Wilful Misconduct and Gross Negligence Exclusions in Knock-for-Knock Provisions in Offshore Contracts

In the standard ocean towage and other offshore industry forms developed over the years by BIMCO, such as SUPPLYTIME 2005, HEAVYCON 2007, BARGEHIRE 1994 and PROJECTCON, the stated intent has been to provide forms that would be attractive and acceptable contracts, providing a balanced solution between the relevant Contracting Parties. A key part of that ‘balanced solution’ has been the inclusion of mutual allocation of risk clauses, commonly known as knock-for-knock clauses or ‘mutual hold harmless’ clauses.