1. LEGAL INDENTITY
The full name of the company is Sail Dalmatia Limited. Registered office is at Riverbank House, 1 Putney Bridge Approach, London, SW6 3BQ. We act as a yacht charter broker on behalf of local boat owners in Croatia and Montenegro. Our terms and conditions are in line with the local boat owners policies and procedures.
2. CHARTER CONTRACT
This contract regulates all rights and regulations between the OWNER of the vessel, who is authorized for selling the accommodation capacities on M/Y, the BROKER, who acts on behalf of the OWNER and makes all arrangements for the CHARTERER. The parties agree on the following details
The OWNER and CHARTERER accept that Clauses 1-22, inclusive, form part of this Agreement which consists of ten pages. Signed and legible facsimile or scanned copies of this Agreement shall be binding.
OWNER_______________________Date ____________CHARTERER ________________________Date ________
For and on behalf of: For and on behalf of:
FULL NAME OF SIGNATORY ____________________ FULL NAME OF SIGNATORY ________________________
BROKER ___________________________ Date __________
FULL NAME OF SIGNATORY _________________________
CLAUSE 1 CHARTER
The OWNER agrees to accommodate CHARTERER on the vessel and not to enter into any other Agreement for the Charter of the Vessels for the same period. The owner’s or his company is legally responsible to honour this agreement according to Croatian Law Zakon o obveznim odnosima (Narodne Novine 78/15). The EU has passed a new Package Travel Directive (the "New Directive") EU Travel Directive (EU) 2015/2302 that expressly requires the insolvency protection imposed on all EU members including companies registered in Croatia.
The CHARTERER shall pay the Charter Price to the Account specified in the invoice accompanying the charter contract.
CLAUSE 2 DELIVERY
The OWNER shall at the beginning of the Charter deliver the Vessel to the Port of Delivery and the CHARTERER shall take delivery in full commission and working order, seaworthy, clean, in good condition throughout and ready for service, with full equipment, including up-to-date safety and live-saving equipment (including life – jackets for children if any, are part of the CHARTERER’s Party), as required by the Vessel’s registration authority and enabling the CHARTERER to use the Vessels as set out in Clause 12. The OWNER does not warrant her comfort in bad weather conditions.
CLAUSE 3 RE-DELIVERY
The CHARTERER shall re-deliver the Vessels to the OWNER at the Port of Re-Delivery free of any debts incurred for the CHARTERER’s account during the Charter Period and in as good condition as when delivery was taken, except for fair wear and tear arising from ordinary use. The CHARTERER may, if he wishes, re-deliver the Vessels to the Port of Re-Delivery and disembark prior to the end of the Charter Period but such early re-delivery shall not entitle the CHARTERER to any refund of the Charter Price.
CLAUSE 4 CRUISING AREA AND TIME
Cruising of the Vessels is to within agreed Cruising Area. Cruising time is restricted under way to an average of four (4) hours per day, unless the Captain, in his sole discretion, agrees to exceed this time or unless otherwise is agreed among the Undersigned Parties.
CLAUSE 5 MAXIMUM NUMBER OF PERSONS
RESPONSIBILITY FOR CHILDREN, HEALTH OF THE CHARTERER’S PARTY, PETS ON BOARD
a) The CHARTERER shall not at any time during the Charter permit more than the Maximum Number of Guests Sleeping or Cruising on Board here in stated. As an exception, a reasonable number of visitors could be on Board whilst the Vessels are securely moored in port and at the sole discretion of the Captain.
b) If children are taken on board, the CHARTERER shall be fully responsible for their safety, conduct and entertainment.
c) The nature of a Vessels charter may render it unsuitable for anybody with physical disability or undergoing medical treatment. By signing of this Agreement, the CHARTERER warrants the medical fitness of all members of the CHARTERER’s party for the voyage. The CHARTERER and his party are obligated to inform themselves if they need to have visas for the countries to be visited.
d) Pets are not allowed on board.
