HFW Briefing – Confirmation received from the Court of Appeal: the ASTRA was wrongly decided

Chartering, Disputes, Legal — By on October 7, 2016 at 12:42 PM


Confirmation received from the Court of Appeal: the ASTRA was wrongly decided

In 2013, the Commercial Court in the ASTRA held controversially that the obligation to make punctual payment of hire by the charterers was a condition, thus entitling the owners to withdraw the vessel and claim a loss of bargain for the remaining period of the charter albeit the delay in payment of hire may only be a few minutes late.

In 2015, the Commercial Court in Spar Shipping AS v Grand China Logistics Holding (Group) Co. Ltd, declined to follow the decision in the ASTRA and resumed back to the orthodox approach established since the BRIMNES that punctual payment of hire by the charterers was not a condition but an innominate term.
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Whilst every care has been taken to ensure the accuracy of this information at the time of publication, the information is intended as guidance only. It should not be considered as legal advice.


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