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
What is the legal effect of incorporating an 'arbitration clause' into a charter party or bill of lading?
Answer: It mandates that disputes be resolved through arbitration rather than litigation
An arbitration clause requires the parties to submit disputes to an agreed arbitral tribunal (e.g., London or New York arbitration) instead of pursuing court litigation.
What is the 'New Jason Clause' used in charter parties and bills of lading?
Answer: It entitles the carrier to claim General Average contribution even where the casualty was caused by the carrier's negligence
The New Jason Clause, required under US law, preserves the carrier's General Average rights against cargo even when negligent navigation caused the casualty.
Under a voyage charter, when does 'laytime' typically begin to count?
Answer: After the vessel has arrived, is ready to load/discharge, and Notice of Readiness (NOR) has been given and accepted
Laytime commences after the vessel has arrived at the agreed destination, is ready for cargo operations, and a valid Notice of Readiness has been tendered and accepted.
Which document is the Ship Security Officer required to maintain as evidence of security drills and exercises conducted aboard?
Answer: Ship Security Record
The Ship Security Record (or security log) must document all security drills, exercises, threats, incidents, and inspections as required by the ISPS Code.
In maritime contract law, what does the term 'indemnity' mean in the context of letters of indemnity (LOI)?
Answer: A promise by one party to compensate another for losses arising from a specific action, such as releasing cargo without the original bill of lading
An LOI is a contractual promise to hold the carrier harmless from any resulting liability when cargo is released without presentation of the original bill of lading.
Under the MLC 2006 (Maritime Labour Convention), what financial security must shipowners provide related to seafarer employment contracts?
Answer: Security to cover outstanding wages, repatriation costs, and contractual claims in the event of abandonment
MLC 2006 requires shipowners to have financial security (typically P&I insurance) covering seafarers' unpaid wages, repatriation, and compensation claims if the ship is abandoned.
What is 'freight prepaid' notation on a bill of lading significant for in international trade?
Answer: It confirms freight has been paid by the shipper and the consignee owes no freight on delivery
A 'freight prepaid' bill of lading confirms the shipper has settled freight charges, so the consignee can take delivery without paying additional freight to the carrier.