W. chartered a ship to proceed to Calcutta and load, and then proceed to a port in the United Kingdom, the charter party containing this clause: ‘Sufficient cash for ship’s ordinary disbursements to be advanced the master against freight, subject to interest, insurance, and 2 1 2 per cent, commission.’ W. at Calcutta advanced to the master pounds 441, but did not insure the ship, and she was totally lost during the voyage.
Held (affirming judgment), That the charter party implied, that W. was to secure his advances by insurance, and as he failed to insure, he was not entitled to repayment by the owners of the sum he advanced.
[1873] UKHL 2 – Paterson – 204
Bailii
Scotland
Updated: 11 August 2021; Ref: scu.652911