B S & N Ltd v Micado Shipping Ltd (The ‘Seaflower’) - QBD (Com Ct)(Timothy Walker J) - 19 April 2000

Tanker time-charter containing major oil company approvals clause - Shipowners agreeing to obtain Exxon approval within 60 days - Effect of failure to obtain Exxon approval - Whether shipowners in repudiatory breach - Whether charterers entitled to rescind for repudiatory breach and/or misrepresentation

The tanker Seaflower was time-chartered on 20 October 1997 for a period of 11 months, maximum 12 months at charterers’ option. The charter contained the following major oil company approvals clause: