Charter Agreement Template for United States

A Charter Agreement lays out the core terms when someone wants to lease or rent a specific asset - often a vehicle, vessel, or aircraft - for a set period. It spells out who's responsible for what, including maintenance, insurance, operating costs, and any usage restrictions.

Common in maritime and aviation sectors, these agreements protect both the owner and the person leasing the asset. They typically include key details like payment schedules, permitted geographical areas of operation, crew requirements, and what happens if things go wrong. Under U.S. transportation laws, certain charter agreements must be registered with federal agencies like the FAA or Maritime Administration.

Use a Charter Agreement when you need temporary control of expensive assets like ships, planes, or specialized equipment without buying them outright. This arrangement works particularly well for seasonal business needs, one-time projects, or when testing new market opportunities before making major investments.

Many businesses turn to Charter Agreements during peak demand periods, when expanding into new territories, or for specialized operations requiring unique equipment. The agreement becomes essential when dealing with high-value assets where clear operational control, liability protection, and regulatory compliance need documentation. Industries like shipping, aviation, and offshore energy rely heavily on these contracts to manage risk and maintain operational flexibility.

• Bareboat Charter: Grants complete operational control and responsibility to the charterer, who handles crew, maintenance, and insurance - common in maritime and yacht leasing
• Time Charter: Owner maintains operational control while providing vessel and crew for a set period, with charterer directing cargo and route decisions
• Voyage Charter: Covers specific trips between designated ports, with owner handling all operations and charterer paying per voyage
• Demise Charter: Similar to bareboat but includes transfer of legal possession, giving charterer nearly all owner-like responsibilities
• Wet Charter: Owner provides vessel, crew, and all operational services - popular in aircraft and specialized equipment leasing

• Asset Owners: Companies or individuals who own vessels, aircraft, or equipment and want to generate income through temporary leasing
• Charter Companies: Businesses that specialize in managing and arranging charter services, often acting as intermediaries
• Corporate Lessees: Organizations that need temporary access to specialized equipment or transport without the commitment of ownership
• Maritime Attorneys: Legal experts who draft and review agreements to ensure compliance with admiralty law and transportation regulations
• Insurance Providers: Companies that assess risk and provide coverage specific to charter operations

• Asset Details: Gather complete specifications, registration numbers, and current condition documentation of the vessel, aircraft, or equipment
• Usage Parameters: Define operational scope, geographical limits, permitted activities, and duration of charter period
• Financial Terms: Calculate charter rates, security deposits, insurance requirements, and responsibility for operating costs
• Party Information: Collect legal names, contact details, and authority verification for all involved parties
• Compliance Check: Review relevant industry regulations, required permits, and certification requirements before finalizing agreement terms

• Parties and Assets: Complete identification of all parties and detailed description of chartered property
• Term and Payment: Charter duration, payment schedule, fees, and conditions for renewal or early termination
• Operational Control: Clear assignment of responsibilities for maintenance, crew, insurance, and operational decisions
• Liability Provisions: Risk allocation, indemnification terms, and insurance requirements
• Compliance Terms: Required certifications, permits, and adherence to maritime or aviation regulations
• Default Remedies: Consequences of breach, dispute resolution procedures, and governing law

A Charter Agreement differs significantly from an Asset Purchase Agreement in several key ways. While both deal with valuable assets, their fundamental purposes and outcomes are quite different.

• Ownership Transfer: Charter Agreements establish temporary use rights without transferring ownership, while Asset Purchase Agreements permanently transfer property title to the buyer
• Duration and Control: Charters operate for a defined period with specific usage terms, whereas purchase agreements create permanent ownership rights
• Financial Structure: Charter payments typically involve recurring fees for use, unlike purchase agreements which usually require a single large payment or structured installments for full ownership
• Regulatory Requirements: Charter Agreements focus on operational compliance and temporary use restrictions, while purchase agreements emphasize transfer documentation and permanent ownership obligations