A reformulation of the test

Peter Glover, of Norton Rose Fulbright, looks at repudiation of charterparties

Charterparties, at least those recognisable in the modern form, can trace their origins to the millennia shortly after the Anno Domini. As a commercial document the charterparty has long served the world of commerce. As a legal document it has a rich tradition of contributing to the body of English contract law. Today, as both shipowners and charterers face the challenges of trading in a difficult market, the charterparty continues to add to the body of English contract law as charterers’ seek to avoid their contractual obligations through repudiation. While English courts traditionally strive to uphold agreements made between the parties, cases such as the 2012 decision in the Aquafaith demonstrate the law as it relates to repudiation is continuing to evolve.