Without Guarantee WOG in Charter Party

Use of the Term ‘Guarantee’. It is not unusual for the charter party description clause to ‘guarantee’ the performance of the vessel or of an item of her equipment, such as the pumping rate achieved by the pumps on an oil tanker. However, the use of the term ‘guarantee’ does not necessarily mean that the description in question qualifies as a ‘condition’ of the contract. In the case of Pennsylvania Shipping v Cie Nationale de Navigation (1936) Branson, J., stated: ‘I think that the word “guarantee” … shows an intention to lay a special emphasis upon the obligations assumed under these clauses and to treat them as conditions of the contract as distinguished from mere warranties.’ However, in The YMNOS [1982]  the ship was time chartered for the charterers’ container services. The charter contained the following term: ‘owners guarantee the loading of the containers … without any stability problem.’ There were in fact very severe stability problems, the vessel listing by as much as 15 degrees as a container was discharged (or loaded) by the vessel’s cranes and then swinging by a similar list on the other side after the movement of the container had ceased. It was held that the above provision in the contract was no more than an intermediate term, not a condition.