TOPIC: BAREBOAT AND DEMISE CHARTER

PARTIES

SUBJECT: MARITIME LAW

FACULTY: DR. ARUNA KAMILA

BY: ANUSHA RAO THOTA

ROLL NUMBER: 2017099
SEMESTER – VI

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 TABLE OF CONTENTS

Abstract.....................................................................................................................................3
INTRODUCTION....................................................................................................................4
EXPRESS AND IMPLIED WARRANTIES IN THE DEMISE CHARTER....................6
Owner's Obligations...............................................................................................................6
Charterer's Obligations...........................................................................................................8
Effect of Warranties upon Third Parties................................................................................8
STANDARD TERMS AND PROVISIONS OF THE DEMISE..........................................9
Term.....................................................................................................................................10
Hire.......................................................................................................................................10
Description and Characteristics of the Vessel......................................................................10
Employment of Vessel.........................................................................................................11
Seaworthiness.......................................................................................................................11
Delivery, Redelivery, and Related Surveys.........................................................................12
Cancellation Clause..............................................................................................................13
Insurance and Indemnification.............................................................................................14
Salvage.................................................................................................................................15
Subcharter............................................................................................................................15
Default..................................................................................................................................15
CONCLUSION.......................................................................................................................16

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 ABSTRACT

During the last half century, legal commentators have either ignored or summarily dismissed
the demise charter as an anachronism. The demise has been characterized as "obsolete" or at
best a "nuisance."' These comments are no longer valid. Recent maritime developments such
as the expansion of the offshore oil industry and new concepts of vessel financing have
established the demise charter party as a viable medium for the employment of vessels. The
effective use of the demise charter requires a conceptual and practical understanding of its
formation and structure. The basic concept has been succinctly and quaintly stated: The
distinction between the demise and other forms of charter contracts is as clear as the
difference between the agreement a man makes when he hires a boat in which to row himself
and the contract he makes with a boatman to take him for a row. While the demise has been
resurrected only recently, the legal principles which govern its creation and existence are
firmly established. The term bareboat charter signifies an arrangement for the hiring of a boat
or ship without crew and the people renting the boat from the owner are responsible for
appointing the crew and making other arrangements. In such a case, the chartered takes over
the vessel for a stated period of time with a minimum of restrictions for a stipulated sum. 

A bareboat charter is different from voyage or time charter like a crewed or luxury yacht
charter, where the charterer charters the ship for a particular voyage or for a set period of
time. In such cases charters the charterer can direct where the ship will go but the owner of
the ship retains possession of the ship through its employment of the master and crew.
However, in a bare-boat charter, the owner gives possession of the ship to the charterer and
the charterer hires its own master and crew. The giving up of possession of the ship by the
owner is the defining characteristic of a bare-boat charter. The bare-boat charterer is
sometimes called a "disponent owner". 

Bareboat is also different from "skippered" charters. When persons pool their finances to
bareboat so that the qualified master among them may skipper for the group, even though
s/he is not ostensibly a paid skipper s/he now takes on the legal responsibilities of one. This
can have far-reaching consequences in the event of negative occurrences at sea.

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 INTRODUCTION

A bareboat charter is different from voyage or time charter like a crewed or luxury yacht
charter, where the charterer charters the ship for a particular voyage or for a set period of
time. In such cases charters the charterer can direct where the ship will go but the owner of
the ship retains possession of the ship through its employment of the master and crew.
However, in a bare-boat charter, the owner gives possession of the ship to the charterer and
the charterer hires its own master and crew. The giving up of possession of the ship by the
owner is the defining characteristic of a bare-boat charter. The bare-boat charterer is
sometimes called a "disponent owner". 

Bareboat is also different from "skippered" charters. When persons pool their finances to
bareboat so that the qualified master among them may skipper for the group, even though
s/he is not ostensibly a paid skipper s/he now takes on the legal responsibilities of one. This
can have far-reaching consequences in the event of negative occurrences at sea
The lease of a vessel under which the charterer acquires from the owner the sole right to
possess and operate the vessel for a specified time is a demise charter party. While the
purchaser does not share the legal title, in most ways the demise charterer is essentially the
owner of the vessel and is generally known as the owner pro hac vice. The captain is then
under the direction of the charterer, the crew are the persons of the charterer, and the vessel is
engaged in the company of the charterer. The duties of the charterer to the owner of the
vessel basically consist of paying hire for the charter term and exercising ordinary vigilance
in the vessel's treatment. The duties of the charterer to third parties are primarily those of the
owner.1 However, the shield of restriction of responsibility is often provided to the demise
charterer, where the contractual conditions ("in case he shall man, victual, and navigate such
vessel at his own expense, or by his own procurement") have been met.
On the other hand, the charterer does not contract for the vessel per se under the more
familiar time charter, but rather for the service of the vessel rendered by the owner through
the master and crew of the owner.' The relationship between the owner and the demise
charterer can be described as that of bailor and bailee, while the relationship between the
owner and the time charterer can be described as that of private carrier and shipper charterer

