Charterparty Main Parts

Charterparty Main Components

  • Preamble
  • Main Terms
  • Rider Clauses

1- Preamble

Preamble: This section provides a basic introduction to the charterparty and covers:

  • Place of Contract Creation: The location where the charterparty is established is critical because, unless otherwise specified, any legal disputes related to the charter will be resolved under the laws of the country where the contract was signed. Typically, this is not the primary business location of the parties involved but rather where the lead broker operates.
  • Date of Charterparty: This marks the day when all negotiations are finalized and all conditions are agreed upon.
  • Names and Addresses of the parties entering the contract.
  • Ship Name: The name of the ship is always specified in the charterparty, and substitutions are not permitted unless explicitly agreed upon.

2- Main Terms (Printed Clauses)

Main Terms (Printed Clauses): These vary depending on the charterparty type and the specific trades they cater to. A significant amount of negotiation between Shipowners and Charterers focuses on which terms from the Printed Clauses should be omitted and replaced with Rider Clauses.

 

3- Rider Clauses (Additional Clauses)

Rider Clauses: These are clauses that have been specifically negotiated and agreed upon. In cases where there is a discrepancy between these and the printed terms in the Main Terms, the Rider Clauses take precedence. The number of Rider Clauses can vary greatly, influenced by the specific trade, the type of charter, the relationship between the contracting parties, and the need to modify the Printed Clauses.

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