Redelivery period – narrowing down clause – how interpreted
Two vessels were both let on five year time charters.
The term of the charters was described as follows:
“That the said owners agreed to let and the said charterers agreed to hire the said vessel from the time of delivery for five years charter with three months more or less in charterer’s option, to be narrowed to 45 days more or less in charterer’s option latest by the end of the fourth year.”
After the fourth anniversary had come and gone charterers gave notice of redelivery within a ninety day (practically equivalent to 3 months) spread expiring on the fifth anniversary.
Charterers accepted that the notice constituted a breach because late but argued that it caused the owners no loss and argued that he owners were obliged to accept redelivery within the 90 day spread ending on the fifth anniversary.
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