1
Reed v. The Yaka, 373 U.S. 410, 412, 1963 A.M.C. 1373, 1375-76 (1963);
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can acquire the whole reach of the vessel, he will not have a property interest in the vessel
analogous2 to that which is acquired by a demise charterer. 3 Possession, though not
necessarily the exclusive control, is retained by the owner. The time charterer does not
assume the general liabilities of a demise charterer, nor does he benefit from the limitation of
liability incident to a demise.

Where the parties decide to terminate the vessel, the owner shall, by agreement and in fact,
surrender to the charterer the ownership and control of the vessel. A bareboat charter party,
also referred to as a bareboat charter, must demonstrate that the charterer has been granted
exclusive ownership, order, and navigation of the vessel. In order to constitute a death, the
charter party must not use scientific terms' in any specific manner. Instead, the arrangement
and the actions of the parties must clearly reflect the delivery of an interest in the charterer's
demise equal to, but just short of, a direct transfer of ownership.... Something short of such a
complete transfer is a charter party or not a charter party at all.

Although the requirements which distinguish an end-of-life charter party from a vessel
service contract are easily understood in the abstract, the difficulty lies not in the declaration
of the rule or in the recognition of its implications, but in its application to infinitely different
contractual circumstances between shipowners and charterers. If the owner delivers the vessel
to the charterer in compliance with the terms of a written arrangement, which expressly or
effectively guarantees that the charterer shall have sole ownership, power and command of
the vessel for the whole period of use, the owner shall operate, manage and manoeuvre the
vessel at his own expense or at his own expense. The charter arrangement may require the
delivery of the vessel, complete with master and crew, to the charterer. This alone, if
followed by the necessary relinquishment of ownership and power, does not adversely affect
the development of a death. However, if the employer provides the workers and pays their
compensation, the charterer would be denied the privileges of restriction of responsibility,
even if the arrangement otherwise shows a specific intent to pass management and power to
the charterer.

2
Bergan v. International Freighting Corp., 254 F.2d 231, 232, 1958 A.M.C. 1303, 1304 (2d Cir. 1958).

3
McGahern v. Koppers Coal Co., 108 F.2d 652, 653, 1940 A.M.C. 457, 458 (3d Cir. 1940).

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Employment of the master by the owner is not lethal to the development of a death, but raises
concerns about the real presumption by the charterer of the vessel's ownership and
management and the master and crew's course. In consideration of this possible conflict of
power, where the owner provides the master and crew, the courts strongly doubt the existence
of a termination charter. A group attempting to assess a vessel's demise carries a strong duty
of arguing that the contract does not show any other agreement compatible with the owner's
preservation of power. Since there is no clear demarcation of the point at which possession
and control have been transferred to the charterer, the language of the charter party
concerning the manning of the vessel must receive careful attention. The allocation of
responsibility for maintenance and repair of the vessel during the charter term is also

considered in determining whether a demise was created.

The owner, however, can place fair restrictions on the use of the vessel by the charterer. The
owner can, for example, maintain the power to withdraw the captain, prescribe the vessel's
trade limits and regulate the types of services that the vessel may participate in. If there is
some doubt that the Charter represents a demise, the entire Charter Document as well as the
conduct of the parties would be carefully scrutinised with focus put on the transition of
ownership and power.

EXPRESS AND IMPLIED WARRANTIES IN THE

DEMISE CHARTER

The privileges and duties of the owner and charterer are greatly altered by the transition of
ownership and power to the death charterer. The successful use of the death charter involves
an understanding of the forms of warranties that may be specified or implied in the
arrangement.

