Vessel Charter Agreement

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Vessel Charter Agreement Powered By Docstoc
					This is an agreement between a vessel owner and a party that wants to charter a
vessel. This agreement defines the rights and responsibilities of the parties by
establishing the cost per day, which party bears the risk of loss, the delivery date, and
whether a crew is included. This document contains numerous standard provisions that
are commonly included in these types of agreements, and may be customized to fit the
specific needs of the contracting parties. This agreement may be used by individuals or
entities that want to enter into an agreement for the charter of a vessel.
                       VESSEL CHARTER AGREEMENT
This Vessel Charter Agreement (the “Agreement”) made and entered into on this ____ day
___________________, 20___ [Instruction: Insert Date], by and between ______________
[Instruction: Insert Owner Name], _____________________ [Instruction: Insert Address]
(hereinafter referred to as “Owner”), and ______________ [Instruction: Insert Charterer
Name], _____________________ [Instruction: Insert Address] (hereinafter referred to as
“Charterer”).

WHEREAS, the Owner owns the vessel described in paragraph1 hereof, (hereinafter referred to
as the “Vessel”);

WHEREAS the Charterer desires to charter the Vessel on hire from the Owner; and

WHEREAS, the Owner is willing to make the Vessel available to the Charterer, subject to the
terms and conditions contained herein.

NOW THEREFORE, in consideration of the premises, the mutual covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

1. DESCRIPTION OF THE VESSEL

   A. Name: _____________________ [Instruction: Insert Name]

   B. Registration Number: _____________________ [Instruction: Insert Reg. No.]

   C. Age: _____________________ [Instruction: Insert Age]

   D. Value: _____________________ Dollars ($_______) [Instruction: Insert Value]

   E. Length: _____________________ [Instruction: Insert Length]

   F. Beam: _____________________ [Instruction: Insert Beam]

   G. Mean draft: _____________________ [Instruction: Insert Mean Draft]

   H. Maximum capacity: _____________________ [Instruction: Insert Max. Capacity]

   I. Last inspection: _____________________ [Instruction: Insert Date]

2. TERM AND PAYMENT

    A. Charterer hereby hires from the Owner, the Vessel for a period of ________ (___) days
[Instruction: Insert Duration], commencing on ______________ [Instruction: Insert Date]
and concluding on ____________ [Instruction: Insert Date] (the “Charter Period”) for the sum


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of ______________ Dollars ($_____)[Instruction: Insert Amount]per day (cumulatively, the
“Charter Fee”), payable to Owner upon execution hereof, without any deduction or offset.

    B. If Charterer, for any reason whatsoever, cancels its booking, Owner may retain any
portion of the Charter Fee then paid as liquidation damages. In the event that Owner is able to
rebook the Vessel, to any third party, Owner shall refund to Charterer such Charter Fee less a
cancellation fee equal to _____________ percent (____%) [Instruction: Insert Percent] of the
total Charter fees.

3. SECURITY DEPOSIT

In addition to the Charter Fee, upon the execution of this Agreement, Charterer shall also pay
Owner a security deposit in the amount of ______________ Dollars ($_____) [Instruction:
Insert Deposit Amount], which shall serve as security for performance of Charterer's
obligations hereunder

4. DELIVERY AND LOCATION

    A. Owner shall deliver the Vessel to the Charterer upon commencement of the Charter
Period, in a clean and good and properly working order, with full equipments, inclusive of that
required by law. If the Owner is unable to deliver the Vessel as stipulated herein for causes
beyond Owner’s control and if delivery is not made within twenty four (24) hours thereafter,
Charterer may cancel this Agreement and Owner, as Charterer’s sole remedy, shall refund to
Charterer any charter money paid in advance.

   B. The vessel will be permanently docked at _________________ [Instruction: Insert
Address] (the “Location”). Charterer shall give owner ten (10) days’ written notice of any
change in permanent docking of the vessel, and owner shall have the right to approve any
proposed change in location, such approval not be unreasonably withheld.

5. INSPECTION AND ACCEPTANCE

    A. Prior to acceptance of the Vessel, Charterer shall have the right to inspect the Vessel, and
have the Vessel surveyed by an independent, qualified, marine surveyor. In the event that the
surveyor reports that the Vessel is not seaworthy, Owner will remedy such conditions at Owner's
expense.