CLAUSE 6 CREW
The OWNER provides Crew for the Vessel, according to the laws of Croatia, properly uniformed, fed and insured. The OWNER shall ensure that the Captain and Crew comply with the laws and regulations of any country into whose waters the Vessel shall enter during the course of this Agreement.
CLAUSE 7 CAPTAIN’S AUTHORITY
a) The OWNER shall ensure that the Captain shows the CHARTERER the same attention as if the CHARTERER were the OWNER. The Captain shall comply with all reasonable orders given to him by the CHARTERE Regarding the management, operation and movement of the Vessels, wind, weather and other circumstances. The Captain shall not, however, be bound to comply with any order which, in his reasonable opinion, might result in the Vessels moving to any port or place that is not safe and proper for her to be in, or might result in the CHARTERER failing to re-deliver the Vessels (upon the expiration of the Charter Period) or would cause a breach of Clause 12.
b) Further, without prejudice to any other remedy of the OWNER, if, in the reasonable opinion of the Captain, the CHARTERER or any of his Guests fail to observe any of the provisions in Clause 12 and if such failure continues after the Captain has given due and specific warning to the CHARTERER in writing in respect to the same, the Captain shall inform the OWNER and may terminate the Charter forthwith or return the Vessels to the Port of Re-Delivery and upon such return the Charter Period shall be terminated. The CHARTERER and his guests shall disembark, the CHARTERER having settled all outstanding expenses with the Captain and shall not be entitled to be refunded any part of the Charter Price.
c) With particular regard to the use of water sports equipment, as defined in Clause 14, the Captain shall have the authority to prohibit the use by the CHARTERER or any or all of his Guests from use of any particular water sports equipment if, in his reasonable opinion, they are not competent to operate such equipment, are behaving in an irresponsible manner, or are failing to show due concern to other persons when operating this equipment.
d) The Captain should ensure a fully signed copy of the relevant Charter Agreement is on-board for each charter booked. Time should be taken to read and understand the terms and conditions of this Agreement, drawing particular attention to any applicable Addenda, and make sure that all accounting and other procedures comply with those terms and conditions.
CLAUSE 8 DELAY IN DELIVERY
a) If the OWNER fails to deliver the Vessels at the Port of Delivery at the commencement of the Charter Period, the OWNER will offer the CHARTERER refund pro rate for every day or part of day lost or if it is possible and mutually agreed the OWNER shall ensure a pro rata extension of the Charter Period.
b) If by reason of force majeure the OWNER fails to deliver the Vessels within forty-eight (48) hours or a period equivalent to one-seventh (1/7th) of the Charter Period, whichever period is shorter, from the due time of delivery, the CHARTERER shall be entitled to treat this Agreement as terminated. The CHARTERER’s exclusive remedy will be to receive repayment without interest of the full amount of payments made by him to the OWNER. Alternatively, if the parties mutually agree and subject to the bookings of the Vessels, the Charter Period shall be extended for a period equal to that which shall have elapsed between the date of delivery and the date of the actual delivery of the Vessels.
c) If the OWNER fails to deliver the Vessels at the Port of Delivery at the commencement of the Charter Period in accordance to article b of this clause, other than by reason of force majeure, the CHARTERER shall be entitled to treat this Agreement as repudiated by the OWNER. The CHARTERER will be entitled to repayment without interest of the full amount of all payments made by him to the OWNER.
d) Alternatively, to the repayment of the full amount the OWNER may offer to the CHARTERER for the same Charter Period and Charter Fees another Vessel upgraded to the Vessel initially agreed to in regard to size, comfort and services.
OWNER has to get CHARTERER’s consent on replacement of the Vessel.
CLAUSE 9 DELAY IN RE-DELIVERY
a) If re-delivery of the Vessels is delayed by reason of force major, re-delivery shall be made as soon as possible thereafter and in the meantime the conditions of this Agreement shall remain in force but without penalty or additional charge against the Charterer.
b) If the CHARTERER fails to re-deliver the Vessels to the OWNER at the Port of Re-Delivery due to intentional delay or change of itinerary against the Captain’s advice, then the CHARTERER shall pay forthwith to the OWNER demurrage at the daily rate plus forty percent (40%) of the daily rate, and if delay in re-delivery exceeds twenty-four (24) hours, the CHARTERER shall be liable to indemnify the OWNER for any loss or damage which the OWNER shall suffer by reason of deprivation of use of the Vessels or cancellation of, or delay in delivery under, any subsequent charter of the Vessels.
