CANCELLATION BY THE CHARTERER
CONSEQUENCES OF NON-PAYMENT
WEATHER OR FORCE MAJEURE
a) i) (EN)
If the CHARTERER gives notice of cancellation of this Agreement at any time before the commencement of the Charter Period, part or all of the Charter Fee – initial payment – may be retained by the OWNER, as follows:
- After this Agreement is signed but before the final instalment is due, the OWNER shall be entitled to retain the first instalment.
- After any subsequent instalments are due, the OWNER shall be entitled to retain the first instalment and any subsequent instalments due.
If any instalments are due but have not been paid, the OWNER shall have a claim against the CHARTERER for the outstanding amount.
ii) DEFAULT OF PAYMENT OR FAILURE TO PAY (EN)
Should the CHARTERER fail to pay, after written notice has been given by the OWNER, any amount due under this Agreement, the OWNER reserves the right to treat this Agreement as repudiated by the CHARTERER and to retain the full amount of all payments made, as well as to recover all sums unpaid and due up to the date of repudiation.
iii) (EN)
Notwithstanding the OWNER’s right to receive or retain all payments referred to above, the OWNER shall use his best endeavours to mitigate the CHARTERER’s loss and, if able to re-let the Vessel for all or part of the Charter Period, shall give credit to the CHARTERER for the net amount of charter hire arising from such re-letting after deduction of all commissions and consequential expenses.
The intention is that the OWNER shall receive the same in net proceeds as would have been received under this Agreement had it not been cancelled or repudiated. The OWNER shall reimburse or forgive payments received or due from the CHARTERER only to the extent that the net proceeds from any re-letting exceed the amounts which would have been received under this Agreement.
The OWNER shall use best efforts to re-let but shall not be obliged to accept charters which could reasonably be considered detrimental to the Vessel, its reputation, its Crew or its schedule.
iv) (EN)
If, prior to the date of cancellation, the Vessel has already taken on provisions for the Charter or has utilised any funds delivered under this Agreement, then the CHARTERER shall be liable for these expenses unless they can be refunded by the supplier or carried forward to the next Charter. The Captain and the OWNER shall use best efforts to mitigate such expenses.
v) CANCELLATIONS BASED ON THE PERIOD BEFORE THE CHARTER (EN)
- For bookings made more than 30 days in advance, if cancellation is made by the CHARTERER more than 30 days before the Charter date, 100% of the amounts paid shall be refunded.
- If cancellation is made between the 29th and the 15th day before the Charter date, 50% of the amounts paid shall be refunded.
- If cancellation is made less than 14 days before the Charter date, no amounts paid shall be refunded or due.
b) (EN)
If, after signature of this Agreement, the OWNER is declared bankrupt or, in the case of a company, a liquidator, receiver or administrator is appointed over all or part of the OWNER’s assets, the CHARTERER shall be entitled to cancel the Agreement and all sums paid shall be refunded without deduction.
In the event of cancellation due to adverse weather conditions, as assessed and communicated by the Portuguese Maritime Authority (Port Captaincies), particularly in the case of navigation bans or port closures, all sums paid shall be fully refunded without any deduction.
BREAKDOWN OR DISABLEMENT
BREAKDOWN OR DISABLEMENT (EN)
If, after delivery, the Vessel becomes disabled due to machinery breakdown, grounding, collision or other cause preventing reasonable use by the CHARTERER for a period between twelve (12) and forty-eight (48) consecutive hours, or one tenth (1/10) of the Charter Period, whichever is shorter, the OWNER shall make a pro rata refund of the Charter Fee or, if mutually agreed, allow a pro rata extension of the Charter Period.
If the CHARTERER wishes to invoke this clause, immediate notice shall be given to the Captain (or via the Broker). The CHARTERER shall not be liable for extra costs relating to immobilisation but shall remain liable for normal expenses during such period.
In the event of actual or constructive total loss of the Vessel, or if the Vessel is disabled for more than forty-eight (48) hours or one tenth (1/10) of the Charter Period, whichever is shorter, the CHARTERER may terminate this Agreement by written notice to the OWNER. Within two (2) working days after termination, the Charter Fee shall be refunded pro rata without interest.
Upon such termination, the CHARTERER may redeliver the Vessel where it lies and shall be entitled to recover from the OWNER the reasonable cost of returning the CHARTERER and his Guests to the Place of Redelivery together with reasonable accommodation expenses.
Alternatively, after disablement exceeding forty-eight (48) hours or one tenth (1/10) of the Charter Period, whichever is shorter, and depending on the seriousness of the disablement, by mutual agreement the CHARTERER may elect to remain on board for the remainder of the Charter Period, with no further claims against the OWNER.
