Charter-party in United Kingdom

Meaning of Charter-party

The following is an old definition of Charter-party [1]: A contract by which the owner lets his vessel to another for freight. A contract by which an entire ship, or some principal part thereof, is let to a merchant for the conveyance of goods on a determined voyage to one or more places. All contracts under seal were anciently called ” charters,” and divided into two parts, one for each party. whence (the word(s) which follow it are derivatives from the same root word) charta-partita; a writing divided; like an indenture (see this term in this resource) at common law. Charterer. He who hires a vessel under a ” charter-party.” Charter-money. The sum agreed to be paid for the use of the vessel. Charge of navigating the vessel may be retained by the owner or assumed by the hirer. The contract is generally effected through a broker acting for the ship-owner. A ship thus chartered is opposed to a “general ship.” The instrument is not usually under seal. It names the vessel, master, and contract parties; and specifies the tonnage, the times and places for loading and discharge, the charter-money, and the allowance for delay. It is a commercial instrument, subject to the rules applicable to other commercial contracts. It is to be construed liberally, in agreement with the intention of the parties, the usages of trade in general and of the particular trade. An action in rem cannot be maintained for the breach of a charter-party when the voyage was not undertaken, and no part of the cargo delivered on board. See Defect; Dispatch; Freight; Lading, Bill of; Sail. 2. The primary meaning – a deed or sealed instrument – is obsolete. Used alone, the word now refers to certain instruments which emanate from government, in the nature of letters-patent. The king’s grants, whether of lands, honors, liberties, franchises, or aught besides, are contained in charters or letters-patent, g. v.

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Notes and References

1. Concept of Charter-party provided by the Anderson Dictionary of Law (1889) (Dictionary of Law consisting of Judicial Definitions and Explanations of Words, Phrases and Maxims and an Exposition of the Principles of Law: Comprising a Dictionary and Compendium of American and English Jurisprudence; William C. Anderson; T. H. Flood and Company, Law Publishers, Chicago, United States)