Rule 55 Terms of contract

1. The Association shall not cover under a P&I entry liabilities, losses, costs or expenses:

   1. which would not have arisen but for the terms of a contract or indemnity entered into by the Member, or by some other person acting on its behalf, unless the terms have previously been approved by the Association, or cover for such liabilities, losses, costs or expenses has been agreed between the Member and the Association, or the Association decides, in its discretion, that the Member should be reimbursed;

   2. which result from, or would not have arisen but for the Member, or some other person acting on its behalf having used terms of contract which the Association has prohibited, or omitted to use terms of contract which are specified in Appendix VII or which the Association has otherwise prescribed.

   3. which arise out of or in connection with contracts for carriage wholly or partly by sea to the extent such liabilities, losses, costs and expenses would not have been incurred or borne by the Member but for its waiver or limitation of, or failure to incorporate, rights of recourse that would have been available under a bill of lading contract which incorporated

      1. Article IV Rule 6 of the Hague or Hague Visby Rules, or

      2. any equivalent provision under other applicable law,

provided that such liabilities, losses, costs and expenses shall not be excluded losses if such rights of recourse are not available by reason of mandatorily applicable law, or unless the Association in its discretion shall otherwise decide.