With the remarkable rise in activities around the ordering of vessels to be constructed after years of very limited orders, industry players have yet again to be aware of the legal aspects and pitfalls relating to newbuilding contracts and refund guarantees.
The English Court of Appeal’s recent decision in Shanghai Shipyard Co Ltd v Reignwood International Investment (Group) Company Limited provides important clarification on how the courts will construe such instruments and indicates a movement away from presumptions based on the identity of the guarantor.
The M/Y Njord, which has a target delivery date in 2025, is a 289-metre private residential yacht featuring 117 luxury residences. Its primary goal is to act as a home base for individuals and families sharing a passion for travel, adventure and discovery across the oceans.
This briefing examines the decision in Shanghai Shipyard Co. Ltd. v Reignwood International Investment (Group) Company Limited & Ors , in which the Commercial Court considered whether an instrument issued in relation to a shipbuilding contract was a see-to-it or an on-demand guarantee.
In a judgment handed down today, WFW acted for the successful party on an appeal to the English Commercial Court on key questions concerning SAJ Form shipbuilding contracts (SBCs). This article explores the judgment.