    B. Upon acceptance of the Vessel, the Charterer acknowledges that the Vessel is in good
and seaworthy condition, fit for the use by the Charterer. The Charterer further acknowledges
that the Vessel is of size, design, and capacity suitable for Charterer's use.

6. SAFETY EQUIPMENT AND CREW

The Owner agrees to provide the Vessel equipped with all safety equipment required by the
United States Coast Guard, and a properly qualified captain and crew, adequate for the safety of
the Vessel and all other persons related to the operation of the Vessel, consisting of at least, but


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not limited to, a captain, chef and steward. The Captain shall be competent in both inland and
coastwise navigation, and hold an appropriate captain’s license.

7. EXPENSES

During the Charter Period the Charterer shall pay all provisioning and running expenses
including but not limited to expenses for food, liquor, fuel, harbor fees and dockage,
communication expenses, and any other required or requested supplies or services.

8. DRUGS

Use or possession of illegal drugs, including marijuana, on board of the Vessel shall result in
immediate termination of the Charter with forfeiture of the Charter Fee paid.

9. RETURN OF VESSEL

    A. The Charterer shall return the Vessel at the expiration of the Charter Period, free and
clear of any indebtedness and in as good a condition as when taken, fair wear and tear from
ordinary use, or for any loss or damage are excepted. Charterer assumes all risk of loss of or
damage to the vessel.

    B. Notwithstanding the foregoing, During the Charter Period, if the Vessel is lost, stranded,
damaged or disabled by an act of God, fire, perils of the sea, collision or other cause rendering
the Vessel unfit for the use of the Charterer, the same not being brought about by any act or fault
of the Charterer, this Agreement shall cease from the time thereof and the Charterer shall have
the right to terminate the Agreement and the amount paid by him for the hire of the Vessel shall
be refunded by the Owner pro-rata from the time of such loss or damage.

10. MISCELLANEOUS

    A. The Owner agrees to keep the Vessel insured against fire, damage, marine collision risks
and hazards of the voyage, including engine, hull and vessel equipment, for any and all casualty
and loss or damage that may occur to or be suffered by the Vessel for the full term of the Charter
Period. The Charterer is hereby relieved and discharged from any and all liability for such loss
and damage. It is hereby agreed and expressly understood that the Charterer is not the agent,
servant or employee of the Owner in any way whatsoever, and that the Owner shall not be
responsible for any injuries or damages caused by the Charterer or any member of his party. The
Owner advises the Charterer to have an additional insurance for himself, his guests and also
against third parties.

    B. Charterer shall not assign this Agreement nor sub-charter the Vessel without the prior
written consent of Owner. As provided herein, all of the terms and provisions of this Agreement,
whether expressed or not, shall be binding upon and inure to benefit of, and be enforceable by
the parties and their representatives, heirs and permitted assigns.




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    C. This Agreement shall be interpreted under the laws of the State of
______________________, [Instruction: Insert State], applicable to agreements to be wholly
performed therein, with jurisdiction exclusive to the Federal and State courts located in the
County of _____________ [Instruction: Insert County], State of ______________
[Instruction: Insert State], and the parties hereto irrevocably consent to the jurisdiction of such
courts.

    D. This Agreement constitutes the entire agreement among the parties, and it supersedes any
prior agreement or understanding among them, oral or written, all of which are hereby cancelled.
This Agreement may not be modified or amended other than by a written document signed by
both parties.

    E. In any action or proceeding arising out of this Agreement, the prevailing party shall be
entitled to recover all of its costs incurred in such action, including reasonable attorney’s fees.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and
year first above written.

CHARTERER:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]
Title: ___________________________ [Instruction: Insert Title of Signatory]


OWNER:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]
Title: ___________________________ [Instruction: Insert Title of Signatory]




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DOCUMENT INFO
Description: This is an agreement between a vessel owner and a party that wants to charter a vessel. This agreement defines the rights and responsibilities of the parties by establishing the cost per day, which party bears the risk of loss, the delivery date, and whether a crew is included. This document contains numerous standard provisions that are commonly included in these types of agreements, and may be customized to fit the specific needs of the contracting parties. This agreement may be used by individuals or entities that want to enter into an agreement for the charter of a vessel.