Cesser clause – obligation on receivers to pay demurrage at port of discharge – charterers remaining liable
Grain was shipped from the US Gulf to Egypt.
The charterparty contained the following clause:
“Receivers at discharge to pay demurrage…. At discharging port, demurrage…. is to be settled directly between owners and receivers.”
The charterparty contained a cesser clause but also an addendum to the effect that the charterers would remain liable under the charterparty.
Staughton J held that the provision that the receivers would be liable for demurrage did not absolve the charterers from liability. The provision was construed as a guarantee by the charterers that the receivers would pay.
Were it not for the addendum providing for a continuation of liability, the cesser clause would have had to have been given full effect. In that case, a more convincing and natural interpretation of the charterparty would have been that the owners were required to fend for their own interests vis a vis the receivers and demurrage incurred at discharge and that the charterers would not be liable.
This content is restricted to site members. If you are an existing user, please login. New users may register below.