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What is Charter Agreement?

Charter Agreement Defines terms for chartering transportation, such as aircraft or boats, specifying rental fees, routes, passenger capacity, and vessel details.



Sample template:



CHARTER AGREEMENT


This Charter Agreement (the "Agreement") is entered into as of [Agreement Date] by and between Horizon Travel Services LLC, a [State] limited liability company ("Charterer"), and Seascape Dream Yacht Owner, a [State] [entity type] ("Owner"), collectively referred to as the "Parties".

1. CHARTER OF THE VESSEL

1.1. Vessel Description


Owner, in consideration of the Charterer's covenants herein, does hereby charter to Charterer the luxury yacht, "Seascape Dream" (the "Vessel"), under the terms and conditions set forth below.



2. RENTAL FEES AND PAYMENT TERMS

2.1. Rental Fees


Charterer agrees to pay Owner a total rental fee of [Rental Fee]. This fee is inclusive of all applicable taxes, the Vessel's base fee, crew wages, docking fees, and standard operating expenses.


2.2. Deposit


Charterer shall pay a deposit of [Deposit Amount] within [number] days of the Effective Date, which shall be applied towards the total Rental Fee. The remaining balance of the Rental Fee shall be paid in full no later than [number] days prior to the commencement of the charter period (the "Charter Period").


2.3. Payment Terms


All payments shall be made in US Dollars to Owner's designated bank account. Payments made after their due date shall be subject to late fees at an annual interest rate of [Percent]%, compounding daily. Failure of Charterer to timely remit any payment shall entitle Owner to cancel this Agreement without prejudice to any other rights or remedies available to Owner.



3. CHARTER PERIOD, ROUTES, AND MAXIMUM PASSENGERS

3.1. Charter Period


The Charter Period shall commence on [Start Date] and shall end on [End Date], subject to extension by mutual written agreement of the Parties.


3.2. Routes and Itinerary


During the Charter Period, the Vessel shall follow an itinerary mutually agreed upon by the Parties prior to the commencement of the Charter Period, which may include stops at various ports and destinations (the "Approved Itinerary"). The Vessel shall not deviate significantly from the Approved Itinerary unless both Parties have provided their prior written consent to such deviation.


3.3. Maximum Passengers


The maximum number of passengers allowed onboard the Vessel during the Charter Period shall not exceed [Number of Passengers] (the "Passenger Capacity"). Charterer shall be responsible for ensuring that no more than the Passenger Capacity is on board the Vessel at any time during the Charter Period.



4. CREW, OPERATIONS, AND MAINTENANCE

4.1. Crew


Owner shall provide a qualified crew for the Vessel during the Charter Period, which shall include a captain, a mate, a chef, and such other crew members as Owner deems necessary for the safe and efficient operation of the Vessel.


4.2. Operations and Compliance


Owner and Charterer shall at all times operate and maintain the Vessel in compliance with all applicable United States laws, regulations, and rules. Owner shall be responsible for obtaining/maintaining any required permits or licenses necessary for the Vessel's operation during the Charter Period. Charterer shall immediately notify Owner in writing of any incident or issue that may affect the Vessel's safe operation, seaworthiness, or compliance with applicable law.


4.3. Maintenance, Repairs, and Expenses


Owner shall maintain the Vessel in a safe and seaworthy condition during the Charter Period. Owner shall bear the cost of routine maintenance, repairs, and operating expenses for the Vessel during the Charter Period. Charterer shall be responsible for any damage to the Vessel or loss of equipment, fixtures, or inventory onboard the Vessel as a result of Charterer's negligence or willful misconduct.



5. INSURANCE

5.1. Liability Insurance


Owner shall maintain comprehensive general liability insurance and maritime liability insurance, including protection and indemnity, during the Charter Period, with a minimum insured amount of [Amount] for each occurrence and an annual aggregate limit of [Amount].


5.2. Charterer Insurance Requirements


Charterer shall, at its expense, procure and maintain [Charterer's Insurance Requirements], with a reputable insurance provider, during the Charter Period. Charterer shall provide Owner with a certificate of insurance evidencing such coverages prior to the commencement of the Charter Period. Charterer shall ensure that Owner is named as an additional insured, and that any amounts payable to Owner under this Agreement are insured against Charterer's default.