OWNER'S OBLIGATIONS

In the absence of con-tractual qualification, the shipowner's primary duty is to supply a

seaworthy vessel at the outset of the charter period. A assurance of seaworthiness, unless
eligible or waived, would be inferred in the charter party. Since provisions relieving a
shipowner of his responsibility to supply a seaworthy vessel are disadvantaged by the courts,
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the promise must be refused in simple and unambiguous words. Seaworthiness is an
enigmatic and relative notion which is characterised as fair fitness for the vessel's intended
use. The vessel must be tight, strong, staunch, suited, and properly fitted for its anticipated
operation, consistent with this elastic concept. The definition of seaworthiness may
incorporate or supplement the basic assurances of the physical features and capabilities of the
vessel that may be included in the charter team.

Although the owner's duty to furnish a seaworthy vessel may stretch beyond the beginning of
the charter period under a time charter, the owner's duty to furnish a seaworthy vessel may
only extend beyond the beginning of the charter period under a time charter. Thereafter, the
death charterer bears the owner's responsibility for the effects of unseaworthiness resulting
after delivery. While the seaworthiness warranty of the owner involves latent defects in the
absence of a contrary stipulation, if the charterer examined the vessel and detected, or should
have discovered, the fault, the owner may be relieved of responsibility to the charterer for
patent defects occurring upon delivery. Because the death charterer is in the possession of the
vessel and has the opportunity to investigate the vessel. One commentator argues that this
could greatly restrict the promise of seaworthiness of the owner. The recommendation of the
commentator represents a considerable qualification of the implicit warranty of the owner as
faults reported to the death charterer can be essentially waived without an explicit restriction
being included in the charter party.

Invariably, the charter group includes comments identifying the vessel, its features, and
capabilities. In view of the contemplated usage of the vessel, the definition of the vessel's
class, flag, tonnage, carrying ability, speed, location, fuel consumption and other relevant
characteristics may be of vital importance to the charterer. If the vessel is dismissed for
general purposes, the charterer's deployment may be subject to unexpected contingencies.
When the parties determine that the vessel may be used for a particular reason, some
descriptive features may be important. Speed and fuel consumption declarations of the vessel,
carrying ability, current location or time of sailing or other features may be viewed as
warranties rather than simply informative recitals if they appear to encourage the charterer to
enter into the charter agreement.

The basic distinction between the absence and other charter agreements would temper the
general concepts underlying the creation of implicit and explicit warranties in maritime
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charters. The transition of power to the death charterer relieves the owner who has performed
his duties in other charter contracts upon completion of several duties placed on vessel
owners.

CHARTERER'S OBLIGATIONS

The primary duties of the demise charterer are to reimburse charter hire and redistribute the
vessel in as good repair, except for ordinary wear and tear, as that in which he obtained it.
Although the duty to pay hire for the negotiated duration is almost always an implicit clause
of the chartering party, the termination charterer has an implicit requirement to pay hire until
the vessel is redelivered at the end of the stated period. The charterer's responsibility to pay
hire shall not be impaired by extrinsic conditions such as the unprofitability of the vessel, in
the absence of clear contractual exceptions or annoyance of the charter group. The death
charterer is the effective owner of the vessel and is not entitled to make any deductions from
the charter hire for damages incurred by delays, maintenance and related incidents in the
absence of contrary clauses in the charter party.

The implicit duty of the charterer to redeliver the demised vessel in as good a state as
obtained, except for ordinary wear and tear, is effectively de- rived from bailment principles
at the end of the charter term. While a demise charterer is not a vessel insurer who is liable
for harm to or failure to the vessel incurred without blame, he can expressly or indirectly
presume an utter duty to return the vessel to good condition.

EFFECT OF WARRANTIES UPON THIRD PARTIES

If they wish, the owner and demise charterer are free to contract and have unlimited power to
change, extend, or repeal their responsibilities inter se. However, their respective
responsibilities to third parties may be focused on legitimate duties which are not susceptible
to the Charter Party's qualification or allocation.

By its own existence, the termination charter has a significant effect on the division of
liability between the owner and the charterer in regards to the duty to operate a seaworthy
vessel. The demise offers the charterer much of the personal obligations incident to vessel
ownership, including responsibility for unseaworthiness occurring within the duration of the
contract, unlike the limited recourse of charterers to liability in most charter contracts.

