Charter Party - Definition - Law Dictionary Home Dictionary Definition charter-party

Definition :

Charter-party [fr. Charta partita, Lat., a divided charter; charte partie, Fr.]. When notaries were less common there was only one instrument made for both parties; this they cut in two, and give each his portion; an agreement in writing by which a ship owners agrees to let an entire ship, or part thereof, to a merchant, for the carriage of goods on a specified voyage, or during a specified period, for a sum of money which the merchant agrees to pay as freight for their carriage. By such an agreement the ship is said to be chartered to the merchant, who is called the charter. There are certain terms usually to be found in all charter-parties, e.g., a statement of the burthen of the ship, an undertaking by the ship-owner that the ship, being seaworthy and furnished with necessaries, shall be ready by a certain day to receive the cargo, shall sail when loaded, and deliver her cargo at her port of destination (the act of God or the King's enemies excepted), the charterer undertaking to load and unload the ship, within a certain number of days, called the lay or running days, and if he detain her longer, to pay demurrage, i.e., a certain sum of money for each extra day, and also to pay freight agreed. In the absence of a charter-party or bill of lading, the ship-owner becomes a common carrier and remains liable as such, see Hill v. Scott, 1895 (2) QB 713. See Leggett or Scrutton on Charter-parties; Abbott on Shipping; Caver, Carrige by Sea. As to stamp (6d.), see ss. 49-51 of the Stamp Act, 1891 (54 & 55 Vict. c. 39).