Voyage Charters

Timothy Young KC; Michael Ashcroft; Julian Cooke; Andrew Taylor; John Kimball; LeRoy Lambert; David Martowski; Michael Sturley

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Chapter 21 Remedies for Breach of the Charter

12.	Indemnity	135
	Indemnity for non-performance of this Charterparty, proved damages,	136
	not exceeding estimated amount of freight.	137

Damages in General

The object of damages in contract and tort

21.1 The remedy to which an injured innocent party most commonly resorts in the event of a breach of charter is a claim for damages, and this is frequently the only remedy available. The basic principle which lies behind an award of damages for breach of contract is that of indemnity, it being “the general intention of the law that, in giving damages for breach of contract, the party complaining should, as far as it can be done by money, be placed in the same position as if the contract had been performed”.1 This is often called the “compensatory principle”.2 That is

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supplemented by the principle of excluding “transferred loss”3 or “reflective loss”4 such that, in general,5 the claimant is entitled to recover only his own loss6 but not the loss suffered by others, although in the context of claims under bills of lading, the general rule is reversed by statute7 and the lawful holder of the bill of lading can recover the losses suffered by others.

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