Commission covered

Sale and purchase brokers concluded an MOA. Shortly afterwards a mooring line was caught in the ship’s propeller and the ship could not make the laycan in the MOA.

The ship was dry docked for repairs. Buyers and sellers agreed to a new laycan with compensation for the delay.

However during sea trials the ship had a gearbox breakdown and had to go back into dry dock for repairs. The ship could not be ready for the revised laycan. A third laycan was therefore agreed against a further compensation.

The ship sailed from dry dock and then experienced an oil leak in the steering gear. Class advised that it was a condition of Class and that the ship would have to be repaired.

The ship therefore would not make the third agreed laycan and buyers cancelled the agreement. The ship broker would have earned commission of US$ 115,000 from the sale. They had purchased ITIC’s loss of commission cover.

The lost commission was therefore paid by ITIC.