Appeal concerning a charter party that granted the charterer an option to purchase a vessel conditional on full performance of charter obligations.
A single lease payment was late because of bank error, then promptly cured with interest, and the owners later argued that deficiencies under payment and log-book clauses voided the option.
The majority held the lease and option formed a single bilateral contract, time was not made of the essence, and the substantial non-performance doctrine applied; the charterer had substantially complied and retained the option.
Concurring reasons would have required full performance as a matter of interpretation, but found the conditions satisfied or the owners estopped from relying on non-compliance.
Appeal allowed with costs.
