“Force Majeure”, Extension of Time Clauses and the Prevention Principle in Shipbuilding Contracts

Year 2023, Volume: 3 Issue: 2, 85 - 88, 10.01.2024

Zoran Tasic

https://doi.org/10.14744/seatific.2023.0009

Abstract

Under English law, it is entirely up to the contract parties to agree on “force majeure” events that are beyond the builder’s control. Under an old English law principle known as the “prevention principle”, no party to a contract should be allowed to benefit from its own failure to perform. In the context of shipbuilding contracts, this principle should give protection to a shipyard in the case of delays in the delivery of a vessel that are caused by the buyer’s defaults. It is the builder’s fundamental duty to deliver the vessel to the buyer on the delivery date set out in the shipbuilding contract. If the builder demands to be released from that duty, it will have to follow certain requirements imposed by English law.

Keywords

shipbuilding contract, delivery, force majeure, extension of time, prevention principle, causation, notices, shipyard, buyer

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