It was to sail in ballast from Liverpool to collect a cargo at Newport News, Virginia, and then to proceed via Panama to Osaka. A term in the charterparty agreement required the ship to be seaworthy and to be "in every way fitted for ordinary cargo service.
Edit Diplock, writing for a unanimous court, states that the test does not always depend on whether the thing that was breached was a warranty or a condition, as sometimes the circumstances are more complex than this.
He states that the correct test is to look at the events which have occurred as a result of the breach at the time when the contract was purported to be repudiated and to decide if these events deprived the party attempting to repudiate of the benefits that it expected to receive from the contract.
He decides that in this case, as the charterers still get to have the boat for 20 more months, the expected benefits can still be received.
Therefore this breach should not lead to repudiation, but only to damages. Ratio Edit The correct test to determine if a breach should lead to repudiation is to look at the events which have occurred as a result of the breach and to decide if these events deprived the party attempting to repudiate of the benefits that it expected to receive from the contract the breach must lead to the party not being able to obtain all or a substantial proportion of the benefits that they intended to receive by entering into the contract - if they do, then repudiation is in order, else only damages can be awarded.It looks like you've lost connection to our server.
Please check your internet connection or reload this page. Hong Kong Fir Shipping Ltd v Kisen Kaisha Ltd () EWCA Civ 7.
Construction of contractual terms as ‘conditions’ and repudiatory breach of contract. Background facts. Plaintiff [Hongkong] owned a ship and chartered it to the Defendant [Kawasaki] A clause in the agreement guaranteed that the ship would be in good condition etc.
Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd  2 QB 26 Harvela Investments Ltd v Royal Trust of Canada (CI) Ltd  AC  Council of Civil Service Unions v Minister for the Civil Service  AC In this case, the clause of good condition can only be seen as intermediate - obviously there could be a lot of small defects which would be easily dealt with and not .
Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd  rutadeltambor.comL.R.
12/20 which they renamed the "Hong Kong Fir", of some tons gross and tons net register, and this was its first charter under the new owners. The On account of various delays which the learned judge has found.