Research On Cancellation Of The Voyage Charter Party

A fundamental breach of contract may occur during the performance of the voyage charter party. A timely cancellation of the contract can serve as a good way to reduce the loss for the innocent party. It is, therefore, very significant for the innocent party to obtain the canceling right. This thesis is divided into five parts to analyze the issue of cancelling right under the voyage charter party.The first chapter analyzes some fundamental issues concerning the canceling right under the voyage charter party. The voyage charter party, as an agreement between the parties, attaches much importance to the autonomy of will on the issue of canceling right. The relevant regulations in the governing law chosen by the parties will not be applied unless there is no expressed clause in the voyage charter party.The second chapter compares the relevant legislations on the dissolution of the contract in both China and Britain, which shows that there are much difference in the lawful rescission of contract.Whether the breach of the contract can bring about the dissolution is not clarified in China’s law, while it seems practical and operable under Britain law. The conclusion drawn from the comparison offers some guidelines when the parties choose the governing laws.The third chapter analyzes the situations that lead to the canceling of the contract under the voyage charter party in China. Since the charterers enjoy more rights to cancel the contract than those of the ship-owners, it is necessary to protect the legitimate rights of the ship-owners to balance the interest between the parties.The fourth chapter analyzes the scope of the indemnification after the cancel of the voyage charter party if the contract is dissolved by the consultation between the parties, the ship-owner assumed the liability to indemnify the charterer only under the condition that the ship-owner breached the contract. If the contract is dissolved in accordance with the law, the party who breached the contract should indemnify the other party in order to recover the economic status to the level before the contract is concluded. The fifth chapter put forward suggestions as to how to protect the ship-owner’s legitimate right. To avoid the loss caused by the ship-owner’s easy dissolution of the contract, the ship-owner can limit the charterer’s right by inserting relevant clauses into the contract. In addition, as there are some defects in China’s Maritime Code, so some legislation advices are proposed.