본문 바로가기
  • Home

A Study on Legal Nature of BBCHP under Legal Structure of Ship Finance

  • Journal of International Business Transactions Law
  • Abbr : IBT
  • 2015, (13), pp.101-132
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law > Private Law > International Commercial Transactions Law

Dae Chung 1

1한국해양대학교

Candidate

ABSTRACT

Ship finance or shipping finance is closely related to shipping industry, shipbuilding industry and banking industry. A ship is the most important asset in a shipping company. Therefore, the executives of shipping company should make a prudent decision in respect of shipbuilding because shipbuilding is long-term and price of ship is very expensive. Ship finance has an international character and is closely related to various and complex contracts. Legal structure of ship finance, therefore, includes a shipbuilding contract, a contract for carriage by sea, a marine insurance contract and a loan agreement. As a kind of a contract for carriage by sea, a bareboat charter hire purchase (BBCHP) plays an important role in ship finance. BBCHP is made under the BIMCO BARECON 2001 according to a principle of a freedom of contracts. In respect of BBCHP, there are two main legal issues. First of all, there are a lot of legal arguments over the legal nature of BBCHP. Even though BBCHP may be considered as financial lease, the essence of BBCHP is sales contract on the long-term installment. In addition, the Korea Supreme Court has consistently held that BBCHP is sales contract on the long-term installment. Secondly, there are many legal theories over BBCHP under the Debtor Rehabilitation and Bankruptcy Act in Korea. Under the rehabilitation proceedings, BBCHP should be viewed as a bilateral contract that is not fulfilled by both parties even though shipowner's legal status may be considered as a security right holder.

Citation status

* References for papers published after 2022 are currently being built.