Shipbuilding Law - Option Agreement
Ravennavi S.p.A. v New Century Shipbuilding Company Ltd, [2007] EWCA Civ 58 Q: Whether Shipyard’s obligation in an option agreement to make available an earlier delivery date continues to exist after the option had been exercised, despite the execution of a formal shipbuilding contract which made no mention of any such obligation and contained an “entire agreement” clause. FACTS : By an Option Agreement dated 12th December 2003 the shipyard had granted the Buyer an option, to be exercised by 31st January 2004, to purchase two new crude and product tankers for delivery by 31st October and 31st December 2007 respectively. Clause 4 (ii) of the option provided, inter alia, that ‘Should the Sellers could find any possibility to anticipate delivery of the optional vessel(s) (for instance a previously booked berth becomes free), then the SELLER will grant the BUYER or its nominee the earlier delivery position for the optional vessel(s).’ Further, Clause 5 provides that: