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General Yacht Charter Terms & Conditions. Please make sure that you sign a contract for your charter with all the terms and conditions that apply. The terms below are a general description of a charter agreement.
DELIVERY
THE OWNER shall at the beginning of the charter period deliver the yacht to the Port of Delivery and the charterer shall take delivery in full commission and working order, seaworthy, clean, in good condition throughout and ready for service, with full equipment, including up-to-date safety and life-saving equipment (including life-jackets for children if any are carried in the charterers party), as required by the yachts registration authority and fitted out as appropriate for a yacht of her size and type and enabling the charterer to use the yacht as set out in clause 13.
RE-DELIVERY
The charterer will re-deliver the yacht to THE OWNER at the Port of Re-Delivery free of any debts incurred for the charterers account during the charter period and in as good a condition as when delivery was taken, except for fair wear and tear arising from ordinary use. The charterer may, if he or she wishes, re-deliver the yacht to the Port of Re-Delivery and disembark prior to the end of the charter period but such early re-delivery shall not entitle the charterer to any refund of the charter fee.
CRUISING AREA
The charterer shall restrict the cruising of the yacht to within the cruising area and to within the regions in the cruising area in which the yacht is legally permitted to cruise. The charterer shall also restrict time underway to an average of six (6) hours per day, unless the Captain (Skipper), at his sole discretion, agrees to exceed this time.
MAXIMUM NUMBER OF PERSONS – RESPONSIBILITY FOR CHILDREN-HEALTH OF THE CHARTERER’S PARTY
The charterer shall not at any time during the charter period permit more than the maximum number of guests sleeping or cruising on board plus, at the sole discretion of the Captain (Skipper), a reasonable number of visitors whilst the yacht is securely moored in port.
If children are taken on board, the charterer shall be fully responsible for their conduct and entertainment and no member of crew shall be held responsible for their conduct or entertainment.
The nature of a charter may render it unsuitable for anybody with physical disability or undergoing medical treatment. By signature of this agreement the charterer warrants the medical fitness of all members of the charterer’s party for the voyage contemplated by this agreement. The charterer and their party undertake to have all necessary visas and vaccinations for the countries to be visited.
CREW
THE OWNER shall provide a suitably qualified Captain (Skipper) acceptable to the insurers of the yacht and suitably experienced crew, fed and insured. THE OWNER shall ensure that the Captain (Skipper) and crew comply with the laws and regulations of any country into whose waters the yacht shall enter during the course of this agreement.
CAPTAIN’S (SKIPPER’S) AUTHORITY
THE OWNER shall ensure that the Captain (Skipper) shows the charterer’s the same attention as if the charterer were the owner. The Captain (Skipper) shall comply with all reasonable orders given to him by the charter regarding the management, operation and movement of the yacht, wind, weather and other circumstances permitting. The Captain (Skipper) shall not, however, be bound to comply with any order which, in the reasonable opinion of the Captain (Skipper), might result in the yacht moving to any port or place that is not safe or proper for her to be in, or might result in the charterer failing to re-deliver the yacht upon the expiration of the charter period, or would, in the reasonable opinion of the Captain (Skipper), cause a breach of clause 13 and / or any other clause of this agreement. Further, without prejudice to any other remedy of THE OWNER, if, in the reasonable opinion of the Captain (Skipper), the charterer or any of his or her guests fail to observe any of the provisions in clause 13 and if such failure continues after the Captain (Skipper) has given due a specific warning to the charter in writing in respect of the same, the Captain (Skipper) shall inform THE OWNER and we may terminate the charter forthwith or instruct the Captain (Skipper) to return the yacht to the Port of Re-Delivery and upon such return the charter period shall be terminated. The charterer and his or her guests shall disembark, the charterer having settled all outstanding expenses with the Captain (Skipper) beforehand and the charterer shall not be entitled to be refunded any of the charter fee
OPERATING COSTS
The charterer shall be responsible for the operating costs, as specifically defined under the conditions on page one (1) of this agreement, for the entire charter period for him or herself and guests. Should an Advance Provisioning Allowance (A.P.A.) be paid at time of transfer with the charter fee or handed in Euros to the Captain (Skipper) on boarding, then THE OWNER shall ensure that the Captain (Skipper) will exercise due diligence in the expenditure of these funds. The charterer will also be advised by the Captain (Skipper), at intervals throughout the charter period, as to the disbursement of the A.P.A. and shall, if the balance remaining comes insufficient, in the light of current expenditure, pay to the Captain (Skipper), a sufficient further amount to maintain an adequate credit balance. Prior to disembarkation at the end of the charter period, the Captain (Skipper) will provide the charterer with a detailed account of all monies spent (with receipts where possible) and shall repay to the charterer any balance overpaid, likewise the charterer will pay to the Captain (Skipper) prior to disembarkation the balance of any expenses the Captain (Skipper) has allowed to be outstanding. Due to the itinerant nature of the yachts seasonal schedule, THE OWNER cannot accept payment of the A.P.A by cheque, credit card or other negotiable instrument, the charterer should therefore ensure that they have sufficient funds available in local currency to cover all reasonably foreseeable expenses or arrange to deposit additional cleared funds with THE OWNER prior to charter commencement. Should the charterer opt not to pay an A.P.A. then they will be responsible for arranging and paying all costs incurred during the charter period direct with the suppliers of any services or goods received and will be responsible for provisioning the yacht to their satisfaction on charter commencement.
