London Arbitration 3/16

Guarantee – Shipowners claiming against guarantor under letter of undertaking following charterers’ breach of charterparty – Whether guarantor’s seal was applied with proper authority – Applicable law as to actual authority – Whether guarantee enforceable in China – Whether guarantee valid and enforceable

By a NYPE form time charter governed by English law the claimant owners, a Hong Kong company, chartered their vessel to the charterers, another Hong Kong company, for a period of “about 58 months to about 60 months”. The charterers had no substantial assets of their own.