Remedies for broker in case of breach of conditions
If a ship broker breaches any of their conditions, the principal may have a number of remedies available to them, including:
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Termination of the agency agreement: The principal may terminate the agency agreement, which will end the broker’s authority to act on their behalf.
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Damages: The principal may sue the broker for damages for any losses they have suffered as a result of the breach.
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Injunctive relief: The principal may seek an injunction to prevent the broker from continuing to breach their conditions.
The specific remedies that are available to the principal will depend on the nature of the breach and the circumstances of the case.
Here are some examples of breaches of conditions by a ship broker:
- The broker may fail to identify and source a suitable ship for the charterer.
- The broker may negotiate a charter contract that is unfavorable to the charterer.
- The broker may fail to keep the charterer informed of market developments or potential risks to their charter.
- The broker may fail to monitor the vessel’s performance or ensure that the shipowner is meeting their obligations under the charter contract.
- The broker may fail to resolve disputes between the charterer and the shipowner.
If a ship broker breaches any of their conditions, the principal should seek legal advice to determine the best course of action.
In addition to the above remedies, the principal may also be able to report the broker to the relevant industry body. For example, the Baltic Exchange has a number of disciplinary procedures in place for its members.
It is important to note that the broker may also have certain rights in the event of a dispute with the principal. For example, the broker may be entitled to commission on any charter contracts that they negotiate, even if the principal subsequently terminates the agency agreement.
It is therefore important for both the broker and the principal to have a clear understanding of their respective rights and responsibilities before entering into an agency agreement.