The charterers argued that this situation fell into the first category. The purpose of including the right of withdrawal under Article 32 was to guarantee rents and deposits. The usual form of the rental clause in The Barecon 89 form has been replaced by clause 31. It stated that the sale price was $950,000 and that the payment of an upfront payment of $25,000, a monthly cash lease rate of $15,104.17 $US paid in advance, which was „no discount“, and that additional instalments were expected after six months, twelve months and sixteen months. In addition, the standard provision of Barecon 89, which provides for an additional seven days for payment, was removed and replaced by clause 32, which provides for payment problems The ship was delivered on 16 or 17 December 2003, but problems with the payment of rent quickly arose. Payments for the first and second months were made five days late. The first was short by 17 cents, the second by $41.17. The owners complained and requested that the deficit be offset by the payment due on February 16 or 17, 2004 in February. On 18 and again on 24 February they bid the payments by fax, and the second time they threatened to take back the ship if the rent was not paid that day. However, the charterers were only able to pay „next week“.

On February 25, the owners` brokers informed the charterers that the owners were proposing to withdraw from the charter, which they did later that day. However, the February payment was made on February 26 (short of $142.67) and another payment of $88.50 was made on March 2. Exemption from forfeiture The last argument put forward by the charterers was that they should be entitled to an exemption from the effect. Such an exemption is not available where the owner exercises a right of withdrawal in the context of a temporal charter, since a charter is a contract for services, does not confer a right of ownership and is not a necessary contract for a given service (The Scaptrade [1988] 2 Lloyd`s Rep 253). The same is not true of that Bareboat charter, under which the shipwreck charterers had obtained contractual and ownership rights over the ship and were entitled to have ownership transferred to them at the end of the charter period. BARECON users can expect BIMCO`s default rental party to be lighter and more concentrated when a new edition is released later in the year. „It is agreed between the seller and the buyer that in the event of delay by the buyer, due to non-payment of the rental money due to the owner or non-performance of any of the conditions agreed under this contract, the ship shall return the ship to the sellers, if it exists. at the end of the period, they were required to continue the purchase (instead of having a single call option). . . .