Common Venture

Common Venture in Maritime Law

Note: There is more information on maritime/admiralty law here.

The following is a definition of Common Venture, produced by Tetley, in the context of admiralty law: A basic theme in maritime law, reflecting the understanding of maritime commerce as a joint undertaking on the part of shippers (see this maritime law term in this legal dictionary), carriers (see this maritime law term in this legal dictionary) and consignees (see this maritime law term in this legal dictionary); shipowners and charterers; and their respective insurers, who (directly or indirectly) confront the perils of the sea together, and who should therefore share both the profits and the risks attendant upon their combined operation. The common venture principle is evident in fields such as the carriage of goods (the Hague, Hague/Visby and Hamburg Rules (see this maritime law term in this legal dictionary) all providing for the sharing of risks of seagoing transportation as between shippers and consignees, on the one hand, and carriers on the other), as well as in general average (see this maritime law term in this legal dictionary) and marine insurance. The old Admiralty rule requiring damages to be divided equally in the event of a ship collision (see this maritime law term in this legal dictionary), was also founded upon the common venture concept. See Tetley, M.L.C., 2 Ed., 1998 at pp. 440, 473; Int’l C. of L., 1994 at p. 478; Tetley, Int’l. M. & A. L., 2003 at pp. 53-54.

Common Venture in Admiralty Law

For information on common venture in this context, see the entry on common venture in the maritime law encyclopedia.