In the landmark decision of Grand China vs. Spar Shipping, the Court of Appeal confirmed that, in the absence of an express term, a charterer's failure to pay hire punctually is not a breach of a condition (which would entitle the shipowner at law to terminate the charterparty, withdraw the vessel and claim loss of bargain damages).  Further, a contractual termination right exercisable upon such non-payment will not alter this conclusion, without more.  The decision raises important considerations for shipowners and for other parties involved in asset lease financings.

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