Concept of Charterparty as an International Contract for Engagement of Ship for Transportation of Cargo and Legal Perspective on Critical Areas of Charterparty for Avoidance of Disputes
Concept of Charterparty as an International Contract for Engagement of Ship for Transportation of Cargo and Legal Perspective on Critical Areas of Charterparty for Avoidance of Disputes

Author(s): Harsh Pathak
Subject(s): International Law, Law on Economics, Maritime Law, Commercial Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: charterparty; shipping; cargo; seaworthiness; voyage; perils;
Summary/Abstract: In international business charterparty is a main legal contract of engaging a vessel for transportation of cargo. It is a highly important document since it defines the performance obligations as rights, duties, liabilities, risks, earnings, costs and profits between the contracted parties, i.e. the shipowner and the charterer. The proper incorporation, interpretation and understanding of charterparty terms is crucial for chartering business. Therefore, this paper based on the observations of the various judicial authorities, emphasis on the main types of charter and deals with usual clauses qua distribution of the liabilities and expenses between the ship-owner and the charterer. More specifically, type of the charter, important clauses in the charterparty for suitability of the vessel, its seaworthiness, the avoidance of unjustifiable deviations, the ship’s arrival at the port, the loading and discharging operations, the delivery of cargo, liabilities, exceptions to liabilities etc. The instant paper is based on shipping practices followed in accordance with international and English common laws in pre-to-post fixture in execution of chartering process. As chartering is one of the most critical commercial operation under international business contracts with significant operational, financial and legal consequences.The deliberations in this paper is from a contractual and legal perspective to understand this special purpose contract for better execution and avoidance of disputes.

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