The Study On Legal Remedies Of The Builder For The Buyer's Default Under Shipbuilding Contract

The financial crisis in August 2008 greatly shocked the shipbuilding market. The situation which the buyers break the contract results in the great loss of the builders. Our country has took place of the biggest shipbuilding country South Korea in the order of new shipbuilding. So the situation which the buyers break the contract will lead to more serious damage to our shipbuilding industry. At present the most popular standard contract in the world is SAJ shipbuilding contract, that is not suitable to our shipbuilding industry. BIMCO has propagated to NEWBUILDCON contract. which is inclined to the buyers' benefits. The CSTC which refer to the SAJ is not suitable to our modern shipbuilding industry. China Maritime Arbitration Commission has published its new standard newbuilding contract(Shanghai Form), which is suitable to the large-scale ship and the inland river ship. Shanghai Form takes the advantage of the International shipbuilding contract and follows the trend of the new rule and the standard.But some terms of the Shanghai Form need be weighed.The standard shipbuilding contract often chooses to British law, and the comparision of the British law and Chinese law is very important to protect our builders' benefits. The paper uses the theory of efficiency breach to analyse the buyers' behaviors of breaching the contract, and then analyse the different relief measures under the contract of shipbuilding. All the contents are divided into five chapter:In the first chapter of the general introduction of shipbuilding contract, the concept and legal feature of the shipbuilding contract is analysed and the popular standard shipbuilding contracts in the world are compared.In the second chapter of the legal environment for the buyers' contract breaching, the liability of breaching the contract is analysed with law-economy theory, in which the tool of cost-profit method and theory of efficiency breach is applied to reveal the influence element for the buyers' contract breaching in the financial crisis. In order to take measures to protect the builders' benefit, the comparion of the British law and Chinese law is analysed with the terms about the buyer's default.In the third chapter of the legal action about the buyer's breaching the liability of ship price payment, the legal result and the term of payment are analysed and the legal measures for the builder are offered. In the forth chapter of the legal action about the buyer's breaching the liability of deliver the ship, the content of the liability and the legal results are analysed. At the end of the chapter, the legal measures for the builder are offered.In the fifth chapter of other contract liabilities, the legal measures are offered for the breach of the liability of Approval of plans and drawings in a arranged period, the liability of Sea Trial, the liability of Notice in rescission period.