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Simple English definitions for legal terms
charterparty
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A quick definition of charterparty:
A charterparty is a contract between the owner of a ship and a merchant or company who wants to use the ship to transport goods. The contract can be for a specific voyage or for a certain period of time. It is also called a charter or charter agreement. In the past, the contract was written on two separate pieces of paper, with each party keeping one part. Today, most charters are detailed written documents that are tailored to the specific needs of the shipper and carrier.
A more thorough explanation:
A charterparty is a contract between the owner of a ship and a merchant or charterer. The contract allows the charterer to lease the ship or a part of it for a specific period of time or a predetermined voyage to transport goods to one or more places. It is also known as a charter agreement or charter.
For example, a company may need to transport a large amount of goods from one country to another. They can enter into a charterparty with a shipowner to lease a ship for a specific period of time to transport the goods.
The term "charterparty" comes from the Latin term "charta partita," which means a deed of writing divided. In earlier times, the charterparty was prepared in two parts, with the shipowner retaining one part and the charterer the other.
Today, most charterparties are detailed written documents that are tailored to the specific needs of the shipper and carrier in a particular type of trade or commerce.