Cancellation by the Charterer

If the Charterer cancels the yacht charter agreement before the start of the charter period, the Owner may retain part or all of the charter fee depending on the timing of the cancellation.

Cancellation before the final payment date

If the cancellation occurs after the agreement has been signed but before the final instalment becomes due, the Owner shall be entitled to retain the first instalment (initial payment).

Cancellation after the final payment becomes due

If cancellation occurs after subsequent instalments have become due, the Owner shall be entitled to retain:

• the first instalment

• any subsequent instalments already due under the agreement.

If any instalments are due but have not yet been paid, the Owner reserves the right to claim the outstanding amounts from the Charterer.

Consequences of Non-Payment

If the Charterer fails to pay any amount due under this Agreement, and written notice has been issued by the Owner, the Owner may treat the Agreement as repudiated by the Charterer.

In such circumstances:

• all payments already made may be retained by the Owner

• any unpaid instalments may be legally claimed by the Owner

• the charter agreement may be terminated.

Re-Chartering of the Vessel

Even when cancellation occurs, the Owner shall make reasonable efforts to re-charter the vessel for the same charter period.

If the yacht is successfully re-chartered, the Charterer may receive a credit equal to the net charter revenue obtained from the new booking, after deduction of:

• commissions

• operational expenses

• administrative costs.

The objective is that the Owner receives the same net revenue that would have been earned had the original charter proceeded.

The Owner is not obliged to accept substitute charters that could reasonably harm the vessel, its reputation, the crew, or operational schedules.

Provisioning and Pre-Charter Expenses

If provisions, supplies, or services have already been purchased for the Charter before cancellation occurs, the Charterer remains responsible for these costs unless:

• the supplier provides a refund, or

• the expenses can be transferred to another charter.

The Owner and Captain will make reasonable efforts to minimise such expenses.

Cancellation Period Policy

The following refund rules apply depending on the timing of the cancellation:

More than 30 days before charter

100% of the amount paid will be refunded.

Between 29 and 15 days before charter

50% of the amount paid will be refunded.

Less than 14 days before charter

No refund will be due.

Owner Insolvency

If, after the signing of the Agreement, the Owner becomes bankrupt or enters insolvency proceedings (including liquidation, receivership or administration), the Charterer may cancel the Agreement and all amounts paid will be refunded in full.

Weather Conditions or Force Majeure

If the charter cannot take place due to official maritime restrictions, including:

• navigation bans

• port closures

• safety orders issued by Portuguese Maritime Authorities (Port Captaincies)

the Charterer shall receive a full refund of all payments without deductions.

This applies only where the restrictions make the charter legally impossible or unsafe.

Breakdown or Disablement of the Vessel

If, after delivery of the yacht, the vessel becomes unusable due to mechanical breakdown, grounding, collision, or other causes, the following conditions apply.

Temporary disablement

If the yacht cannot be used for a period between:

• 12 hours and 48 consecutive hours, or

• one tenth (1/10) of the charter period, whichever is shorter,

the Owner shall provide:

• a pro-rata refund, or

• a pro-rata extension of the charter period, if mutually agreed.

The Charterer must notify the Captain immediately if this situation occurs.

Total loss or extended disablement

If the vessel is disabled for more than:

• 48 hours, or

• one tenth (1/10) of the charter period

the Charterer may terminate the Agreement by written notice.

Within two working days, the Owner will refund the unused portion of the Charter Fee on a pro-rata basis.

Return of the Charterer and Guests

If the Agreement is terminated due to disablement, the Charterer may return the vessel at its current location.

The Owner shall cover reasonable expenses necessary for:

• returning the Charterer and guests to the agreed redelivery location

• reasonable accommodation if required.

Option to Continue the Charter

In some cases, if both parties agree, the Charterer may choose to remain on board for the remainder of the Charter Period despite the disablement.

If this option is chosen, the Charterer will not pursue further claims against the Owner.