What's new
Home / What's New / Whats new detail
Back
Force Majeure and Charter Agreements
Keeping abreast with key information during the pandemic
During this time of uncertainty, H&V Yachting is on-call to provide information and advise you on what you need to know now regarding yacht-related questions. To that end, we think this article by Robert Allen Law provides important insight into managing charter issues which are impacting numerous charter professionals and companies. It provides guidance on how the industry’s standard contracts for charters deal with unforeseen circumstances such as the Coronavirus.
Prior to the Coronavirus pandemic, many brokers, dealers, manufacturers, buyers, sellers, owners and charterers had transactions well underway and many are now uncertain as to what will happen to those deals as important dates inch closer and government restrictions grow more severe. Your contract’s force majeure clause is the key provision to understanding how risk is allocated due to a delay or cancellation caused by the Coronavirus.
What is "Force Majeure?"
Force majeure is a Latin term used within the law that means an unforeseeable circumstance that prevents a party from fulfilling their obligations under a contract. Not all force majeure clauses are created equally, however, and the effect of such a clause is entirely dependent on the language used in your particular agreement. Some force majeure clauses may allow for a temporary suspension of performance, while others may allow for immediate termination of the agreement, or both. It is important that you carefully read the force majeure clause in your contract to determine your rights and responsibilities under the agreement.
Force Majeure and Charter Agreements
Both the Mediterranean Yacht Brokers Association (“MYBA”) Standard Charter Agreement and the American Yacht Charter Association (“AYCA”) Recreational Bareboat Charter Agreement have force majeure provisions. The force majeure provisions in the two agreements are similar, as are the contractual consequences should a force majeure event should occur...
To go on reading click the link https://www.robertallenlaw.com/force-majeure-in-yacht-charter-agreements/
Prior to the Coronavirus pandemic, many brokers, dealers, manufacturers, buyers, sellers, owners and charterers had transactions well underway and many are now uncertain as to what will happen to those deals as important dates inch closer and government restrictions grow more severe. Your contract’s force majeure clause is the key provision to understanding how risk is allocated due to a delay or cancellation caused by the Coronavirus.
What is "Force Majeure?"
Force majeure is a Latin term used within the law that means an unforeseeable circumstance that prevents a party from fulfilling their obligations under a contract. Not all force majeure clauses are created equally, however, and the effect of such a clause is entirely dependent on the language used in your particular agreement. Some force majeure clauses may allow for a temporary suspension of performance, while others may allow for immediate termination of the agreement, or both. It is important that you carefully read the force majeure clause in your contract to determine your rights and responsibilities under the agreement.
Force Majeure and Charter Agreements
Both the Mediterranean Yacht Brokers Association (“MYBA”) Standard Charter Agreement and the American Yacht Charter Association (“AYCA”) Recreational Bareboat Charter Agreement have force majeure provisions. The force majeure provisions in the two agreements are similar, as are the contractual consequences should a force majeure event should occur...
To go on reading click the link https://www.robertallenlaw.com/force-majeure-in-yacht-charter-agreements/
