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Emergency Contact BARGEHIRE 2008 and force majeure Home Latest updates News BARGEHIRE 2008 and force majeure 18 May 2020 Download Sign up for alerts This article, which was written by Simon Tatham and David High of Maritime Law Firm, Tatham & Co., discusses the main practicalities of invoking clause 20 of the BARGEHIRE 2008 contract which is a force majeure clause. This might be because a shutdown in the field of operation means that it cannot be manned or loaded, that the cargo destined to be carried is very seriously delayed or simply that the charterers’ business is in such stress that there is no cash to pay ongoing hire. Clause 20 of BARGEHIRE is a standard BIMCO clause which has also found its way into SUPPLYTIME and WINDTIME and so this article will be relevant to these contracts as well. Why invoke clause 20? Where a party can successfully invoke clause 20 the clause provides them with a shield against “loss damage or delay” caused by a force majeure event or conditions. In other words potentially a complete defence to an otherwise good claim. The clause does not provide a right to terminate the contract and neither does it provide a right to suspend performance. So, for example, if hire is outstanding the Owner will still have a right to withdraw the vessel per clause 15 and claim the unpaid hire as a debt, but will not be able to recover any related losses caused by this. The formula to invoke clause 20 To invoke clause 20 you would need to prove: (a) an event or condition listed in the clause has occurred; (b) the event or conditions have prevented or hindered your contractual performance; (c) that prevention or hinderance was beyond your reasonable control to avoid or mitigate and; (d) you have given notice of the event. We will look at each element of this formula in turn. An event or condition The clause contains a list of specific events or conditions and also states it will respond to any other “similar cause” which is beyond the control of the p
BARGEHIRE 2008 and force majeure
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