Antwerp Shipping and Chartering Services N.V. v. Swiss Volksbank (The Marine Pioneer - Q.B.D. (Com.Ct.) (Waller J.) - 3 December 1990

Guarantee of hire due under charterparty - Proper construction - Whether guarantor estopped from denying construction contended for by plaintiff - Estoppel by convention - Whether necessary for both parties to share same assumption - Estoppel by representation - Whether plaintiff entitled to rectification

In early December 1988, Antwerp, as agents for Eurosteel Lines Inc., received an offer from agents for Scot Line for the chartering of the vessel Marine Pioneer and a time charter dated 16 December 1988 was in due course concluded. During negotiations, agents for Scot Line stated that hire was payable through Swiss Volksbank by order of Messrs. Alvare Group “and same can guarantee as well the good performance of this charter”. Contrary to the impression given by this statement (and others), Scot Line was not, in fact, a member of the Alvare Group. Contemporaneously with these negotiations, but unknown to Antwerp, the agents for Scot Line were negotiating a sub-charter of the vessel between Scot Line and Iberica, a company which was within the Alvare Group. A sub-charter was entered into on the same day as the head charter.