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Charter Out

6 February 2011

Last revised

minutes

5

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There are two basic types of charter: those where the crew is provided by the owner and those where it is up to the charterer to provide the crew (known as ‘bareboat’ charters). Because of the complex crew certification requirements, larger yachts are rarely bareboat chartered although they may be the subject of such a charter as part of a complex finance and/or tax avoidance scheme.

minutes

5

Reading time

6 February 2011

Last revised

There are two basic types of charter: those where the crew is provided by the owner and those where it is up to the charterer to provide the crew (known as ‘bareboat’ charters). Because of the complex crew certification requirements, larger yachts are rarely bareboat chartered although they may be the subject of such a charter as part of a complex finance and/or tax avoidance scheme.

  • Bareboat charters make the charterer responsible for crew actions and liabilities.

  • Implied terms include yacht seaworthiness and compliance with descriptions.

  • Yacht age doesn't excuse outdated safety and navigational equipment.

  • Breach of charter terms may lead to charter termination or damages.

  • Charterers can give instructions on the yacht's destination but not on seamanship matters.

  • Charter rates may include additional expenses; attention to terms is important.

  • Insurance is required for liabilities caused by the charterer; compliance with policies is crucial.

  • Redelivery of the yacht must be prompt to avoid additional charges.

  • Captains may have authority to make contracts on behalf of the owner.

  • Owners should consider national and regional laws before placing a yacht on the charter market.

  • Charter rates may include additional expenses; attention to terms is important.

  • Insurance is required for liabilities caused by the charterer; compliance with policies is crucial.

  • Redelivery of the yacht must be prompt to avoid additional charges.

  • Captains may have authority to make contracts on behalf of the owner.

  • Owners should consider national and regional laws before placing a yacht on the charter market.