Legal Definitions - general-average contribution

Definition: General-average contribution is a term used in maritime law to refer to a contribution made by all parties involved in a commercial voyage, whether for the vessel or cargo, towards a loss sustained by some of the parties for the benefit of all. It is also known as gross average or general-average contribution.

Examples: If a ship is in danger of sinking, the captain may decide to intentionally sacrifice some of the cargo to save the rest of the ship and its remaining cargo. In this case, the loss is considered a general average loss, and all parties involved in the voyage, including the ship owner, cargo owner, and insurers, must contribute to cover the cost of the loss. This contribution is known as a general-average contribution.

Another example of general-average contribution is when a ship is stranded and needs to be refloated. The cost of refloating the ship is considered a general average loss, and all parties involved in the voyage must contribute to cover the cost.

Explanation: General-average contribution is a way to distribute the cost of a loss or expense among all parties involved in a commercial voyage. This ensures that the burden of the loss is shared fairly among all parties, rather than falling solely on the party that suffered the loss. The examples illustrate how general-average contribution works in practice and how it can be applied in different situations.