ABSTRACT
The “Cancelling Date” is the last day on which the seller can give a valid Notice of Readiness confirming that the ship is ready for delivery. The consequences of the seller's failure to give Notice of Readiness within this timeframe are severe as the buyer will then be entitled to terminate the agreement. However, the imposition of this fixed deadline may create potential difficulties for the seller, particularly when it is continuing to trade the ship in the period between signing and delivery. Despite careful planning, situations can arise which render impossible the seller's ability to deliver the ship to the buyer within the contractually prescribed timeframe. The purpose of clause 12 of Shipsale 22 is to prevent the seller and the buyer from incurring time and cost preparing for delivery of the ship in circumstances where the seller is aware that it will not be in a position to deliver the ship by the Cancelling Date.