DELAY IN DELIVERY
If, by reason of force majeure (as defined in clause 15 (a.)), THE OWNER fails to deliver the yacht to the charterer at the Port of Delivery at the commencement of the charter Period and delivery is made within forty eight (48) hours of the scheduled commencement date, or within one tenth (1/10th) of the charter period, whichever period is the shorter, THE OWNER shall pay too the charterer a refund of the charter fee at a pro rata daily rate or of it is mutually agreed, THE OWNER shall allow a pro rata extension of the charter period.
FAILURE TO DELIVER
If by reason of force majeure THE OWNER fails to deliver the yacht within forty eight (48) hours or a period equivalent to one-tenth (1/10th) of the charter period, whichever period is the shorter, from the due time of delivery, the charterer shall be entitled to treat this contract as terminated. The charterer’s exclusive remedy will be to receive repayment without interest of the full amount of payments made by him to THE OWNER. Alternatively if both parties mutually agree, the charter period shall be extended by a time equivalent to the delay.
If for any other reason, THE OWNER fails to deliver the yacht to the Port of Delivery at the commencement of the charter period, the charterer will be entitled to treat this agreement as repudiated by THE OWNER and will be entitled to immediate repayment without interest of the full amount of all payments made to THE OWNER, or if the parties mutually agree, the charterer to have use of a similar or upgrade available yacht at no extra cost to his or her charter party for the duration of the charter period.
CANCELATION BY The Owner
If prior to the commencement of the charter period as set out on page one (1) of this agreement, THE OWNER tenders notice of cancellation to the charterer and if that cancellation is by reason of force majuere, the remedy in (b.) above shall apply.
If the cancellation is for any other reason, the charterer shall be entitled to repayment without interest of the full amount of all payments made by him to THE OWNER, and shall in addition be entitled to liquidated damages to be calculated and paid forthwith on the following scale:
1. Thirty (30) days or more before commencement of the charter period, an amount equivalent to ten percent (10%) of the charter fee.
2. More than fourteen (14) days but less than thirty (30) days before charter commencement, an amount equivalent to fifteen percent (15%).
3. Fourteen (14) days or less before charter commencement of the charter period, an amount equivalent to twenty percent (20%) of the charter fee.
DELAY IN RE-DELIVERY
If re-delivery of the yacht is delayed by reason of force majuere, re-deliver shall be effected as soon as possible thereafter and in the meantime the conditions of this agreement shall remain in force but without penalty or additional charge against the charterer.
If the charterer fails to re-deliver the yacht to THE OWNER at the Port of Re-Delivery due to international delay or change of itinery against the Captain’s (Skipper’s) advice, then the charterer shall pay forthwith to THE OWNER by direct telegraphic transfer demurrage at the daily rate plus forty percent (40%) of the daily rate, and if the delay exceeds twenty four (24) hours, the charterer may be liable to indemnify THE OWNER for any loss or damage which THE OWNER shall suffer by reason of deprivation of use of the yacht, or cancellation of, or delay in delivery under any subsequent charter of the yacht.
CANCELLATION BY CHARTERER
Should the charterer give notice of cancellation of this agreement on or at any time before the commencement of the charter period the charterer shall remain liable for all payments due to the THE OWNER prior to and unpaid at the date of cancellation. Should notice of cancellation be given by the charterer or should the charterer fail after having been given notice to pay any amount due under this agreement, THE OWNER shall be entitled to treat this agreement as having been repudiated by the charterer and to retain the full amount of all payments.
Notwithstanding THE OWNER’s right to receive or retain all payments referred to above, THE OWNER shall be under a duty to mitigate our loss and in the event that THE OWNER is able to re-let the yacht for all or part of the charter period under this agreement, THE OWNER will give credit for the net amount of charter hire arising from the re-letting after deduction of consequential expenses arising from the re-letting. The intention is that THE OWNER shall receive the same in net proceeds from any re-letting as we would of received under this agreement. We will use our best endeavours to re-let the yacht and shall not unreasonably withhold this agreement to re-let, although charters, which may reasonably be considered detrimental to the yacht, its reputation, its crew or its schedule, may be refused.
