Yacht Management Agreement

Posted on April 20, 2022 · Posted in Uncategorized

The OWNER shall not be liable for any loss or damage to personal property or any injury suffered by the CHARTERER or any member of its affiliate during the term of this Charter, whether such loss or injury occurs on board the Yacht or elsewhere, unless such loss, damage or injury is the direct and immediate result of the SOLE negligence of the OWNER. Specifically, but without limiting the foregoing, the OWNER and its insurance insurers assume no responsibility for accidents, injuries or deaths related to the yacht`s dinghy, swimming and/or the use of snorkeling, masks or related equipment (such as diving equipment), water skiing, windsurfing, boats, spinnaker flies, Halyard flies or any other sports equipment, whether provided by the OWNER or CHARTERER, or not. 10. SAILING RESTRICTIONS: The CHARTERER undertakes to limit the yacht`s cruise to the cruising areas indicated on the 1st page of this contract. 5. FORCE MAJEURE: Force majeure is defined as any cause due to force majeure, accidents, natural disasters, weather conditions or other events beyond the reasonable control of the OWNER and not caused by the negligence of the OWNER. No guarantee is given as to the adequacy of the weather in relation to this Charter. If a named storm threatens or is likely to threaten the intended location of the charter yacht, as determined by the master in his or her sole discretion, the master has the option to terminate or cancel the charter at any time if he deems it necessary. No refunds will be given for a weather-related cancellation. 12: ACCIDENTS: The OWNER accepts that, if the yacht suffers a failure of the machine after delivery or is deactivated or damaged by fire, grounding, collision or other causes to prevent its use by the CHARTERER for a period of twenty-four (24) consecutive hours or more, or if the yacht is lost or if such damage is so great, that the yacht cannot be, or is not repaired within twenty-four (24) hours, none of which is caused by an act or omission of the CHARTERER, the CHARTERER has the right to terminate the charter. The OWNER must provide the CHARTERER with a pro-rated refund of all charter costs from the time of loss or damage. Typical management contracts stipulate that your boat will be maintained to the “highest industry standards” or similar wording. Unfortunately, this does not mean much.

Here`s our most important tip: Join us! 6. AUTHORITY: The OWNER guarantees that the captain meets all the necessary requirements to legally order the yacht in the chartered area. Although it is agreed that the CHARTERER may determine the general movements and destination of the yacht within the limits of this Agreement, it is assumed that the Master is in full command and that the CHARTERER undertakes to respect his judgment regarding the release, navigation, weather conditions, anchorages and other relevant matters. 13. DRUGS AND OTHER ILLEGAL ACTIVITIES: THE USE, TRANSPORTATION OR POSSESSION OF ILLEGAL DRUGS OR CLOTHING (INCLUDING MARIJUANA) OR OTHER CONTRABAND OR PARTICIPATION IN ANY OTHER ILLEGAL ACTIVITY IS STRICTLY PROHIBITED. Participation in any of these activities by the CHARTERER or a guest of the party constitutes a violation of the Charter and will result in the immediate termination of this Agreement without refund of payments made by the CHARTERER. The CHARTERER is responsible for the loss or damage caused to the yacht due to such violations and will be brought ashore to the next port of call. Management agreements must therefore all have an effective anti-corruption policy – which helps protect managers in the event that an employee is found to have offered or accepted bribes. And as long as the owner`s consent is in place, commissions can be legally paid and received – subject to other regulatory requirements for financial services.

In addition, managers must agree that their accounts relating to the respective yacht are available to the owner for inspection. In some jurisdictions, these accounts may be considered the exclusive property of the manager, resulting in litigation and wider disclosure in the event of a dispute. .