
      • strikes, 163
      • war, 162
    • hostilities, 162
    • implied terms, 196
    • insurance
    • intellectual property rights, 264
    • interpretation clause
    • limitations of liability, 296–297
    • liquidated damages, 78
    • lock-outs, 163
    • loss of use, 181
    • modifications
      • builder, by, 96
      • buyer, by, 92–93
      • class, of, 94–95
      • dispute resolution, 97
    • “non-reliance” provisions, 285–286
    • notice, 271
    • notification of defects, 87
    • passing upon delivery and acceptance, 144
    • payment of price
      • introduction, 41
      • method, 53–54
      • security, 50
      • timing, 47
    • performance guarantees, 28
    • preamble, 20
    • property in plans and drawings, 264
    • provisioning, 108
    • quality standards and assurance, 34–35
    • quality warranty, and
      • consequential losses, 194
      • damage caused to the vessel, 187
      • implied terms, 196
      • loss of use, 181
      • nature, 181–182
      • notice requirement, 187
      • obligation to remedy, 188
      • replaced parts, 185
      • unfair terms, 197
    • refund guarantees, 306
    • registration, 38
    • regulatory requirements, 34
    • replaced parts, 185
    • rescission by buyer
      • financial defaults, 203
      • other defaults, 205
      • refund by builder, 207–208
      • total loss of vessel, 204
    • sale of vessel, 226
    • set-off and deduction, 51
    • special losses, 194
    • strikes, 163
    • subcontracting, 37
    • suspension of the work, 291–292
    • taxes, 262
    • text, 335–376
    • title to vessel
      • passing prior to delivery and acceptance, 145
    • trading certificate, 138–139
    • trials
      • completion, 108
      • deliverability, 119–121
      • provisioning, 108
    • unfair terms, 197
    • war, 162
    • weather conditions, 106
  • Non-registration certificate
    • delivery documentation, and, 140
  • Notice
    • address
      • text of SAJ Form, 270
    • arbitration awards, and, 239
    • buyer’s default, and, 219
    • delay in delivery, and, 173–174
    • force majeure, and, 173–174
    • generally, 270–271
    • language
      • text of SAJ Form, 270
    • quality warranty, and
      • generally, 187
      • text of SAJ Form, 17
    • rescission by buyer, and
      • text of SAJ Form, 201
    • text of SAJ Form, 270
    • trials, and, 102
  • Notification of defects
    • generally, 86–87
    • introduction, 82–83
    • quality warranty, and
      • generally, 187
      • text of SAJ Form, 179
    • text of SAJ Form, 80–81
  • Novation
    • assignment, and, 261
  • OECD framework
    • subsidies regulation, and, 45–46
  • Offshore contracts
    • buyer’s supplies, and, 268–269
    • expansion of workscope, 99–100
    • generally, 131
    • reduction of workscope, 100–101
  • Options
  • Partial losses
    • insurance, and
  • Parties
    • generally, 20–21
    • text of SAJ Form, 19
  • Passenger Ship Safety Certificate
    • description and class, and, 33
  • Patents
    • drawings

    • Page 402

      generally, 263–264
    • plans
    • specifications, 263
    • text of SAJ Form, 263
    • Payment
    • abatement rights, 52–53
    • bank charges, 46
    • currency, 46–47
    • deduction rights, 50–52
    • instalments, 41–42
      • text of SAJ Form, 40
    • method, 53–54
      • text of SAJ Form, 40
    • prepayments, 50
      • text of SAJ Form, 40
    • security, 49–50
    • set-off rights, 50–52
    • terms
      • abatement rights, 52–53
      • bank charges, 46
      • currency, 46–47
      • deduction rights, 50–52
      • prepayments, 50
      • security, 49–50
      • set-off rights, 50–52
      • timing, 47–49
    • timing, 47–48
  • Performance guarantees
    • description and class, and, 28–29
    • generally, 307–308
  • Permissible delay
    • generally, 174
    • text of SAJ Form, 151
  • Place of delivery
    • generally, 133
    • text of SAJ Form, 132
  • Plan approvals
    • allocation of design risk, and, 24
  • Plans
    • delivery documentation, and, 140
    • description and class, and, 27
  • Preamble
    • generally, 19–20
    • purpose, 19
    • text of SAJ Form, 19
  • Prepaid instalments
    • rescission by builder, and, 222
  • Prepayment
    • contract price, and, 50
    • text of SAJ Form, 40
  • Presentation of results
    • trials, and, 109
  • Prevention of Collisions at Sea Convention 1972 as amended
    • description and class, and, 32
  • Prevention of Pollution from Ships Convention 1973 as amended
    • description and class, and, 32
  • Price
    • abatement rights, 52–53
    • additional financing, 42–43
    • adjustment of see also Adjustment of contract price
      • introduction, 59
      • liquidated damages, 62–77
      • text of SAJ Form, 59–61
    • bank charges, 46
    • builder’s credits
      • introduction, 43–44
      • variations to SAJ Form, 44
    • buyer’s allowances, 54–57
    • buyer’s credits, 44
    • currency, 46–47
    • deduction, 50–52
    • design and supply of drawings, and, 289
    • financing for the builder
      • additional funding, 42–43
      • instalment payments, 41–42
    • financing for the buyer
      • builder’s credits, 43–44
      • buyer’s credits, 44
      • introduction, 43
    • financing the newbuild
      • builder, for, 41–43
      • buyer, for, 43–45
      • introduction, 41
      • subsidies, 45–46
    • instalment payments, 41–42
    • introduction, 40–41
    • method of payment, 53–54
    • prepayment, 50
    • renegotiation, 57–58
    • security, 50
    • set-off, 50–52
    • ship conversion contracts, 328–329
    • subsides
      • contract provisions, 46
      • EU framework, 45
      • introduction, 45
      • OECD framework, 45–46
    • terms of payment
      • abatement rights, 52–53
      • bank charges, 46
      • currency, 46–47
      • deduction rights, 50–52
      • prepayments, 50
      • security, 49–50
      • set-off rights, 50–52
      • timing, 47–48
    • text of SAJ Form, 39–40
    • timing of payment, 47–48
  • Prior breaches
    • force majeure, and, 158–159
  • Provisioning
    • conduct of trials, and, 107–108

