Legal Definitions - memorandum articles

Memorandum articles refer to goods that are described in the memorandum clause of a marine insurance policy. The memorandum clause is a provision that protects underwriters from liability for injury to goods that are particularly perishable or for minor damages.

For example, let's say a shipping company wants to insure a shipment of fresh fruits and vegetables. The memorandum clause in the marine insurance policy may specify that these perishable goods are exempt from average under a given rate, unless there is a general average or the ship is stranded. This means that if there are any small partial losses, they will be borne by a general average, provided they were incurred in a case proper for such an average.

The memorandum clause was first introduced into English marine insurance policies in 1749. Before that time, insurers were liable for every injury, no matter how small, that happened to the insured goods. The memorandum clause provides a way for underwriters to limit their liability for certain types of goods, while still providing coverage for more significant losses.