Meritz Fire & Marine Insurance v Jan de Nul

摘要

The defendants were the buyers of three dredgers being built by a Korean shipyard, HWS. The buyers were obliged to make advance payments of the purchase price. Each of the three contracts provided in clause 17.1 that the buyers could immediately terminate the contract by notice in the event of default. Under clause 17.2, in the event of termination, the buyers had the right to demand repayment of all sums paid, plus interest and costs. In accordance with the shipbuilding contracts, on 1 September 2006 the claimant insurers, Meritz, agreed with HWS that it would provide the buyers with advance payment guarantees (APGs) for two of the contracts.