A Delivery

(i) The concept of delivery

5.1 The point at which the vessel is delivered into a conventional time charter is a pivotal event. The charterer retains the right of cancellation until delivery has occurred. A mobilisation fee may be payable, but daily payments of hire do not commence until delivery. Following delivery, the charterer is obliged to continue paying hire for each day, on a take or pay basis, unless it may rely upon a specific exception in the charter payment terms. The charterer loses the right to terminate after delivery for reasons which, prior to delivery, may have allowed termination.