CHARTER PARTY. An agreement by which the owners of a ship, or their agents. agree to place the vessel at the disposal of a merchant, the charterer, for the convey ance of a full cargo of goods. A charter party may be for one or more voyages or for a definite period of time, or it may effect a demise of the ship for any length of time that may be agreed upon.
The wording of the agreement varies somewhat according to the trade in connec tion with which it is used. The following is a specimen of a charter-party :— The stamp duty is sixpence. See the following sections of the Stamp Act, 1891 : " 49. (I) For the purposes of this Act the expression ' charter-party ' in cludes any agreement or contract for the charter of any ship or vessel or any memorandum, letter, or other writing between the captain, master, or owner of any ship or vessel, and any other person for or relating to the freight or conveyance of any money, goods, or effects on board of the ship or vessel.
(2) The duty upon a charter-party may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the instrument is last executed, or by whose execution it is completed as a binding contract.
50. Where a charter-party is first executed out of the United Kingdom without being duly stamped, any party thereto may, within ten days after it has been first ceived in the United Kingdom, and before it has been executed by any person in the United Kingdom, affix thereto an adhesive stamp denoting the duty chargeable thereon, and at the same time cancel such adhesive stamp, and the instrument when so stamped shall be deemed duly stamped " 51. A charter-party may be stamped with an impressed stamp after execution upon the following terms ; that is to say, " (I) Within seven days after the first execution thereof, on payment of the duty and a penalty of four shillings and sixpence : (2) After seven days, but within one month after the first execution thereof, on payment of the duty and a penalty of ten pounds ; and shall not in any other case be stamped with an impressed stamp.''