  • Page 403

     Quality assurance
    • description and class, and, 34–36
  • Quality standards
    • description and class, and, 34–36
  • Quality warranty see Warranty of quality
  • Radio Station Licence
    • description and class, and, 33
  • Reasonable fitness for purpose
    • delivery time, and, 125–127
  • Refund by builder
    • rescission by buyer, and
  • Refund guarantees
  • Registration
    • description and class, and, 38
  • Regulatory requirements
    • environmental disputes, 33–34
    • introduction, 31–32
    • safety, 32–33
  • Rejection of goods
  • Rejection of vessel
  • Remedies
    • of defects
    • rescission by buyer, and
      • acceptance of repudiatory breach, 212–215
      • introduction, 212
      • specific performance, 215–216
  • Removal from shipyard
    • delivery, and
      • generally, 150
      • text of SAJ Form, 133
  • Renegotiation
    • contract price, and, 57–58
  • Replaced parts
    • quality warranty, and, 185
  • Representatives
    • appointment, 84–85
    • introduction, 81–82
    • liability, 87–89
    • text of SAJ Form, 80
    • unsuitability, 89
  • Repudiation
    • buyer’s default, and, 228–229
    • liquidated damages, and, 73
  • Rescission by builder see also Buyer’s default
    • buyer’s supplies, 225
    • future instalments, 224–225
    • introduction, 221–222
    • prepaid instalments, 222
    • unpaid instalments, 222–224
  • Rescission by buyer
    • acceptance of builder’s repudiatory breach, 212–215
    • buyer’s remedies
      • acceptance of repudiatory breach, 212–215
      • introduction, 212
      • specific performance, 215–216
    • buyer’s right
      • delay in delivery, 202
      • financial defaults, 203
      • introduction, 202
      • other defaults, 204–205
      • technical deficiencies, 203
      • total loss, 204
    • buyer’s supplies, 202
    • common law remedies
      • acceptance of repudiatory breach, 212–215
      • introduction, 212
      • specific performance, 215–216
    • damages, 212–214
    • delay in delivery, and
      • generally, 175–177
      • liquidated damages, and, 69–73
      • text of SAJ Form, 152
    • discharge of obligations
      • text of SAJ Form, 201
    • effect
      • builder’s obligation to refund, 206–208
      • buyer’s supplies, 208–209
      • completion of contract works, 209–211
      • damages, 212–214
      • introduction, 206
      • title to vessel, 209
    • excessive delay, and
      • generally, 175–177
      • liquidated damages, and, 69–73
      • text of SAJ Form, 152
    • financial defaults, 203
    • force majeure
      • by reference to “drop dead” date, 177
    • grounds
      • delay in delivery, 202
      • financial defaults, 203
      • introduction, 202
      • other defaults, 204–205
      • total loss, 204
    • introduction, 201–202
    • liquidated damages, and
      • delay in delivery, and, 71–73
      • generally, 78
      • text of SAJ Form, 61
    • loss of rights, 205–206
    • losses, 191
    • notice
      • text of SAJ Form, 201

