A more thorough explanation:

Definition: Clause paramount is a provision in a charterparty that specifies which jurisdiction's law will govern the agreement. This provision typically incorporates the Carriage of Goods by Sea Act into the charter.

Example: A shipping company based in the United States enters into a charterparty agreement with a company based in Japan. The charterparty includes a clause paramount that specifies that the laws of the United States will govern the agreement. This means that any disputes or legal issues that arise from the charterparty will be resolved according to U.S. law.

Explanation: The example illustrates how a clause paramount can be used to determine which jurisdiction's law will govern a charterparty agreement. In this case, the provision specifies that the laws of the United States will apply, even though the other party is based in Japan. This helps to ensure that both parties understand their legal obligations and can resolve any disputes that may arise in a fair and consistent manner.