Exam (elaborations)
BROKERAGE & CHARTERING LECTURE 1 QUESTIONS AND ANSWERS
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BROKERAGE & CHARTERING LECTURE 1 QUESTIONS AND ANSWERS
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Name: Score:29 Multiple choice questions
Term 1 of 29
ON EXAM: Where is the phrase charter party derived from?
Same as bare boat charter, except not paying for crew
ONLY when the charter in question is a bare boat or time charter agreement
The Medieval Latin phrase "Carta Partite" which means "divided document"
Same as bare boat charter
Term 2 of 29
What instance is the Charterer NOT responsible for paying "hire" on a bare boat charter?
If a ship is out of class or engine failure. Not responsible to pay here until issue is fixed.
Primary terms negotiated and agreed upon during the trade (the offer/counter offer
process)
DNRVAOCLONL: discountless and nonrefundable vessel and/or cargo lost or not lost.
If ship sinks with your cargo, you still owe the freight. Hopefully you have cargo
insurance where the U/W pays. Want some kind of marine insurance that covers cargo
damage or general average.
A freight or hire idea expressed by the owner. Gives the Charterer an idea of the owner's
position. Doesn't contain a lot of detail. IT IS ABSOLUTELY NOT LEGALLY BINDING!!!
,Term 3 of 29
Definition of a voyage charter
ONLY when the charter in question is a bare boat or time charter agreement
Same as bare boat charter, except not paying for crew
An agreement to move a specific cargo from a designated location or locations to
another location or locations. Most frequently used type of charter.
Voyage charter, less risky because you don't have to pay (like in a time charter) when
ship is stopped at sea or delayed travel
Term 4 of 29
What is "hire"?
The "bare" boat is chartered for a designated period of time. Sub of time charter type.
Indication
Offer
Counter Offer
Acceptance
Paying for space on a ship and not operating it. Charterer contracts only for service of
vessel and not vessel itself. (A) The vessels cargo carrying capacity for a specified
period of time, or (B) the described voyage on a time charter basis (called a time charter
trip)
Money - the "consideration" for the charter party agreement - money charterer pays to
shipowner for use of vessel.
,Term 5 of 29
EXAM SHORT ANSWER: What exactly does "Chartering" mean?
Established in shipping long before you could charter a plane or charter a ship in the
Caribbean
Basic concept: It's when someone who needs a ship or space on a ship contracts with a
shipowner for that space
A contract for he hiring of all or part of a vessel, it's legal and is governed by all usual
laws applying to contracts. Usually governed by Admiralty Law and jurisdiction due to its
maritime nature.
Voyage charter, less risky because you don't have to pay (like in a time charter) when
ship is stopped at sea or delayed travel
Term 6 of 29
Definition of bare boat charter
Indication
Offer
Counter Offer
Acceptance
Freight
The "bare" boat is chartered for a designated period of time. Sub of time charter type.
Paying for space on a ship and not operating it. Charterer contracts only for service of
vessel and not vessel itself. (A) The vessels cargo carrying capacity for a specified
period of time, or (B) the described voyage on a time charter basis (called a time charter
trip)
, Term 7 of 29
What are subjects?
Must be based on the terms of the other party's offer WITHOUT MODIFICATION.
Anything other than a Clean Acceptance is a counter offer.
Most of these are the details contained in all charter party agreements but are not main
negotiated terms. Deal is subject to additional things. Terms in this category are subject
to time bar.
Primary terms negotiated and agreed upon during the trade (the offer/counter offer
process)
It contains clearly defined terms in high detail. If accepted, a binding contract is the
result. Must be clear and sincere. For a given time and a given vessel, there should only
be one vessel out.
Term 8 of 29
What is the contract called that governs the relationship between a charterer and shipowner?
Charter party
A contract for he hiring of all or part of a vessel, it's legal and is governed by all usual
laws applying to contracts. Usually governed by Admiralty Law and jurisdiction due to its
maritime nature.
The Medieval Latin phrase "Carta Partite" which means "divided document"
Voyage charter, less risky because you don't have to pay (like in a time charter) when
ship is stopped at sea or delayed travel
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