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CHARTERING
Obligations of the Parties
INTRODUCTION
Regarding the compliance with the contract of affreightment a clear distinction must be made between the conditions and the warranties that appear in the contract. They both form the core of the contract of affreightment.
A “condition” is a previously made restrictive provision and the inobservance of that condition will usually lead to a breach of contract. A typical example of a condition which has to be fulfilled is the delivery date or the cancelling date. If the ship is tendered after the cancelling date, the Charterer has the right to refuse the ship and consequently to break the contract of affreightment. (See also Analysis of the Printed Clauses, Clause 1.)
An obligation or "warranty" is a guarantee which has been incorporated in the contract and which gives the right, in case of non-observance, on a damage or indemnity and therefore not to a breach of contract. A typical example of an obligation or warranty on the part of the Owner is the guaranteed fuel consumption. If the consumption is more than the agreed quantity then the Ship Owner must pay a compensation to the Charterer. The Charterer however will not have the right to break the contract of affreightment.
