Lloyd's Maritime and Commercial Law Quarterly
NOTICE OF UNREADINESS
Aktion Maritime Corporation of Liberia v. S. Kasmas & Bros. Ltd. (The Aktion)
Prior to March 1987 most reputable London shipbrokers, if asked by a prospective purchaser of a second-hand vessel contracting on the terms of the Norwegian Sale-form if he had to accept a notice of readiness purportedly given by the seller when the vessel was not in its contractually deliverable state at the time the notice was given, would have said, “Of course not”. The decision of Hirst, J., in The Aktion
1 has (or ought to have) changed that response. This note will state the practical effects of the decision, and advise potential purchasers of simple provisions that can be incorporated into the sale contract to clarify the validity and effect of the notice of readiness and better safeguard their legal position.
The facts of the case were that by a memorandum of agreement (MOA) the owners of the Aktion agreed to sell the vessel to the buyers for U.S.$8.3 million. The memorandum was executed on the familiar Norwegian Saleform (1964 edn.) and provided in cll. 3 and 18 as follows:
Clause 3: The … Purchase Money shall be paid … on delivery of vessel but not later than three days … after the vessel is ready for delivery and written notice … has been given to the buyers by the sellers.
Clause 18: Vessel to be delivered with her class fully maintained, free of recommendations and average damages affecting her class … Vessel to be delivered in the same basic condition as when inspected fair/wear/tear excepted … machinery … to be in normal working condition at the time of delivery.
At the time of the signature of the MOA the vessel was at sea, and when she sub-
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