CLAUSE 10 CANCELLATION BY THE CHARTERER
Should notice of cancellation of this Agreement be given by the CHARTERER on or at any time before commencement of the Charter Period, or should the CHARTERER fail after having been given notice to pay any amount payable under this Agreement and therefore receives notice of cancellation because of overdue payment, total amount of charter fee received by the OWNER will be taken as cancellation fee.
The CHARTERER is entitled to find (by himself or with assistance of his BROKER) 3rd person who will assign CHARTERER's Charter Agreement, in which case CHARTERER will be refunded for the amount of charter fee which 3rd person will pay to the Owner for assigned charter.
IF the OWNER or his OWNER’S BROKER find 3rd person who will assign CHARTERER’s cancelled Charter Agreement, CHARTERER will be refunded for the amount of charter fee which 3rd person will pay to the Owner for assigned charter after deducting BROKER’S commission.
If the CHARTERER has paid full amount of charter fee and there was no assignment of the Charter Agreement to 3rd person it will be presumed that CHARTERER has not cancelled the Agreement and the Vessel will be at CHARTERER's disposal during the charter period quoted in Charter Agreement.
Should the CHARTERER by his own will for any reason decide to disembark earlier, there will be no refund for shortened charter period than the one originally booked in Charter Agreement.
CLAUSE 11 BREAKDOWN OR DISABLEMENT
a) If, after delivery, the Vessels at any time are disabled by breakdown of machinery, grounding, collision or other cause so as to prevent reasonable use of the Vessels by the CHARTERER for a period of not less than twelve (12) consecutive hours or one-seventh (1/7th) of the Charter Period, whichever is the larger, and not more than twenty-four (24) consecutive hours or one-seventh (1/7th) of the Charter Period, whichever is the shorter, (and the disablement has not been brought about by any act or default of the CHARTERER), the OWNER shall make a pro rate return of the Charter Fee from the date and time when the Vessels was disabled or became unfit for use. Alternatively, if the parties mutually agree and subject to the circumstances, the Charter Period shall be extended by a time equivalent to the disablement. If the CHARTERER considers the circumstances justify the invoking of this Clause, he shall give immediate notice in writing to the Captain that he wishes to do so.
b) If, however, the Vessels is lost, or is so extensively disabled as aforesaid that the Vessels cannot be repaired within a period of twenty-four (24) hours or one-seventh (1/7th) of the Charter Period, whichever is the shorter, the CHARTERER may terminate this Agreement by notice in writing to the OWNER or, communications is possible, to the Captain on the OWNER’s behalf, and as soon as practicable after such termination the Charter Fee shall be repaid by the OWNER pro rate without interest for that part of the Charter Period remaining after the date and time that the loss or disablement occurred. In these circumstances, the CHARTERER may affect Re-Delivery by giving up possession of the Vessels where she lies. The CHARTERER shall be entitled to recover from the OWNER the reasonable cost of returning himself and his passengers to the Port of Re-Delivery by scheduled services, together with any accommodation expenses necessary for this purpose.
CLAUSE 12 USE OF THE VESSEL
a) The CHARTERER shall use the Vessel exclusively as a pleasure vessel for the use of himself and his Guests. The CHARTERER shall ensure that no pets or other animals are brought on board the Vessels without the consent in writing of the OWNER. The CHARTERER shall ensure that the behaviour of himself and his Guests shall not cause a nuisance to any person or bring the Vessels into disrepute.
The CHARTERER shall comply, and shall ensure that his Guests comply, with the laws and regulations of any country into whose waters the Vessel shall enter during the course of this Agreement.
