by SPQR49 » Wed Sep 27, 2017 11:21 am
Reminds me of the Karen Oltmann case [1976]. Time Charter(two years). Charterers wanted option to walk away in the second year due to market instability. Owners agreed, and the lawyers drafted the following “Charterers to have the option to redeliver the vessel after 12 months’ trading subject to giving three months’ notice".
Year 1 rolls around. Year 2... in May - Charterers purport to exercise the option stating redelivery will take place three months later. Owners say, what are you talking about, that option lapsed 31/12 i.e. at the point of 12 months trading, you're out of time. Charterers say No after 12 months means any time after...
This ambiguity was missed. Literally, grammatically, both parties` interpretations were correct.
Kerr J in contravention of the exclusionary rule admitted into evidence pre-contractual negotiations, a decision which was later criticised in Persimmon v Chartbrook [HL 2009].