August 28, 2025
Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1961] EWCA Civ 7 (20 December 1961)
A ship chartered for two years was delivered unseaworthy, requiring 20 weeks of repairs. The charterers repudiated the contract. The court held the breach was not serious enough to justify termination, establishing the 'innominate term' concept where remedy depends on the breach's consequences. Facts The shipowners, Hong Kong Fir Shipping Co Ltd, chartered their vessel, the ‘Hongkong Fir’, to the charterers, Kawasaki Kisen Kaisha Ltd, for a period of 24 months. A term in the charterparty agreement stipulated that the vessel was to be ‘in every way fitted for ordinary cargo service’. However, upon delivery, the ship’s engines were in
