As my shipping colleagues detail in their article below, the expanding EU, UK & US sanctions will affect yacht construction contracts in different ways:
- Force Majeure & Permissible Delay: are the sanctions an express force majeure event?
- Illegality: is performance of the contract now illegal under the local or chosen law?
- Frustration: is contractual performance now impossible?
- Failure to pay instalments or to take (or give) delivery: is the bank excluded from SWIFT and is there a ban on providing goods and services to the sanctioned?
- Rights to suspend or terminate: in case instalments unpaid or delivery prevented, and if contract terminated what of performance guarantees?
the web of international restrictions raises a number of important issues for parties involved in shipbuilding contracts to consider