Analysis Of Off-hire Clause In The Lease

This dissertation is concerned with off hire clause under Time charters. Under Time charters, it is charterers' primary obligation to pay hire. In order to protect their interests, charterers usually put in off hire clause in Time charters, providing that in the case of some events, charterers are entitled not to pay hire. There is no convention or law imposed compulsorily on Time charters, unlike bills of lading. Parties to the contract may negotiate any terms and conditions as long as they are not against public order. However, almost all Time charters are entered into on the basis of standard form.The most popular standard form for Time charters is still NYPE 1946. Although some clauses of it are out of date now, NYPE has been well recognized in the shipping market for it deals with the balance of interests between owners and charterers quite well. BALTIME, the other well-known standard form, is blamed for it speaks too much for owners and therefore is much less welcome than NYPE. Meantime, chartering men are very familiar with its clauses, concise and short, and there are authorities well established on the construction of these clauses. Therefore, NYPE is still preferable in the shipping world now.Most of the off hire clauses of Time charters are made on the basis of wording of the standard form with amendments and variations. Therefore, it is very important and meaningful to comprehend thoroughly the off hire clause in the standard form, particularly NYPE form (SHELLTIME form for liquid bulk). At present, most of Time charters provide for English law to apply and English law dominates this area undoubtedly. Since NYPE was drafted by New York Produce Exchange, some Time charters, in particular in American and Japan markets, also provides for American law to apply. There are hardly other laws agreed as the governing law in Time charters.It is well-known that English law is "case" law. Therefore, it is very important to study the relevant cases in the connection under English law. This thesis, based on English law and combined with relevant cases, will focus on the detailed analysis of clause 15 of NYPE, including analysis of the conditions for the off hire clause to apply and calculation of the off hire period, following introduction of general of the...