Sail Labrador Ltd v The Owners of the Ship “Challenge One” and Ors - Federal Court (Trial Div)(Nadon J) - 28 June 1996

Demise charter containing option by charterer to purchase vessel at end of charter period - Option subject to full performance of all obligations under the charter - Whether charterer in breach of obligations - Whether charterer entitled to exercise option notwithstanding breaches of charter

On 21 June 1985 the plaintiff entered into a bareboat charter with Navimar Corporation Limitee to charter the ship Challenge One for five years. Clause 30 of the charterparty provided: