Y2K Clauses: Don't Promise Too Much
Friday, September 17, 1999
While charterparties are, to a large extent based on standard forms, they are also subject to the inclusion of many amendments and additional clauses. These clauses need to be scrutinized with care, as their implications may be more far reaching than initially envisaged. The additional clauses and their effect are also often less well known than the provisions in the standard forms.
For some time clauses dealing with possible Y2K problems have been appearing in the market. INTERTANKO is concerned that some clauses require guarantees that an operation is Y2K-compliant. The problem is that in practice it is nearly impossible for any business to know that they are indeed 100 percent Y2K-compliant. In an article in INTERTANKO's September 1999 Tanker Charter Party Circular the Association has highlighted the dangers of giving guarantees that cannot be fulfilled when it comes to Y2K conformity clauses.