General Terms of Business
For agents and brokers who are Members of The Norwegian Shipbrokers’ Association
§ 1 Association
These General Terms of Business (the «Terms») apply to all assignments carried out by agents or brokers who are Members of the Norwegian Shipbrokers’ Association and who trade on these terms. In these Terms «the Member» means a member company of the Norwegian Shipbrokers’ Association and «the Principal» means the party appointing or entrusting the Member with an assignment as agent or broker.
§ 2 Performance of assignment as broker or agent
§ 3 Scope of agents’ assignment and instructions
§ 4 Limitation of Member’s liability
§ 5 Notice period for claims against the Member
§ 6 Payment of compensation, lien and set off
The Principal is responsible for payment of the agreed agency fee or brokerage commission to the Member. The Principal shall not be entitled to withhold payment to the Member if the Principal s counterparty fails to make payment to the Principal.
If the Member holds funds on behalf of the Principal, the Member shall be entitled to first ensure payment of his own claims against the Principal by way of set-off against such funds, before arranging payment of third party claims. Claims secured by maritime liens shall in any event not be paid until the Member s claims have been paid in full.
The Member shall have a charge or lien (håndpant eller tilbakeholdsrett) on all items which are in the custody of the Member or a third party, including but not limited to goods, machinery, equipment, bills of lading or other documents, as security for all claims that the Member may have against the Principal and all costs related to such goods or other items, including fees and storage. If the Principal fails to make payment, the Member shall, after due notice to the Principal (if possible), be entitled to sell in a satisfactory manner any such items or part thereof as may be required to cover the Member s claim including costs and interest.
§ 7 Member’s outlays and costs in respects of vessels
Should the Member grant an extension for payment of outlays and costs, he shall be entitled to charge a fee of 1½% for each period of 30 days or part thereof as from the date of departure of the vessel.
§ 8 Law and jurisdiction
Any dispute between the Principal and the Member shall be decided by the appropriate Norwegian court in accordance with Norwegian law.
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