Great Eastern Shipping Company Ltd v Far East Chartering Ltd & Anor

Great Eastern Shipping Company Ltd v Far East Chartering Ltd & Anor

The owners are entitled to enforce the LOI as the goods were delivered within the meaning of the LOI, and the LOI conferred a benefit on them as agents of the charterers under the Contracts (Rights of Third Parties) Act 1999. Public policy does not preclude enforcement as the dispute was bona fide and not manifestly unlawful.

Parties
Claimant: Great Eastern Shipping Company Limited; First Defendant: Far East Chartering Limited; Second Defendant: Binani Cement Limited
Jurisdiction
England and Wales
Judgment Date
05 May 2011
Procedural Posture
Commercial Claim (shipping/contract) / Judgment After Trial
Outcome
Claim allowed on primary argument; quantum and form of order reserved for further submissions.
Legal Topics
Letter of Indemnity, Third Party Rights, Delivery of Goods, Public Policy in Contracts
Commercial Law Contract Law Shipping Law Letter of Indemnity Third Party Rights Delivery of Goods Public Policy in Contracts

Case Brief

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Parties

Great Eastern Shipping Company Limited

Claimant

Far East Chartering Limited

First Defendant

Binani Cement Limited

Second Defendant

Procedural Posture

Commercial Claim (shipping/contract) / Judgment After Trial

Legal Issues

  1. 1 Whether the claimant shipowners can enforce a Letter of Indemnity (LOI) issued by the receivers (Binani) under the Contracts (Rights of Third Parties) Act 1999 or as a unilateral contract
  2. 2 Whether delivery under the LOI was effected as required
  3. 3 Whether public policy precludes enforcement of the LOI

Ratio Decidendi

The owners are entitled to enforce the LOI as the goods were delivered within the meaning of the LOI, and the LOI conferred a benefit on them as agents of the charterers under the Contracts (Rights of Third Parties) Act 1999. Public policy does not preclude enforcement as the dispute was bona fide and not manifestly unlawful.

Court Disposition

Claim allowed on primary argument; quantum and form of order reserved for further submissions.

Orders

  • Claim succeeds on the claimant’s primary argument; quantum and form of order to be determined after further submissions.