Trading companies that seek to insulate their shipping risk by allocating their chartering activities to a separate entity will be reassured by a recent judgment of the English Court, in which it was decided that a letter of indemnity was enforceable only against the entity which had issued it, and not against a connected entity (or their exporter clients) as supposed undisclosed principals.Continue Reading Keeping Risk at Arm’s Length – The Xing Zhi Hai [2024] EWHC 2371 (Comm)
The importance of email sign offs: the formalities of executing a parent company guarantee under the Statute of Frauds 1677
Despite living in an age of instantaneous correspondence and fast contractual negotiations, parties may still assume that promises as important as parent company guarantees, require detailed written documents, wet-ink, or e-signature signatures in order to be enforceable. The English Courts have recently reaffirmed that this is not the case.
SFL Ace 2 Co Inc v DCW Management Ltd (formerly Allseas Global Management Ltd) (the “M/V Green Ace”)Continue Reading The importance of email sign offs: the formalities of executing a parent company guarantee under the Statute of Frauds 1677