Project presentation:

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Project presentation A LEGAL VIEW ON SHIP
MANAGEMENT CONTRACTS Jeanette Andersson, Doctoral
student, LL.M. Department of law, University of
Gothenburg April 7, 2009
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The Ship Management Agreement

• The professional supply of a single or range of
  services by a management company separate from
  the vessels ownership where professional
  supply means that the supplier (ship manager)
  provides service(s) to the user (ship owner)
  according to contracted terms and in return for a
  management fee
• The ship manager is acting in the name of and on
  behalf of the shipowner.

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The Ship Management Agreement

• Outsourcing of management functions (split of
  functions)
• Technical
• Crew
• Provisions
• Accounting Services
• Purchasing
• Commercial
• Insurance Arrangements
• Sale and purchase

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The Ship Management Agreement

• Purposes
• Financial performance
• - Reduce costs
• - Increase revenue
• Financing business
• Resources

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The Ship Management Agreement

• Lack of contract law infrastructure (legal
  uncertainty)
• No legislation dealing with ship management
  contracts
• A few old and vague provisions regarding mandate
  contracts
• No service contracts legislation
• The Swedish Contracts Act covers a few general
  contractual issues and does not govern the
  internal relationship between a ship manager and
  a ship owner

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The Ship Management Agreement

• Standard Contracts
• - Shipman -98 (The BIMCO Standard Ship Management
  Agreement)
• General legal principles

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The Ship Management Agreement

• Research topics
• the managers duty of care
• the managers responsibility concerning the
  result
• the managers duty to co-ordinate his efforts
• the relation between these duties and the budget
  and management fee

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The Ship Management Agreement

• Existing provisions
• Denationalised method
• Shipman -98
• International set of contract law principles
• Cross-principle method
• General transport/maritime law principles
• General contract law principles

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Thank You for Your Attention!