Contract Types & Administration Flashcards
7 cards from real SSO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Types & Administration flashcards as text
Under a time charter party, who is responsible for the operational costs such as fuel and port charges?
Answer: The charterer
Under a time charter, the charterer bears operational costs like fuel (bunkers) and port charges while the shipowner covers capital and maintenance costs.
What is a 'lumpsum freight' arrangement in a voyage charter?
Answer: A fixed freight amount regardless of the quantity of cargo loaded
Lumpsum freight is a fixed total amount agreed regardless of how much cargo is actually loaded, shifting cargo-quantity risk to the charterer.
Which clause in a charter party typically addresses the ship's speed and fuel consumption?
Answer: Performance warranty clause
The performance warranty clause specifies the ship's guaranteed speed and fuel consumption, forming a basis for off-hire or damages claims if not met.
In maritime contracts, what does 'demise charter' (bareboat charter) primarily transfer to the charterer?
Answer: Operational and possessory control of the vessel
A bareboat/demise charter transfers full possession and operational control of the vessel to the charterer, who then acts as the de facto owner.
What is the purpose of the 'off-hire' clause in a time charter?
Answer: To suspend hire payments when the vessel cannot perform the contracted service
The off-hire clause suspends the charterer's obligation to pay hire when the vessel is unable to perform due to breakdown, repairs, or other specified events.
Which document evidences the terms of carriage between a shipper and a carrier when no charter party exists?
Answer: Bill of lading
A bill of lading serves as the contract of carriage, receipt of goods, and document of title when goods are shipped without a separate charter party.
What is 'laytime' in the context of a voyage charter party?
Answer: The period allowed for loading and discharging cargo without extra charge
Laytime is the agreed period within which the charterer must complete loading and/or discharging operations before demurrage charges begin.