Shipping—Charterparty—Right to terminate charter

Queen’s Bench Division, Commercial Court, Eder J, 8 Nov 2011

There is no authority in the field of landlord and tenant to the effect that an unambiguous demand of rent operated in law as an automatic waiver of the right of forfeiture; even if there is, it is questionable whether the principle applies beyond that particular field.

David Joseph QC (instructed by Lawrence Graham) for the charterer. David Lewis (instructed by Wikborg Rein) for the owner.

The parties entered into a bareboat charterparty of the owner’s vessel from December 2007 until December 2014. From 16 April 2009, however, no hire was paid by the charterer. When the instalment that was due on 16 April 2009 was not paid, the owner sent a written notice reminding the charterer that if payment was not remedied within three banking days, that constituted an event of default under the terms of the charter which entitled the owner to terminate