William Cecil in Hellenic Shipping News: The English High Court Again Declines to Apply the ‘Prevention Principle’ to a Shipbuilding Contract

05/27/2020

The “prevention principle” has been a popular argument run by shipyards in English law shipbuilding disputes in recent years. This enthusiasm has not been shared by English Courts and tribunals, and prevention principle arguments rarely, if ever, succeed.

The judgment handed down recently in Jiangsu Guoxin Corp v. Precious Shipping Public Co. Ltd1 is a further example of the English Court declining to apply the prevention principle to a shipbuilding contract.

What is the prevention principle?

The prevention principle applies where one party to a contract prevents the other party from complying with the contract timetable and the contract does not contain a mechanism for extending time in those circumstances.

Excerpted from Hellenic Shipping News. To read the full article, click here.

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