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If an absolute duty to preserve a seaworthy vessel is enforced by statute, the parties to the
termination charter do not disclaim or exclude the rights given to future claims of personal
injuries by the doctrine of seaworthiness. The owner of a vessel that has been dismissed may
be liable for accidents sustained by unseaworthy conditions prior to the vessel's arrival.
According to the conventional opinion, the purchaser is immune from responsibility for
damage incurred by an unseaworthy situation resulting since the vessel's ownership and
control has been ceded to the charterer's demise. However, the demised vessel itself may be
liable in rem for lawsuits dependent on unseaworthiness for personal injuries, regardless of
the time that the unseaworthy state was established.

It is troublesome to what degree subcharterers and cargo owners should avail themselves of
warranties incident to a charter party of demise. As a simple proposition, neither a sub
charterer nor a cargo owner has any contractual privacy with the general owner in such a way
that they can rely on the owner's promise of seaworthiness or descriptive assurances.
However, the charterer may be entitled to liability for damages incurred by the inability of the
owner to comply with his commitments, and direct litigation by a third party against the
owner has been allowed to prevent circumvention of acts when the charterer is only
secondarily accountable. Cargo interests can, irrespective of the lack of privacy or the lack of
personal liability of the owner, retain an action against the vessel in rem for harm to cargo
transported under either private or common carriage.

STANDARD TERMS AND PROVISIONS OF THE

DEMISE

Although a maritime contract subject to admiralty authority and the established rules of
maritime law represent a demise charter party, the contracting parties have substantial
freedom in formulating and structuring their relationship. They would, however, be bound by
the provisions of their signed agreement. Although the charter party's particular conditions
will depend on the conditions and wishes of the parties, the intended purpose and condition of
the vessel, and other applicable factors, there will be a range of content considerations of
general applicability.

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TERM

As a death can last for a day or for more than a decade, the parties are free to assign an
acceptable charter term. While the length of the charter concept may be determined by a fixed
amount of time, a moderating expression is typically used by the charter party, such as more
or less or about to convey the intention of the parties to allow the charterer a reasonable
degree of flexibility in the scheduling of redistribution. If, prior to the expiry of the specified
period, the charterer redelivers the vessel or holds ownership past the expected redelivery
date, the terms of the charter party shall initially set down the respective rights and
obligations of the parties. The charter group should delineate the impact of early and late
redelivery in considering such contingencies.

HIRE

The charter hire rate can be measured in different ways, such as the annual fee specified, the
rate per tonne per month, the percentage of vessel profits, the fixed base with an extra
percentage, or the sliding rate over the charter period. Notwithstanding the manner in which
the hire rate is determined, the hire provisions shall specify the method of payment and the
implications of the inability of the charterer to tender payments in a timely manner. Where
charter hire is in arrears, under the terms of the charter party, the owner may be entitled to
reassume ownership and possession of the vessel which has been discharged.

Unless expected by the charter party, the result of contingencies such as vessel failure, loss or
injury and the effects of events characterised as force majeure can produce misunderstandings
about the payment of charter hire. In the absence of a contrary stipulation, the hire shall be
payable between the expiry of the contract and the redelivery of the vessel which has been
dismissed. When the vessel is laid down for maintenance or otherwise damaged, the duty to
pay charter hire can remain. The charter group often specifies that "hire shall continue until
the time of such loss, if known, or if the time of loss is uncertain, then up to and including the
time last heard from, in order to avoid disagreement regarding the obligation to pay hire
should the vessel be lost.”

DESCRIPTION AND CHARACTERISTICS OF THE VESSEL

Although definitions of vessel characteristics may represent assurances, additional legal and
functional considerations may emerge from the characteristics themselves. Where a vessel is
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owned by a U.S. resident, such constitutional conditions must be met in order to alter the flag
of the vessel or to dismiss the vessel as an alien. In addition, if her flag is altered or if she is
fired without the consent of the underwriter, the vessel's insurance can be cancelled.

The charter group frequently acknowledges the class and designation society of the vessel.
The arrangement should permit the charterer to retain the classification of the vessel, since an
unapproved alteration of class or classification company can significantly alter the risks of
vessel operations and terminate the insurance of the vessel. In order to prevent future
conflicts, the vessel's cargo carrying ability should be identified with certainty when the
charterer plans to use the damaged vessel to carry cargo. This ability is also ex-pressed as a
result of the tonnage of deadweight that the vessel can bear when filled to its freeboard in
summer. As deadweight tonnage does not generally mean that the vessel is capable of
handling any unique quantity of bulk freight, the vessel's bale or grain cubic capacity should
also be specified.