    • Page 404

      refund by builder
    • specific performance, 215–216
    • technical deficiencies, 203
    • text of SAJ Form, 201
    • title to vessel, 209
    • total loss of vessel, 204
  • Risk of loss
    • delivery
      • text of SAJ Form, 133
    • generally, 149–150
    • ship conversion contracts, 330
  • Rome I Regulation
    • applicable law, 282
    • text of SAJ Form, 282
  • Safety of Life at Sea Convention 1974 as amended see also SOLAS 1974
    • description and class, and, 32
  • Safety Management Certificate
    • description and class, and, 33
  • SAJ Form see also under individual headings
    • allocation of design risk, 23
    • approval of plans and drawings, 80–81
    • assignment, 253
    • background, 14
    • buyer’s default, 217–218
    • buyer’s supplies, 265
    • contract price
      • adjustment, 59–61
      • generally, 39
    • default by buyer, 217–218
    • delays, 151–152
    • delivery
      • extensions of time, 151–152
    • description and class, 25–26
    • dispute and arbitration
      • generally, 241
    • effective date of contract, 272
    • force majeure,, 151–152
    • guarantee, 290
    • inspection, 80–81
    • insurance
    • intellectual property rights, 262
    • interpretation, 281
    • modifications, 90–91
    • notice, 270
    • preamble, 19
    • quality warranty, 179–181
    • rescission by buyer, 201
    • sundry provisions, 289
    • taxes and duties, 262
    • terms of payment, 39–40
    • trials, 102–103
    • warranty of quality, 179–181
  • Sale of goods legislation
    • nature of contracts, and, 1–3
  • Sale of the vessel
    • buyer’s default, and
  • Satisfactory quality
    • delivery time, and, 124–125
  • Scope of works
    • ship conversion contracts, 327–328
  • Sea trials see Trials
  • Sector Understanding on Export Credits for Ships
    • subsidies regulation, and, 45–46
  • Security
    • contract price, and, 49–50
  • Set-off
    • contract price, and, 50–52
  • Settlement of builder’s liability
    • liquidated damages, and, 77
  • Ship conversion contracts
    • features, 325–327
    • introduction, 325
    • key terms
      • applicable law, 292
      • buyer’s security, 329
      • cancellation, 331
      • contractor’s warranty, 330–331
      • force majeure, 330
      • insurance, 330
      • introduction, 327
      • price, 328–329
      • risk of loss and insurance, 330
      • scope of works, 327–328
      • time-frame, 329–330
      • title to works, 330
    • nature, 327
  • Ship Energy Efficiency Management Plan
    • description and class, and, 33
  • Ship Security Plan
    • description and class, and, 33
  • Shipbuilders’ Association of Japan see also SAJ Form
    • generally, 14
  • Shipbuilding contracts
    • formation
      • formal requirements, 5–7
      • introduction, 5
      • negotiation, 8–13
    • nature
      • generally, 1–3
      • sale of goods legislation, 3–4
    • negotiation
      • bridging contracts, 12–13
      • date of contract, 15
      • final meeting, 13
      • inception of project, 8–9
      • initial negotiations, 9
      • introduction, 8

      • Page 405

        invitations to tender, 9
      • letters of intent, 9–12
      • NEWBUILDCON, 14
      • other forms, 14
      • SAJ Form, 14
      • standard forms, 13–14
    • specifications, 8–13
    • terms
      • anti-bribery, 294–295
      • confidentiality, 295–296
      • corruption, 294–295
      • environmental protection, 293–294
      • liability exclusions and limitations, 296–297
      • suspension of work, 291–292
      • termination for buyer’s convenience, 292–293
  • Shortages
  • SOLAS 1974
    • description and class, and, 32
    • timing of payments, and, 48
  • Special losses
    • quality warranty, and, 193–194
  • Specific performance
    • rescission by buyer, and, 215–216
  • Specifications
    • description and class, and, 27–28
    • generally, 299–300
    • modification, and
      • builder, by, 95–96
      • dispute resolution, 96–97
      • generally, 92
      • text of SAJ Form, 90–91
    • modifications, and
      • buyer, by, 92–94
  • Speed
    • generally, 74–75
    • text of SAJ Form, 60
  • Standard forms of contract
    • allocation of design risk, 23–24
    • introduction, 13–14
    • other forms, 14
    • SAJ Form, 14
  • Statutory implied terms
    • excluded by contract terms, 116–121
    • not excluded by contract terms
      • compliance with description, 121–124
      • general principles, 115–127
      • introduction, 121
      • reasonable fitness for purpose, 125–127
      • satisfactory quality, 124–125
  • Steel cutting
    • timing of payment, and, 47–49
  • Strikes
    • force majeure, and, 162–163
  • Subcontracting
    • description and class, and, 36–37
      • direct payments, 38
    • quality warranty, and, 185–186
  • Subsidies
    • contract provisions, 46
    • EU framework, 45
    • introduction, 45
    • OECD framework, 45–46
  • Substitution of materials
    • generally, 95–96
    • text of SAJ Form, 90–91
  • Sundry provisions
    • generally, 289
    • text of SAJ Form, 289
  • Surplus consumable stores
    • disposition, 103
  • Suspension of the work
  • Taxes
    • generally, 262
    • text of SAJ Form, 262
  • Technical deficiencies
    • rescission by buyer, and, 203
  • Technical disputes
  • Tender of vessel
    • delivery, and
      • text of SAJ Form, 132
  • Terms of payment
    • abatement rights, 52–53
    • bank charges, 46
    • currency, 46–47
    • deduction rights, 50–52
    • prepayments, 50
    • security, 49–50
    • set-off rights, 50–52
    • text of SAJ Form, 39–40
    • timing, 47–49
  • Third party rights
  • Time of delivery
    • early delivery, 135
    • generally, 133–135
    • text of SAJ Form, 132
  • Time limits
    • quality warranty, and, 184
  • Title to vessel
    • builder’s lien, 148
    • effect of English law
      • introduction, 142
      • no express provision in contract, where, 142–144
      • passing prior to delivery and acceptance, 144–148
      • passing upon delivery and acceptance, 144

