Allocation of Risk

Notes

1 This list is not intended to be exhaustive. Other risks that are typically allocated include taxation, levies, charges and contributions; these are beyond the scope of this book.

2 Logic Construction: Standard Contracts for the UK Offshore Oil and Gas Industry (2nd edn, October 2003).

3 ibid.

4 Hadley v Baxendale (1854) 156 ER 145, (1854) 9 Ex 341.

5 With a view to achieving greater certainty, it is often preferable from a legal perspective to specify a fixed lump sum amount, given that the contract value can be subject to variations.

6 Article 1(7) LLMC, Caspian Basin Specialised Emergency Salvage Administration v Bouygues [1997] 2 Lloyd’s Rep 507.

7 Seismic Shipping Inc v Total E&P UK plc (The Western Regent) [2005] EWCA Civ 985, [2005] 2 All ER (Comm) 515.