EMPLOYMENT OF VESSEL

While the vessel owner is divested of the ownership and management of the vessel that has
been discharged, certain statutory limitations on the employment of the vessel by the
charterer are usually inserted, where applicable, into the charter party. The contract may set
trade restrictions that define the geographical areas in which the vessel is not permitted to
work. At a minimum, such territorial limitations should be compatible with the geographical
boundaries set out in the Trading Warranty provision of the insurance contract in place. The
charter group will also preclude the charterer from steering the vessel to a dangerous port or
to a berth where it may not always lay safely afloat and may enable the charterer to comply
with all applicable government regulations. Contractual limits of this sort simply aim to
safeguard the reversionary rights of the vessel's holders and are not compatible with the
notion of a demise.

SEAWORTHINESS

A seaworthiness assurance which, in the absence of an explicit restriction, is inferred by any

charter party, is typically the subject of a clause defining the condition of delivery of the
vessel. The warranty of the owner is also expressly limited to a promise to conduct due
diligence. Language minimising the warranty in the charter party must explicitly prove a
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desire to deprive the owner of his responsibility. Provisions that say, for example, that the
charterer considers the vessel to be in 'first-class condition' or that the charterer recognises the
vessel as it is not adequately unambiguous to constitute waivers of the implicit sea-
worthiness guarantee.

Although the owner of the vessel has no continuous obligation for seaworthiness equivalent
to that owed by the owner of a time charter, it might be of decisive interest for the parties to
decide when an unseaworthy situation occurred before or after the vessel was shipped.
Although the owner will not be liable for the patently unseaworthy conditions which the
charterer had the ability to detect at the time of delivery, the charter party also provides that
the charterer's delivery to and approval of the vessel signifies complete fulfilment of the
owner's responsibility to provide the vessel with a seaworthy service. These clauses generally
state that full performance requires satisfaction, articulated or implied, of all arrangements,
representations or guarantees with respect to the quality of the vessel. Provisions of this type
should absolve the owner of liability for even latent faults found after the vessel's approval by
the charterer, unless otherwise provided by the charter group.

DELIVERY, REDELIVERY, AND RELATED SURVEYS

The extent of conflicts between the owner and the charterer concerning the status of a
dismissed vessel allows the charter party to include statutory clauses that thoroughly clarify
the duties of the parties regarding delivery and redelivery. The delivery provision shall
indicate the location where the vessel is to be tendered to the charterer and shall include
recitals respecting the vessel's state and health. However, these recitals and the associated
assurances or disclaimers of seaworthiness do not sufficiently prove the true physical state of
the vessel that has been dismissed. Therefore, the parties generally intend to perform, at the
beginning and end of the charter contract, a contractual survey of the vessel and its facilities.
While on-hire and off-hire condition surveys have been alluded to as an annoyance, upon
redelivery, they may help to settle disputes about the condition of the vessel. Such future
conflicts can be reduced if a mutually agreeable surveyor, where possible, performs detailed
on-hire and off-hire surveys on behalf of both the owner and the charterer. The parties could
accept that the results of the survey concerning the state of the vessel that was dismissed and
the existence and degree of any harm that occurred during the duration of the charter are
binding.
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The Demise Charter Party may also specify the inventories of items such as furniture,
warehouses, electricity, spare parts and the like shall be carried out together by the members
of the owner and the charterer at the time the term of the charter begins and expires. These
regulations also prescribe a method for paying for inventory deficiencies after the redelivery
of vessels.

The charter party also includes a special maintenance provision which allows the charterer to
carry out such repairs as may be required to maintain the successful working condition of the
vessel and maintain the classification of the vessel. If the owner has the ability to carry out
annual assessments of the vessel, he does not have any reliable way of assessing the adequacy
of the repairs carried out over the duration of the charter. However, a clear maintenance
provision should encourage the compensation of the owner for harm incurred by improper
maintenance, since the charterer can be unable to relate that damage to ordinary wear and
tear.

The Redelivery Clause typically specifies the location where the vessel is to be tendered back
to the owner and specifies that the vessel is to be returned in the same order and condition as
it was received, save for natural or fair wear and tear. While the hull policy frequently
compensates the owner and relieves the charterer of liabilities for harm or injury incurred by
an insured threat, there are often disagreements over damage found after redelivery. Proof of
good quality distribution and redelivery in a compromised condition usually produces a prima
facie argument or inference of blame against the charterer and puts the burden of exculpatory
facts on the charterer to continue.

