Rank Enterprises Ltd and ors v Gerard - Court of Appeal (Kennedy, Thorpe and Mance LJJ ) - 27 January 2000

Sale of ship - Defendant providing guarantee that ‘should claims which have been incurred prior to the time of delivery…be made against’ the vessel, he would indemnify the buyers in respect of any loss arising out of or in connection with such claims - Meaning of clause 9 of Norwegian Saleform

This appeal concerned the construction of a guarantee dated 9 April 1997 given by the defendant. The guarantee was given in respect of the purchase by the second, third and fourth claimants of three vessels from their previous owners. The purchases were agreed under three memoranda of agreement (‘MOA’) dated 9 April 1997 on the Norwegian Saleform with alterations. Clause 9 of each MOA provided: