Exploring the Bigham Clause: Legal Insights and Implications

Q: How does the Bigham Clause protect cargo owners?

It ensures that their contribution does not exceed the cost they would incur for retrieving their cargo at a port of refuge.

Q: Is the Bigham Clause applicable in all shipping agreements?

No, it specifically applies to non-separation agreements.

Definition & Meaning

The Bigham Clause is a provision commonly included in non-separation agreements related to maritime law. This clause ensures that the financial contribution a cargo owner must pay in the event of a general average situation is limited. Specifically, it states that the cargo owner's share of any costs cannot exceed the amount they would have paid if their cargo had been delivered to them at a designated port of refuge and subsequently sent to its final destination at their own expense.

Table of content

Legal Use & context

The Bigham Clause is primarily used in maritime law, particularly in cases involving shipping agreements and cargo transportation. It plays a crucial role in non-separation agreements, which are contracts that outline the responsibilities and liabilities of parties involved in shipping. Users may find relevant legal forms to draft or review such agreements through resources like US Legal Forms, which offers templates created by experienced attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A shipping company faces a general average situation due to a storm at sea. The Bigham Clause in their non-separation agreement stipulates that the cargo owner's contribution to the costs will not exceed what it would have cost them to retrieve their cargo at a safe port and send it to its destination.

Example 2: A cargo owner is charged for damages during transit. The Bigham Clause protects them by ensuring that their liability is capped at the cost of delivering their cargo to a port of refuge, rather than the total damages incurred. (hypothetical example)

Comparison with related terms

Term	Definition	Key Differences
Bigham Clause	A clause limiting cargo owner's contribution in general average situations.	Specifically applies to non-separation agreements.
General Average	A principle in maritime law where all parties share losses resulting from a voluntary sacrifice of part of the ship or cargo.	General average applies broadly, while the Bigham Clause is a specific limitation on liability.

Common misunderstandings

What to do if this term applies to you

If you are involved in a shipping agreement that includes a Bigham Clause, it is essential to understand your rights and obligations. Review the agreement carefully to see how it impacts your financial responsibilities in case of a general average situation. Consider using US Legal Forms to access templates for drafting or modifying agreements. If your situation is complex, seeking advice from a legal professional is advisable.

Find the legal form that fits your case

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Commonly used in maritime contracts.
Limits cargo owner's contribution to general average costs.
Ensures fair treatment in financial liabilities.

Key takeaways

Frequently asked questions

What is a Bigham Clause?

A Bigham Clause is a provision in non-separation agreements that limits a cargo owner's financial contribution in general average situations.