Changes

Addenda to the Shipbuilding Contract allowed the Buyer to cancel the Shipbuilding Contract if the vessel was not delivered by 30 October 2012. The Buyer cancelled the Shipbuilding Contract when the vessel was not delivered by 30 October 2012. The Buyer made a demand on the Guarantee, stating that “the Shipbuilding Contract was terminated due to delay in delivery of the Vessel in excess of 270 days” and that “the Builder… has delayed in the construction of the vessel for more than 270 days”. It also stated that the Buyer had demanded repayment from the Builder but had not been paid. The Bank claimed that (a) the Buyer’s demand on the Bank was not in the required form so that it was not liable to honour it; and (b) the Buyer was not entitled to enforce the Guarantee in light of the assignment to DnB. The Buyer then initiated these proceedings.

The Court dismissed the Buyer’s claim.