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Simple English definitions for legal terms
extraordinary average
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A quick definition of extraordinary average:
When we talk about "average," we usually mean a number that represents a group of things. It could be the mean, median, or mode of a series. But sometimes, there are special situations where everyone involved in a voyage has to share the cost of a loss or damage. This is called "extraordinary average." It's different from "general average," which is when everyone shares the cost of a sacrifice made to avoid a total loss. If there's just a partial loss or damage, it's called "particular average," and the person who suffered the loss has to pay for it alone. In the past, "average" also meant a service that a tenant had to do for their lord, but we're not exactly sure what that service was.
A more thorough explanation:
Definition: Extraordinary average is a contribution made by all parties involved in a commercial voyage towards a loss sustained by some of the parties for the benefit of all. It is an exception to the principle of particular average, which refers to accidental partial loss or damage.
Examples:
- General Average: This type of average results from an intentional partial sacrifice of ship or cargo to avoid total loss. The liability is shared by all parties who had an interest in the voyage. For example, if a ship is in danger of sinking and some cargo needs to be thrown overboard to lighten the load and save the ship, the cost of the lost cargo will be shared by all parties involved.
- Particular Average: This type of average results from accidental partial loss or damage. The liability is borne solely by the person who suffered the loss. For example, if a cargo container is damaged during transport due to rough seas, the cost of the damage will be borne by the owner of the cargo container.
These examples illustrate how extraordinary average works in maritime law. It is a way to distribute the cost of losses or damages among all parties involved in a voyage, rather than placing the burden solely on the party who suffered the loss. This helps to ensure that the cost of losses is shared fairly and equitably among all parties.