The charter contract arose in the Middle Ages. It is considered the forerunner of a cargo insurance agreement. Subsequently, 2 types of charter contract appeared. The first concerned the rental of a vehicle, and the second became an integral element of cargo transportation. Let us consider in more detail the features of a charter contract. A sample document will also be presented in the article.
General information
A charter agreement (charter ) is a type of agreement for the carriage of goods. He is onerous and consensual.
There are chartering agreements for the carriage of passengers with baggage or solely for the transport of goods. This agreement has one important feature. The charterer (sender) may oblige the carrier to provide a specific vehicle for transportation or a certain part of its capacity.
Transaction specifics
When concluding a contract for chartering a vehicle, the carrier cannot, at its discretion, replace it. To do this, you must obtain the consent of the sender.
The parties to the charter agreement can approve the route, the period of transportation, the place of acceptance of the cargo. This transaction differs from linear transport, where the schedule is set exclusively by the carrier.
The current legislation does not define the list of vehicles to which chartering may apply. However, historically, it is used primarily for water and air transport. Although interested parties can conclude a bus charter agreement , for example.
Carrier liability
As mentioned above, you can rent the entire vehicle or a certain part of it for cargo or passengers with baggage. Consequently, under a charter contract for a vessel or other vehicle, the carrier cannot, at its discretion, carry other passengers or cargo. This will be a violation of the agreement. The charterer has the right to demand the removal of goods or passengers not declared for transportation. If the carrier does not comply with it, the sender may apply to the court with a request to terminate the charter contract . In this case, the provisions of the 450th article of the Civil Code will apply.
If the owner of the vessel refuses to release him from the undeclared cargo, the charterer has the right to demand a reduction in the cost of transportation and compensation for losses in accordance with Art. 137 Code of Merchant Shipping.
Subject composition
The parties are the charterer and the carrier. At the conclusion of the agreement, the obligations and rights of the former are similar to those that the consignor receives when drawing up the contract of carriage. In practice, a charter agreement may be concluded, the beneficiary of which will be a third party - the consignee.
Features of passenger transportation
At the conclusion of the contract, the charterer assumes responsibility for the citizens whom he is transporting. Typically, such agreements are drawn up by tour operators.
Passengers are not parties to the contract. Moreover, their interests are protected by the Civil Code and other regulatory acts governing transport services.
In the event of harm to life, property, health of passengers, the carrier will be liable. In the case of improper provision of transport services, claims for damages may be presented to him. In this case, you can refer to the Law on the Protection of Consumer Rights.
Design specifics
A charter contract is concluded in writing. When using sea vessels, a bill of lading is attached to it. This document confirms the ownership of the goods carried.
Registration of the contract when using sea transport is carried out according to one of the standard forms. Currently, there are about 200 of them.
Document Content
In domestic legislation, no special requirements for the text of the agreement are established. Due to the fact that chartering is considered a kind of contract of carriage, relevant rules with certain features apply to it. In particular, the agreement must specify the time and place of delivery of the vehicle for loading.
In accordance with the 120th article of KTM, the following information must be present in the contract:
- On the parties (name or full name).
- Type, type of cargo.
- The name of the place of loading.
- Freight size.
- Destination or route.
Parties may include other conditions in the document.
Charterer legal capacity
At the conclusion of the contract, the carrier must make sure that the second party has the right to complete the transaction. To do this, you should request constituent documents or a certificate of state registration. Their copies should be attached to the contract.
Contact details
In order to avoid various problems, the parties should indicate their telephone numbers and addresses (postal, electronic) in the contract.
Experts recommend including in the agreement the obligation of the charterer to notify the carrier of changes in contact details. In particular, we are talking about the address of the subject. In practice, there is often a need to notify the charterer of certain events that occurred during transportation (the achievement of a point, damage to the cargo, etc.).
Charterer solvency
This moment is very important when concluding a contract. Currently, vehicles are often rented out for the transport of goods or the extraction of natural resources (fishing, for example), subject to payment from the profits made. However, no one can guarantee the necessary income. In this regard, it is advisable to conclude an agreement with a condition of prepayment.
To reduce the risk, you can use the rules of the Civil Code on securing obligations. The contract may provide for collateral, forfeit, provision of property, bank guarantee, surety.
Powers of transaction participants
Often, on behalf of the charterer, his representative acts. He must have a document confirming his authority. It is a power of attorney. It reflects the specific rights of the subject, the period during which he can exercise them. The power of attorney must be certified by a notary.
For some individuals, the law provides for the ability to exercise authority without a special document. These include, in particular, the head of the enterprise.
Legality of the transaction
Article 168 of the Civil Code provides for the opportunity to challenge a transaction that does not comply with the law. There are frequent cases when the carrier does not have permits for the vehicle or the activities that it carries out. Before making a deal, you need to make sure of their availability and relevance. The contract may be invalidated in case of violation of environmental, currency legislation.
The illegality of the transaction entails negative consequences for the shipowner, especially in cases where he has already fulfilled part of the obligations.
Features of the calculation
There are no strict rules in the legislation regarding the payment of freight. When concluding an agreement in the usual standard form, the document reflects the tariff established by the carrier for the period of use of the vehicle or the amount of cargo. Terms and conditions of payment are determined according to the rules specified in the form.
Participants in the transaction, however, may agree on a different type of payment. In this case, all conditions and rules should be fully reflected. In addition to the rate, the agreement reflects the calculation schedule, method of payment, details for the transfer of funds.
As a rule, freight is paid in full before the shipment of cargo or passengers. However, the law allows partial payment. For example, the charterer transfers part of the funds at the time of loading, and the remaining funds after arrival at the destination.
Cargo deposit
The shipowner can ensure the fulfillment of obligations at the expense of the transported cargo. However, this is allowed if the corresponding condition is present in the contract.
Meanwhile, the use of cargo as collateral is accompanied by a number of difficulties. In particular, foreclosure is possible only in court. In this case, the fact of violation by the charterer must be proved. Recovery is carried out as part of enforcement proceedings through the sale of property. From the proceeds, the applicant's claims are extinguished. Such an order is not always applicable for objective reasons. For example, if a perishable cargo is transported, then collection will be very problematic.
It should be borne in mind that special requirements are established for pledge agreements for certain types of material assets. For example, notarization or registration with the competent authorities is required. If these conditions are not met, the pledge agreement may be invalidated.
Retention
This method of provision is considered the most common. Article 359 of the Civil Code establishes a rule according to which, if a party to a contract fails to comply with the established conditions, the lender has the right to retain property to be transferred to the debtor or to the entity indicated by him until the obligation is duly fulfilled.
If such a condition is not spelled out in the agreement, it shall be effective by law.