95, Griva Digeni St Limassol 3095, Cyprus Tel: 00 357 25 373734 Fax: 00 357 25 725502

66thth ANNUAL INTERNATIONAL ANNUAL INTERNATIONAL CONFERENCE PRACTICE OF MARITIME CONFERENCE PRACTICE OF MARITIME

BUSINESS AND NOVO 2010BUSINESS AND NOVO 2010ODESSA 4ODESSA 4thth June 2010 June 2010

95, Griva Digeni StLimassol 3095, Cyprus

Tel: 00 357 25 373734 Fax: 00 357 25 725502Email: gz.law@cytanet.com.cyWebsite: www.zambartaslawoffices.com

Premature Termination and Early Premature Termination and Early Redelivery Under CharterpartiesRedelivery Under Charterparties

The Consequences of Early The Consequences of Early TerminationTermination

The 4 roads to early termination of a CharterpartyThe 4 roads to early termination of a Charterparty

- CancellationCancellation

- Repudiatory BreachRepudiatory Breach

- FrustrationFrustration

- InsolvencyInsolvency

Methods of Cancellation of a Methods of Cancellation of a CharterpartyCharterparty

- Examples of typical cancellation clauses in - Examples of typical cancellation clauses in CharterpartiesCharterparties

Effects of CancellationEffects of Cancellation

- Rights arisingRights arising

- ObstaclesObstacles

- TrapsTraps

RepudiationRepudiation

- What does this mean?What does this mean?

- Relevant case law Relevant case law

Santa Clara – The Times 1.7.1996 – Santa Clara – The Times 1.7.1996 – Repudiatory Breach can be accepted by Repudiatory Breach can be accepted by actions; does not have to be express.actions; does not have to be express.

Frustration Frustration

Can Charterers use this Can Charterers use this doctrine as justification for doctrine as justification for premature termination of a premature termination of a Charterparty? Charterparty?

Consequences of FrustrationConsequences of Frustration

- Cases “LORNA 1”Cases “LORNA 1”

Early Redelivery in the Current Early Redelivery in the Current MarketMarket

- Calculating the losses- Calculating the losses

- Case Law - Case Law GRIPARION No.2 1994 1 LLR 533GRIPARION No.2 1994 1 LLR 533

GOLDEN VICTORY 2007 URHL 12GOLDEN VICTORY 2007 URHL 12 THE ACHILLEAS 2009 1 AC 61. THE ACHILLEAS 2009 1 AC 61.

This radically altered the law of This radically altered the law of remoteness of damage in remoteness of damage in contract.contract.

THE SILVIA 2010 EWHC.THE SILVIA 2010 EWHC.

INSOLVENCY INSOLVENCY

How does the insolvency of the parties How does the insolvency of the parties tie in with frustration?tie in with frustration?

ANY QUESTIONS?? ANY QUESTIONS??