LETTER OF UNDERTAKING AND THE ROLE OF PROTECTION AND INDEMNITY CLUBS

Document Type : Research Paper

Authors

1 Assistant Professor, Faculty of Law and Politics, University of Tehran, Iran

2 LLM in International Trade and Economic Law, Faculty of Law and Politics, University of Tehran, Iran

Abstract

Merchant vessels may be arrested for various reasons, often by the claimant in order to secure their relief, especially in actions relating to bodily injuries, property damages and collisions. While the ship is under arrest, ship-owner has duty to pay necessary and irrevocable expenses. On the other hand, the ways of release of the vessel for the ship-owner are not a lot. Ship-owner may, for example by tendering a bail bond or paying the money (often with the calculation of punitive damages), release the ship from arrest. One of the ordinary methods to release the vessel and to have the permission to continue its activity is to get a letter of undertaking issued by the protection and indemnity clubs to the claimant. This paper with descriptive and analytical perspective is to introduce the letter of undertaking, express its object, benefits, form, legal nature, requirements for achieving it, the subject of acceptance and non-acceptance of the letter of undertaking with regard to the claimants and the courts views and finally the effects of this type of letters.

Keywords

References

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Law Quarterly
Volume 47, Issue 1
April 2017
Pages 65-82

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