    • Page 406

      effect of lex situs, 141–142
    • introduction, 141
    • rescission by buyer, and, 209
    • text of SAJ Form, 133
  • Title to works
    • ship conversion contracts, 330
  • Tonnage Measurement Convention 1969
    • description and class, and, 32
  • Total loss of vessel
    • insurance, and
    • rescission by buyer, and, 204
  • Trademarks
    • drawings
    • generally, 263–264
    • plans
    • specifications, 263
    • text of SAJ Form, 263
  • Trading certificate
    • delivery documentation, and, 138–139
  • Trial protocol
    • delivery documentation, and, 138
  • Trials
    • acceptance of vessel
    • completion, 108
    • conduct
    • crewing, 106–107
    • deliverability
      • application of general principles, 115–127
      • compliance with description, 121–124
      • conditions, 112–113
      • construction, 113–114
      • general principles, 112–115
      • innominate terms, 112–113
      • introduction, 111–112
      • principles of construction, 113–114
      • reasonable fitness for purpose, 125–127
      • rejection of goods on quality grounds, 114–115
      • satisfactory quality, 124–125
      • statutory implied terms excluded by contract terms, 116–121
      • statutory implied terms not excluded by contract terms, 121–127
      • warranties, 112–113
    • disposition of surplus consumable goods
      • text of SAJ Form, 103
    • effect of acceptance
      • text of SAJ Form, 103
    • introduction, 103–105
    • location, 105
    • method of acceptance
      • acceptance of vessel, 109–110
      • buyer’s election, 109
      • introduction, 108
      • presentation of trial results, 109
      • text of SAJ Form, 103
    • navigation, 106–107
    • notice, 105
    • offshore contracts, 131
    • presentation of results, 109
    • provisioning, 107–108
    • rejection of vessel
    • text of SAJ Form, 102–103
    • weather conditions
      • generally, 106
      • text of SAJ Form, 102
  • Unfair contract terms
    • quality warranty, and
  • Unpaid instalments
    • rescission by builder, and, 222–224
  • Variation of contract price, see Adjustment of Contract Price
  • Variation procedures
    • generally, 97–99
  • Vessel’s condition
  • War
    • force majeure, and, 161–162
  • Warranties
    • delivery time, and, 112–113
  • Warranty of freedom from encumbrances
    • delivery documentation, and, 139–140

  • Page 407

     Warranty of quality
    • circumstances outside builder’s control, 195
    • consequential losses, 193–194
    • damage caused to the vessel, 186–187
    • defects existing on delivery, 183
    • exclusion of liabilities
      • circumstances outside builder’s control, 195
      • consequential losses, 193–194
      • express terms, 191–193
      • generally, 191
      • implied terms, 195–196
      • special losses, 193–194
      • unfair terms, 196–199
    • express terms, 191–193
    • extent of builder’s responsibility, 181
    • guarantee, 179
    • guarantee engineer
    • implied terms, 195–196
    • introduction, 180–181
    • limitations
      • defects existing on delivery, 183
      • introduction, 182
      • loss of use, 185
      • replaced parts, 185
      • subcontractors’ warranty, 185–186
      • time limits, 184
    • loss of use, 185
    • nature, 181–182
    • notice of defects requirement
      • text of SAJ Form, 179
    • notice requirement
      • generally, 187
    • obligation to remedy
    • replaced parts, 193–194
    • special losses, 193–194
    • subcontractors’ warranty, 185–186
    • text of SAJ Form, 179–180
    • time limits, 184
    • unfair contract terms
    • unfair terms
  • Weather conditions
    • trials, and
      • generally, 106
      • text of SAJ Form, 102

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