The principal of a ship manager had taken delivery of a number of new buildings. Some of the ships were subject to a “sale and charter back” agreement. The principal had indicated he would consider an offer for any of the ships that were not subject to the “sale and charter back” agreement. A potential buyer approached the manager’s commercial department. They discussed one particular ship and the manager arranged for an inspection. Representatives of the potential buyer travelled from Europe to Japan to view the ship. Unfortunately, at that point the commercial department realised that the ship in question was one of the ones subject to the “sale and charter back” agreement and was not for sale. The buyer’s representatives sent them an invoice for US$ 12,000 for wasted expenses.