For injury that constitutes ordinary wear and tear, the charterer is specifically protected from
liability. Wear and tear has been characterised by ordinary and fair use of the subject-matter
as degradation or depreciation of value. In deciding whether individual pieces of damage can
be characterised as ordinary wear and tear, the envisaged use of the vessel is important. The
charterer should not be responsible for losses incurred by structural weakness, damaged
condition, or non-seaworthiness pre-existing.

CANCELLATION CLAUSE

In general, the charter party has a termination provision that allows the charterer the chance
of ending the charter if the vessel is not delivered by a specified date. It is important to
13
exercise this option in a timely manner. The Termination Provision does not place a
requirement on the owner to deliver the vessel before the date of cancellation, as the owner is
merely obliged to tender the vessel for fair dispatch. As the owner may be unable to monitor
the exact timing of vessel motions, a precise delivery date is typically not specified.

INSURANCE AND INDEMNIFICATION

Those relating to the liability for providing insurance during the charter period are among the
most significant provisions of a termination charter faction. Vessel insurance covering bodily
injury or damage is of special interest to the consumer. Either the owner or the charterer may
assume the responsibility for the procurement of hull and machinery insurance, although the
owner normally procures the hull policy. As the transition of ownership and control incident
to the demise significantly affects the risk, it would usually be appropriate for the express
consent of the underwriters to begin coverage under the hull policy maintained prior to the
demise. While hull and machinery insurance essentially suits the owner of the vessel, the
charterer has an insurable interest in the dismissed vessel that helps him to procure or be
named as a guaranteed hull policy.

In order to complement the hull scheme, the Demise Charter Group typically allows the
charterer to receive maritime safety and compensation cover. While the insurance and
compensation scheme primarily protects the employee of the charterer's death and third-party
responsibilities resulting from vessel activities, the coverage should also shield the owner
from lawsuits from third parties.

The type of vessel and its intended use can require additional insurance, such as tower
liability, workers' compensation, war risk, excess safety and compensation, and accident
liability coverage, to be procured. In order to show the satisfaction of the duty to insure and
to inform the non-procuring party of the particular terms and conditions of the relevant
insurance arrangements, the Charter Party should again require that both the owner and the
charterer obtain copies of the regulatory policies. The charter group also states that, under all
required insurance contracts, both the owner and the charterer would be listed as appointed
insureds and that the policies include an explicit waiver of subrogation in order to preclude
the underwriters from moving against the contracting parties.
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The charter party also obliges the charterer to indemnify the owner if the charterer's conduct,
omission, or negligence nullifies either of the defined insurance policies. The charter group
may provide special recovery clauses allocating blame for the effects of infrastructure
deficiencies due to latent faults, forcing the charterer to meet liens, or allocating liability for
future lawsuits arising from the state or service of the vessel that has been dismantled.

SALVAGE

A clause that prorates any salvage awards won during the charter period can be included by
the charter party. Relevant salvage awards shall, in the absence of such a clause, be divided
between the owner and the charterer according to the respective risks to which their rights in
the vessel were exposed during the salvage process.

SUBCHARTER

Until the charter group has a contrary stipulation, a charterer may subcharter the vessel. As
the owner is usually concerned with the identity of the party controlling and running the
vessel, the arrangement should state that, without the express written permission of the
owner, the charterer shall not sub-charter or pass his interest in the vessel.

DEFAULT

The particular actions that represent a default by the charterer, such as the inability to pay
charter hire or the bankruptcy of the charterer, are normally enumerated by a death charter
party. The Default Clause frequently authorises the shipowner, without prior claim or due
procedure and without regard to any additional remedies that the owner may have, to
repossess the vessel that has vanished.

The owner is usually not prohibited from exercising the default provisions by a tender for
charter hire in arrears. Payment of unpaid hire after the exercise of the default recourse by the
owner shall not entitle the charterer, in the absence of a contrary stipulation in the
arrangement, to restore the performance of the charter.

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 CONCLUSION

A distinctive and viable form of charter partnership is the Demise Charter Group.
Conceptually, it is the transition to the charterer of the vessel's ownership, administration, and
power. The privileges and responsibilities of the owner and charterer are greatly impacted by
this transfer, which is the root of the demise. When designed to fulfil the wishes of the parties
in compliance with existing principles of maritime law, the Demise Charter Party is most
successful.

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