The Captain shall promptly draw the CHARTERER’s attention to any infringement of these terms by himself or his Guests, and if such behaviour continues after this warning, the Captain shall inform the OWNER, and the OWNER may, by notice in writing given to the CHARTERER, terminate this Agreement in accordance with Clause 7 of this Agreement.
b) If the CHARTERER or any of his Guests shall commit any offence contrary to the laws and regulations of any country which
results in any member of the crew of the Vessels being detained, fined or imprisoned, or the Vessel being detained, arrested, seized the CHARTERER shall indemnify the OWNER against all loss, damage and expense incurred by the OWNER as a result, and the OWNER may, by notice to the CHARTERER, terminate this Agreement forthwith.
It is also specifically understood that the possession or use of any illegal drugs or any weapons (including particularly firearms) by CHARTERER or any of his guests shall be sufficient reason for the OWNER to terminate the Charter forthwith without refund or recourse against the OWNER.
CLAUSE 13 NON-ASSIGNMENT
The CHARTERER shall not assign this Agreement, sub-let the Vessel or part with control of the Vessel without the consent in writing of the OWNER, which consent may be on such terms as the OWNER thinks fit.
CLAUSE 14 INSURANCE OF VESSELS, GUESTS AND CREW
The Owner agrees to insure the vessel against fire, marine and collision risks and protection and indemnity coverage for the term of a Charter and thereby the charterer shall be relieved of any and all liability for such loss or damage. The Owner also agrees to provide personal accident/injury insurance for all passengers and crew on board the vessel/s for the term of a Charter. The Owner holds an additional financial protection that protects client’s money in case of insolvency. The Owner holds the said policies of insurance but should the Owner fail to carry such insurance he shall then assume the same responsibility as if the vessel and passengers were so insured.
CLAUSE 15 CHARTERER’S LIABILITY
The CHARTERER shall only be liable for such costs or losses as may be incurred by repairing damage caused by the CHARTERER or his guests (intentionally or otherwise) to the Vessel or any third party up to the level of the Excess (Deductible) on the OWNER’s insurance policy for each separate accident or occurrence.
The CHARTERER may be liable for a sum greater than the Excess (Deductible) on any one accident or occurrence if the CHARTERER or any of his guests acted in such a manner (intentionally or otherwise) to avoid, or limit the coverage of the OWNER’s insurance policy.
CLAUSE 16 DEFINITIONS
a) FORCE MAJEURE
In this Agreement “force majeure” means any cause directly attributable to acts, events, non-happenings, omissions, accidents or Acts of God beyond the reasonable control of the OWNER or the CHARTERER (including, but not limited to; strikes, lock-outs or other labour disputes, civil commotion, riots, blockade, invasion, war, fire, explosion, sabotage, storm, collision, grounding, fog, new governmental act or regulation, major mechanical or electrical breakdown beyond the crew’s control and not caused by OWNER’s negligence).
b) OWNER, CHARTERER
Throughout the Agreement, the terms “OWNER” and “CHARTERER” and corresponding pronouns shall be construed to apply whether the OWNER or CHARTERER is male, female, or corporate, singular or plural.
Throughout the Agreement, the term “CHARTERER” corresponds to CHARTERER'S PARTY – end CHARTERER.
CLAUSE 17 ARBITRATION
Any dispute in connection with the interpretation and fulfilment of this Agreement shall be resolved in front of competent country of charter, place of embarkation (Split, Croatia). This Agreement shall be interpreted and fulfilled in accordance with Croatian Law Zakon o obveznim odnosima (Narodne Novine 78/15).
CLAUSE 18 COMPLAINTS
CHARTERER shall immediately upon detecting irregularities considered as the basis for a complaint bring complaint to the Captain or his Agency. If the CHARTERER first brought his complaints Captain, and is not satisfied with the way the Captain approached to the problem, he shall at latest after 6 hours of presenting complaint to Captain bring the complaint to his agency as soon as possible. CHARTERER is obliged to cooperate with the Captain and the Agency in good faith to rectify the problem. If the CHARTERER did not put forward his complaint to his Agency during the term, OWNER or his Agency will not be obligated to represent his legal interests in front of the actual owner of the vessel.
