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Law and Sea.
Standard sets of clauses in voyage charterparty contracts.


Standard Forms of Contract and Standard Clauses
Last updated: 06-Oct-2014

Per Lord Diplock in Federal Commerce and Navigation Co Ltd v Tradax Export SA (The Maratha Envoy) [1977] 2 All ER 849 at 852:

No market such as a freight, insurance or commodity market, in which dealings involve the parties entering into legal relations of some complexity with one another, can operate efficiently without the use of standard forms of contract and standard clauses to be used in them. Apart from enabling negotiations to be conducted quickly, standard clauses serve two purposes.

First, they enable those making use of the market to compare one offer with another to see which is the better; and this, as I have pointed out, involves considering not only the figures for freight, demurrage and despatch money, but those clauses of the charterparty that deal with the allocation of misfortune risks between charterer and shipowner, particularly those risks which may result in delay.

The second purpose served by standard clauses is that they become the subject of exegesis by the courts so that the way in which they will apply to the adventure contemplated by the charterparty will be understood in the same sense by both the parties when they are negotiating its terms and carrying them out.


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