Exam Question

### (a) Essential Features of General Average
General Average is a principle of maritime law whereby all stakeholders in a sea venture (ship, cargo, freight) proportionally share any losses resulting from a voluntary and extraordinary sacrifice made, or expenditure incurred, for the preservation of the common venture from a common peril. The principle is codified in the York-Antwerp Rules. The statement "General average is based on certain essential features" is accurate, and these features are as follows:
1. **A Common Peril:** There must be a real, imminent, and substantial danger threatening the entire maritime venture. The peril must be common to the ship, its cargo, and the freight at risk. Examples include fire, grounding, heavy weather threatening to founder the vessel, or attack by pirates.
2. **A Voluntary and Deliberate Act (Sacrifice or Expenditure):** The loss must be the result of an intentional act, ordered or executed by the Master or on their authority. It cannot be an accident. This act is performed deliberately to avert the common peril.