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Requirements of Timely Performance in Time and Voyage Charterparties

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Graduate School REQUIREMENTS OF TIMELY PERFORMANCE IN TIME AND VOYAGE CHARTERPARTIES - AN EXPLORATION OF THEIR IDENTITY, SCOPE AND LIMITATIONS UNDER ENGLISH LAW Thesis submitted for the degree of Doctor of Philosophy at the University of Leicester by Tamaraudoubra Tom Egbe School of Law University of Leicester 2019 Abstract REQUIREMENTS OF TIMELY PERFORMANCE IN TIME AND VOYAGE CHARTERPARTIES - AN EXPLORATION OF THEIR IDENTITY, SCOPE AND LIMITATIONS UNDER ENGLISH LAW By Tamaraudoubra Tom Egbe The importance of time in the performance of contractual obligations under sea carriage of goods arrangements are until now little explored. For the avoidance of breach, certain obligations and responsibilities of the parties to the contract need to be performed promptly. Ocean transport is an expensive venture and a shipowner could suffer considerable financial losses if an unnecessary but serious delay interrupt the vessel’s earning power in the course of the charterer’s performance of his contractual obligation. On the other hand, a charterer could also incur a substantial loss if arrangements for the shipment and receipt of cargo fail to go according to plan as a result of the shipowner’s failure to perform his charterparty obligation timely and with reasonable diligence. With these considerations in mind, this thesis critically explores the concept of timely performance in the discharge of the contractual obligations of parties to a contract of carriage. While the thesis is not an expository of the occurrence of time in all the obligations of parties to the carriage contract, it focusses particularly on the identity, scope, and limitations of timeliness in the context of timely payment of hire, laytime and reasonable despatch. The thesis argues that, the applicable legal rules and principles regarding timeliness in the above contexts are obsolete, outdated and not fit for 21st century shipping practice. The applicable rules cannot continue to ignore the impact and influence which technological advancement has had in shipping practice. The thesis considers what reforms could and should be adopted in English law as to the appropriate approach to questions of timeliness in time and voyage charterparties. The issues engaged in the discussion are mainly from the perspective of the rules and principles extracted from decided cases under English law, but significant attention is accorded valuable position in the United States. i Acknowledgements I wish to express my profound gratitude to Jehovah God for his guidance, protection and for giving me good health which has enabled me finally complete this project at the University of Leicester. I also wish to offer special thanks to my Supervisor Dr Ebenezer Adodo for his invaluable guidance and support over the years. There were moments throughout the PhD process when I thought I did not have it in me to complete this process. Your encouragement and support in my low moments are certainly appreciated. You were not only my supervisor, you were my mentor and I am forever indebted to you. Your detailed comments and constructive feedback with regards to chapters of my thesis were much appreciated. I also wish to use this medium to thank my second supervisor Mr. Masood Ahmed for his excellent comments and feedback with regards to chapters of my thesis. I am grateful. I also wish to thank Teresa Rowe for the support provided throughout the PhD process. I am particularly grateful to my Parents Daniel and Baro Egbe. You have both been the architect of this project. There were times when I felt disheartened, overwhelmed and disconcerted and you were always there to pick up the pieces and whip me into shape. Dad you have been my inspiration and I say thank you. Thank you for all the financial and emotional sacrifices over the years. I may not be able to pay back, but I would do you both proud. Thanks for always been available to read and make comments on chapters of my thesis. Your ability to critique my work and give constructive feedback is deeply appreciated. The frequent calls and exertion of pressure for me to see this thesis to completion have been invaluable. Thank you very much. Mom, thank you for your patience and love over the years to this moment. I am grateful. There were times when I felt overwhelmed and sad, you were there for me. Thank you. To my siblings Dr. Tamaraudubamo Egbe, Benaebi Egbe and Adimiyenkumo Egbe I am grateful for your perseverance, patience and support. It has indeed been a testing ride but we thank Jehovah for his mercies. I also reserve special praise for my friends especially, Michael Chizurumoke, Cristina Saenz Perez, Matteo Corsalini, Suwilanji Namusamba, Coleen Lewis and Elizabeth Agbana who in many ways were my support system throughout the PhD journey. You lot have been my support system. Michael, your cooking was fabulous and thanks a lot for those meals (husband material 1000 yards). Your advice and ability to listen during i my low moments are also deeply appreciated. I have indeed learned a lot of life lessons from you. I know I can sometimes be a pain especially with my frequent jabs, thank you for tolerating my excesses. You are more than a friend, you are family. Cristina, your support and friendship over the years have been invaluable. You are indeed a true friend. As it is often said ‘friends show their love in times of trouble, not in happiness’- Euripides. I have found these words true in your friendship. The numerous times we went for drinks were invaluable in helping me navigate through my dark moments. Matteo, although we only had a good few months, those were some of my best moments in Leicester. I am grateful to have met you along life’s journey. As you often say ‘massadit,’ thank you my friend. Elizabeth, my bestie that year. How can I forget you? Thank you for your support over the years. I still remember when we first met and little did I know that we would be friends. Thanks for the late nights, the calls, the fights and the quarrels. I know I could sometimes be annoying, but thanks for tolerating me. As it is often said ‘a true friend is someone who is there for you when he’d rather be anywhere else.’-Len Wein. I have found these words true in your friendship. You have indeed been a true friend in low moments. Thank you. To Suwilanji, wow! What can I say? Those late night trips to Pepes were instrumental to restoring clarity of thought. Your love for food and extra spicy chicken never cease to amaze me. (Lol!) Thanks for your friendship. As it has often been said ‘friendship isn't about who you've known the longest, it's about who came and never left your side’-Yolanda Hadid. These words have proved truer in your friendship. I say thank you. Thank you Coleen for your immense help with the formatting of my thesis. Your efforts are deeply appreciated. To all my friends, former colleagues at University of Surrey and colleagues here at Leicester I say thank you. ii Table of Contents Abstract .......................................................................................................................................... i Acknowledgements ................................................................................................................... i Table of Contents ......................................................................................................................... iii Table of Abbreviations ................................................................................................................. vi Chapter 1 ...................................................................................................................................... 1 General Introduction .................................................................................................................... 1 1.1 Background Context ..................................................................................................... 1 1.2 Research Objectives ..................................................................................................... 5 1.3 Research Questions ...................................................................................................... 5 1.4 Research Methodology ................................................................................................ 8 1.5 Structure of Thesis ........................................................................................................ 9 1.6 Original Contribution .................................................................................................. 10 Chapter 2 .................................................................................................................................... 14 Punctual Payment of Hire .......................................................................................................... 14 2.1 Introduction ................................................................................................................ 14 2.2 Nature of Obligation to Pay Hire on Time ................................................................. 15 2.3 Classification of Contractual Terms ........................................................................... 17 2.4 Punctual Payment of Hire- Condition? ...................................................................... 21 2.5 Identification of Repudiatory Breach - The Proper Test ........................................... 36 When is a Vessel an “Arrived Ship”? - An interplay between Principles and Commercial Convenience ..............................................................................................................................
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