Lecture 2

Question 1

What are the different stages of a Charter Party (C/P)?

Answer 1

Entering into a C/P, Operating the Vessel, Money Matters, End of the C/P.

Question 2

Who are the parties involved in a C/P?

Answer 2

Owner, Charterer, Broker.

Question 3

What is a fixture recap?

Answer 3

Summary of agreed terms between parties before finalizing the C/P.

Question 4

What is meant by ‘SUB …’?

Answer 4

Subject to conditions that must be satisfied before the C/P becomes effective.

Question 5

Explain the difference between ‘Condition,’ ‘Warranty,’ and ‘Innominate Terms.’

Answer 5

Condition: Breach allows termination and claim for damages.

Warranty: Breach allows claim for damages only.

Innominate Terms: Termination allowed if breach is serious; otherwise, damages only.

Question 6

What is the significance of Hyundai Merchant Marine v Americas Bulk Transport (The Pacific Champ) [2013]?

Answer 6

Case discussing whether a binding contract was made, highlighting importance of clear terms in C/Ps.

Question 7

What is meant by ‘WOG’ (Without Guarantee)?

Answer 7

Representation only, not a contractual obligation; however, must be made in good faith.