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Force Majeure

Notes 1 Some may think that English law would be reluctant to incorporate any principles derived from French law, no matter how sensible, useful or popular these may be. 2 Tandrin Aviation Holdings Ltd v Aero Toy Store LLC [2010] EWHC 40 (Comm), [2010] 2 Lloyd’s Rep 668, at para . . . Read more

Financial Guarantees

Notes 1 This chapter provides an overview of the key aspects of guarantees in relation to offshore construction contracts. For a detailed discussion of the topic see Geraldine Andrews, Richard Millett, Law of Guarantees. (6th edn, Sweet & Maxwell 2012). 2 See Spliethoff’s Bevrachtingskantoor BV v Bank of China Limite. . . . Read more

Warranty Claims and Correction of Defects

Notes 1 Oscar Chess v Williams [1957] 1 WLR 370. Denning LJ observed that the ordinary meaning of both words is a binding promise. He stated: ‘Everyone knows what a man means when he says “I guarantee it” or “I warrant it” or “I give you my word on it”. . . . Read more


Notes 1 E J MacGillivray and others, MacGillivray on Insurance Law (13th edn, Sweet & Maxwell 2015). 2 Prudential Insurance Co v IRC [1904] 2 KB 658, 663. 3 Consideration is usually represented by the payment of premium or the promise to pay a premium, although it is possible for . . . Read more

Termination and Step-In Rights

Notes 1 Such agreements are often described as carry over agreements and are discussed in more detail in ch 17. 2 [2001] CLC 1552. 3 [1998] 1 Lloyd’s Rep 609, [1998] 1 A11 ER 883. 4 Misrepresentation Act 1967 s 2(2). 5 See Johnson v Agnew [1980] AC 367, where . . . Read more

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 . . . Read more

Indemnity and Limitation of Liability Clauses

Notes 1 See h­t­t­p­:­/­/­y­o­s­e­m­i­t­e­.e­p­a­.g­o­v­/­o­p­a­/­a­d­m­p­r­e­s­s­.n­s­f­/­9­c­e­e­7­8­9­b­9­a­c­d­6­4­1­6­8­5­2­5­7­7­2­0­0­0­5­9­5­1­b­7­/­e­a­4­c­5­d­a­f­4­e­8­6­4­d­6­9­8­5­2­5­7­a­e­8­0­0­6­2­d­9­a­b­!­O­p­e­n­D­o­c­u­m­e­n­t­ (last accessed 5 February 2016). 2 See h­t­t­p­:­/­/­w­w­w­.h­a­l­l­i­b­u­r­t­o­n­.c­o­m­/­p­u­b­l­i­c­/­n­e­w­s­/­p­u­b­s­d­a­t­a­/­p­r­e­s­s­_­r­e­l­e­a­s­e­/­2­0­1­4­/­c­o­r­p­n­e­w­s­_­0­9­0­2­1­4­.h­t­m­l­ (last accessed 5 February 2016). 3 See h­t­t­p­:­/­/­w­w­w­.b­p­.c­o­m­/­e­n­/­g­l­o­b­a­l­/­c­o­r­p­o­r­a­t­e­/­p­r­e­s­s­/­p­r­e­s­s­-­r­e­l­e­a­s­e­s­/­b­p­-­t­o­-­s­e­t­t­l­e­-­f­e­d­e­r­a­l­-­s­t­a­t­e­-­l­o­c­a­l­-­d­e­e­p­w­a­t­e­r­-­h­o­r­i­z­o­n­-­c­l­a­i­m­s­.h­t­m­l­ (last accessed 5 February 2016). 4 [1980] AC 827 at 851, [1980] 1 Lloyd’s Rep 545 at 554. 5 [2010] EWCA Civ 691, [2011] 1 All ER (Comm) 1077. 6 . . . Read more

Acceptance and Delivery

Notes 1 The Contractor may not wish to part with possession until its claim for price adjustments are satisfied and the Company has waived any claim for payment of liquidated damages, whereas the Company may wish to terminate and take over possession if the work is not completed to its . . . Read more

Scope of Work and Interpretation of Contracts

Notes 1 See ch 3. 2 We consider the correct application of such clauses in ch 2 at paras 2.85–94. If the contract does not contain such a clause, a similar approach would apply as a matter of the principles of contract interpretation, to the extent that the inconsistency cannot . . . Read more