If prior to the date of cancellation the yacht has taken on provisions for the charter, or has utilised the delivery/re-delivery fee as/if set out on page one (1) of this agreement, then the charterer shall pay for these expenses unless all or part can either be refunded by the supplier or transferred to the next charter, in which case they shall be adjusted accordingly. The Captain (Skipper) and THE OWNER shall be under a duty to mitigate these expenses where possible.
BREAKDOWN OR DISABLEMENT
If after delivery the yacht shall at any time be disabled by breakdown of machinery, grounding, collision or other cause so as to prevent reasonable use of the yacht by the charterer for a period between twelve (12) and forty eight (48) consecutive hours or one tenth (1/10th) of the charter period, whichever is shorter (and the disablement has not been brought on by any act or default of the charterer) THE OWNER shall make a pro rata refund of the charter fee for the period of the disablement or if mutually agreed, allow a pro rata extension of the charter period corresponding with the period of disablement. If the charterer wishes to invoke this clause he or she shall give immediate notice in writing to the Captain (Skipper). The charterer shall remain liable for normal expenses during the period of disablement.
In the event of the actual or consecutive total loss of the yacht or if the yacht is disabled as aforesaid for a consecutive period of more than forty eight (48) hours or one tenth (1/10th) of the charter period, whichever is the shorter, the charterer may terminate this agreement by notice in writing to the Captain (Skipper). As soon as practicable after such termination the charter fee will be repaid by THE OWNER pro rata without interest for that proportion of the charter period outstanding after the date and time on which the loss or disablement occurred. In the event of such termination the charterer may affect redelivery by giving up possession of the yacht where she lies. The charterer shall be entitled to re-cover from THE OWNER the reasonable cost of returning the charter party to the port of re-delivery by scheduled services together with reasonable accommodation expenses incurred.
Alternatively, after a consecutive period of disablement of more than forty eight (48) hours or one tenth (1/10th) of the charter period, whichever the shorter, and dependant on the nature and seriousness of the disablement, by mutual agreement the charterer may elect to remain on board for the duration of the charter period and the charterer will then have no further or additional claim against THE OWNER
USE OF THE YACHT
The charterer shall comply, and shall ensure that the guest comply, with the laws and regulations of any country into whose waters the yacht shall enter during the course of this agreement.
The charterer shall ensure that no pets or other animals are bought on board the yacht without the consent in writing of THE OWNER. The charterer shall ensure that the behavior of the charter party shall not cause nuisance to any person or bring the yacht into disrepute. The charterer and the guests shall afford the crew due respect at all times.
The Captain (Skipper) shall promptly draw the charterer’s attention to any infringement of those terms by him or herself or guests, and if such behavior continues after this warning, the Captain (Skipper) shall inform us and a director of THE OWNER may, by notice to the charterer, terminate this agreement in accordance with clause 7 of this agreement.
If the charterer or any of the guests shall commit any offence contrary to the laws and regulations of any country which results in any member of the yachts crew being detained, fined or imprisoned, or the yacht being detained, arrested, seized or fined, the charterer will indemnify THE OWNER against all loss, damage and expenses incurred by THE OWNER as a result, and a director of THE OWNER may, by notice to the charterer, terminate this agreement forthwith.
It is also specifically understood that the possession or use of any illegal drugs or weapons (including particularly firearms) is strictly prohibited on board the yacht and failure to comply shall be sufficient reason for THE OWNER to terminate the charter forthwith without refund or recourse against us.
INSURANCE
THE OWNER shall insure the yacht with first class insurers against all customary risks for a yacht of her size and type on cover no less than is provided under institute yacht clauses 1.11.85 or other recognised terms extended to provide permission to charter and to cover third party liability for use of her tender and any other water sport equipment she may have on board. The insurance will also cover war and strikes and include insurance for crew against injuries and / or third party liabilities incurred during the course of their employment. The charterer shall be entitled to the benefit of THE OWNER’s insurances.
All such insurances shall be on such terms and subject to such excess (Deductible) as are customary for a yacht of her size and type. Copies of all relevant insurance documentation are carried on board the yacht at all times.
Under normal circumstances the charterer will only be liable for such costs or losses as may be incurred repairing damage caused by the charterer or guests (international or otherwise) to the yacht or any third party up to the level of the excess (Deductible) on our insurance policy for each separate accident or occurrence. However, in any event, the charterer’s liability shall not exceed an excess (deductible) the equivalent of one percent (1%) of the total sum insured.
The charterer may be liable for a sum greater than the excess (deductible) on any one accident or occurrence if the charterer or guests acted in such a manner (internationally or otherwise) as to void, or limit, the cover under our insurance policy.
The charterer shall carry independent insurance for personal effects whilst on board or ashore and for any medical or accident expenses incurred other than as covered under the yachts insurance.
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