More OG Romsdal Fylkesbatar AS v The demise charterers of the Ship "Jotunheim" - QBD (Com Ct) (Cooke J) - 12 March 2004

Bareboat charter - Hire purchase agreement - Charterers paid first three instalments of hire late - Whether owners entitled to withdraw vessel - Whether Court had jurisdiction to grant relief from forfeiture - Whether relief should be granted

The claimants chartered the vessel Jotunheim to the defendants under a bareboat charter on an amended Barecon 89 form, including Part IV which provided for a Hire/Purchase Agreement, with additional typed clauses. The ordinary form of hire clause in the Barecon 89 form, clause 10, was replaced by typed clause 31, which stated that the charterparty was concluded in anticipation of the eventual sale of the vessel by owners to charterers, that the sale price had been agreed as US$950,000, that a deposit of US$25,000 was payable on signing the charter, that for the purpose of the bareboat calculation US$725,000 was to be paid over a period of 48 months at a monthly bareboat hire rate of US$15,104.17 in advance to owners' nominated bank "discountless and non-refundable", and that lump sum deposits of US$50,000 or US$75,000 were to be paid with the 6 months, 12 months and 16 months hire payments. The final part of the clause provided that on completion of the 48th payment the charterers "shall have purchased the vessel and owners shall take all necessary steps immediately to transfer ownership of the vessel to the company nominated by the charterers."