6. INDEMNIFICATION

Charterer agrees to indemnify, defend, and hold harmless Owner, its agents, representatives, employees, and affiliates from and against any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees and disbursements) arising out of or resulting from any injury, death, damage to property, or any other cause attributable to or resulting from (a) Charterer's use or operation of the Vessel during the Charter Period, or (b) the breach or violation of any provision of this Agreement by Charterer, except to the extent of Owner's gross negligence or willful misconduct.



7. TERMINATION

Either Party may terminate this Agreement upon written notice to the other Party in the event of (a) a material breach or default by the other Party, which breach is not cured within [number] days after written notice thereof, (b) the insolvency, bankruptcy, or cessation of business operations by the other Party, or (c) the occurrence of a Force Majeure event lasting longer than [number] consecutive days.



8. FORCE MAJEURE

No Party shall be liable for any failure or delay in its performance under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, labor strikes or disputes, embargoes, government orders or restrictions, or other force majeure events (each a "Force Majeure" event).



9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the United States and the State of [State], without reference to conflicts of law principles.



10. DISPUTE RESOLUTION

Any dispute arising out of or in connection with this Agreement shall be resolved exclusively by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.



11. ENTIRE AGREEMENT; AMENDMENT

This Agreement constitutes the entire agreement between the Parties with respect to the charter of the Vessel and supersedes all prior or contemporaneous understandings, negotiations, or discussions. This Agreement may only be amended, supplemented, or otherwise modified in a writing signed by authorized representatives of both Parties.



IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

[ Horizon Travel Services LLC ]

By: ___________________________
Name: _________________________
Title: ________________________

[ Seascape Dream Yacht Owner ]

By: ___________________________
Name: _________________________
Title: ________________________

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Sections of a Charter Agreement


In this Charter Agreement, you will see the following sections:

  1. Charter of the Vessel
  2. Rental Fees and Payment Terms
  3. Charter Period, Routes, and Maximum Passengers
  4. Crew, Operations, and Maintenance
  5. Insurance
  6. Indemnification
  7. Termination
  8. Force Majeure
  9. Governing Law
  10. Dispute Resolution
  11. Entire Agreement; Amendment


Going indepth - Analysis of each section:

  1. Charter of the Vessel : This section describes the yacht being rented, called "Seascape Dream." The owner agrees to rent the yacht to the charterer under the terms and conditions in the agreement.

  2. Rental Fees and Payment Terms : This section outlines the total rental fee, deposit amount, and payment terms. The charterer must pay the deposit within a specified number of days and the remaining balance by a certain date. Payments must be made in US Dollars, and late payments will incur interest. The owner can cancel the agreement if the charterer fails to make timely payments.

  3. Charter Period, Routes, and Maximum Passengers : This section specifies the start and end dates of the charter period, the approved itinerary, and the maximum number of passengers allowed on board. The charterer is responsible for ensuring that the passenger capacity is not exceeded.

  4. Crew, Operations, and Maintenance : The owner will provide a qualified crew for the yacht, and both parties must comply with all applicable laws and regulations. The owner is responsible for routine maintenance, repairs, and operating expenses, while the charterer is responsible for any damage or loss caused by their negligence or misconduct.

  5. Insurance : The owner must maintain liability insurance, and the charterer must also obtain specific insurance coverage. The charterer must provide proof of insurance and ensure the owner is named as an additional insured.

  6. Indemnification : The charterer agrees to indemnify and hold the owner harmless from any claims, damages, or expenses resulting from the charterer's use of the yacht or breach of the agreement, except in cases of the owner's gross negligence or willful misconduct.

  7. Termination : Either party can terminate the agreement if the other party breaches the agreement, becomes insolvent, or if a force majeure event lasts longer than a specified number of days.

  8. Force Majeure : Neither party is liable for failure or delay in performance due to causes beyond their control, such as natural disasters, war, terrorism, labor disputes, or government restrictions.

  9. Governing Law : The agreement is governed by the laws of the United States and a specific state, without reference to conflicts of law principles.

  10. Dispute Resolution : Any disputes arising from the agreement will be resolved through arbitration administered by the American Arbitration Association, and the resulting award may be entered in any court with jurisdiction.

  11. Entire Agreement; Amendment : The agreement represents the entire understanding between the parties and supersedes any prior discussions or negotiations. Amendments to the agreement must be in writing and signed by both parties.

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