HopefullyInLawSchool
16:06
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
general-average statement
Read a random definition: flat tax
A quick definition of general-average statement:
A general-average statement is a document that shows how much each person involved in a maritime voyage needs to contribute towards any losses or damages that occurred during the journey. This includes intentional sacrifices made to prevent total loss. It is a fair way to share the costs of unexpected events that affect the ship or cargo. If there is accidental damage or loss that is not intentional, it is called particular average, and the person who suffered the loss is responsible for the costs. The general-average statement is an important part of maritime law and helps ensure that everyone involved in the voyage shares the burden of unexpected events.
A more thorough explanation:
A general-average statement is a document in maritime law that contains a precise calculation of the general average and the contributory share of each party involved in a commercial voyage. It is used to determine the amount of compensation that each party must pay in case of accidental partial loss or damage to an insured ship or its cargo during a voyage.
For example, if a ship carrying cargo encounters a perilous situation, and the captain decides to jettison some of the cargo to save the ship and the rest of the cargo, the loss incurred by the jettisoned cargo is considered a general average. The general-average statement will then be used to calculate the amount of compensation that each party must pay based on their share of the total value of the ship and the cargo.
The doctrine of general average is an equitable principle derived from the general maritime law. It is an exception to the principle of particular average, which states that losses lie where they fall, and the liability is borne solely by the person who suffered the loss. In contrast, the doctrine of general average spreads the loss ratably among all the parties involved in the maritime adventure.