CLAUSE 19 PROMOTIONAL MATERIAL
When chartering to clients of a Broker who is not from the vessel’s Central Agency firm, all central agency or the owner’s promotional literature must be placed out of sight. Should the Charterer express an interest in re-chartering the vessel (or any other vessel) he should be given whatever help the Captain can offer, but should always be referred back to the Broker who booked the vessel, rather than to the Central Agent or the Owner. The Captain or any member of the crew is not allowed to pass any contact details of the guests to the Central Agent or Owner. As common courtesy and to aid communication between all parties, please ensure that the charterer’s broker is copied into all correspondence between the crew and the charterer during and after the charter.
CLAUSE 20 COMMUNICATIONS
The Captain and crew are bound at all times to keep all information related to any Charter, the Owner, the Charterer and all guests as confidential as per this Agreement (‘the Agreement’), even after their employment onboard has ended, and no information or photos are to be disclosed to any third party without prior permission in writing. It is becoming increasingly important to monitor the crew’s usage of internet chat rooms and social networking sites at all times.
CLAUSE 21 CREW GRATITUTIES
Crew Gratuities are left solely at the Charterer’s discretion. Brokers generally suggest to Charterers that a gratuity calculated between 5% and 10% of the contracted gross Charter Fee only is appropriate if the crew has given excellent service. However, it is important to understand that a Charterer is under no obligation to leave a gratuity and at no time should a gratuity be solicited, either verbally or in written form when settling the final account.
CLAUSE 22 BROKER’S COMMISISON
By their signatures to this Agreement the OWNER and the CHARTERER both confirm and agree to the following: - a) The Brokers' commission shall be deemed to be earned by the Broker(s) upon the signing of this Agreement and be payable by the OWNER on the full Charter Fee plus the Delivery/Redelivery Fee, if applicable, but excluding running expenses, according to Clause 22 below, whether or not he defaults for any reason including force majeure.
a) In the event of Cancellation by the CHARTERER, the commission shall be deducted as an expense from the deposit.
b) If the CHARTERER should extend this Charter, the Brokers shall be entitled to and shall be paid by the OWNER, commission on the gross Charter Fee for the extension, on the same basis as provided herein.
c) If the CHARTERER should re-charter the Vessel from the OWNER, his Agent or the Stakeholder, within two (2) years from the date of completion of this Charter, whether or not on the same terms, then the Brokers shall be entitled to, and shall be paid by the OWNER, commission on the gross Charter Fee paid for that further charter upon the same basis as provided herein. However, if the CHARTERER should choose to re-charter the Vessel within this two-year period via another bona fide Broker, to whom the commission is being paid, the OWNER shall pay a commission of one-third (l/3rcl) of the full rate to the original Broker and twothirds (2/3rds) to the new Broker. This only applies following the free choice of the CHARTERER and will be relevant if the change of broker is suggested or solicited by the OWNER, his agent, Captain or representative.
d)The Brokers in this Agreement shall have no responsibility for any loss, damage or injury to the person or property of the OWNER or CHARTERER or any of their Guests, servants or agents, and further the Brokers shall be under no liability for any errors of judgment or description or otherwise of whatsoever nature and howsoever arising and shall be under no further obligation, duty or responsibility to the OWNER or the CHARTERER save as set out herein. The OWNER and the CHARTERER shall jointly and severally indemnify and hold harmless the Brokers for any loss or damage sustained by them as a result of any liability by the Brokers to any Third Party (person, firm, company or authority) arising from promoting or introducing this Charter, assisting in the performance of this Agreement or performing the duty of Stakeholder.) For the purposes of this Clause, the terms OWNER and CHARTERER shall be understood to mean the named company or individual, or any company owned or controlled by them including companies owned indirectly or via Trustees, any Director of such a company, Beneficial Owner, Nominee, Agent or Charterer's Guest.
Sail Dalmatia Limited
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