Parbulk AS v. Kristen Marine SA and Aurele Trading Inco


Ship sale and purchase – Clause 14 of Norwegian Saleform 1993


This recent case gives guidance on the construction of Clause 14 of the Norwegian Saleform 1993 and also demonstrates how a simple amendment to the standard form can have far reaching consequences.


The contractual matrix was as follows: (Please see alert below)

The Claimant had agreed to purchase four vessels "en bloc," from Special Purpose Vehicles ("SPVs") under four Memorandum of Agreements ("MoAs"), and then charter the vessels back to the SPVs. The finance for the purchase of the vessels by the Claimant came from Calyon Bank.

Construction of the vessels was delayed and the Claimant became entitled to, and did, cancel the MoAs. The subject of the dispute was the Claimant's entitlement to certain "expenses," which it argued fell within the scope of sentence (3) of Clause 14 of the MoAs. These "expenses" were significant...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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