Saturday, November 17, 2012

Enforceability of Guarantees issued by SWIFT or E-Mail

Enforceability of Guarantees issued by SWIFT or E-Mail
In Golden Ocean Group Ltd v Salgaocar Mining Industries a charter party contract concluded amongst Golden Ocean (Ship Owning Company), M/s. Salgaocar (Guarantor); and the Charterer (a chartering arm of M/s. Salgaocar) contained a guarantee undertaking whereby the Charterer’s liability to make good any loss to the Ship Owner was covered by M/s. Salgaocar. The only issue was, like the other commercial terms of the contract, even this guarantee undertaking was communicated/ confirmed by e-mail instead of it being in writing. There was no formal charter contract or guarantee executed.

0 comments: