Charter Contracts

1 Charter Contracts: Demise Type Demise Contract for Charter Yachts

If you are taking a charter there are always contracts that are going to be signed in between the boat and the guests. For everyone it spells out all the conditions of the charter and what will happen it something goes wrong. Comforting for everyone to have.

Most of the charter contracts in the Caribbean are done as fully inclusive. This means for one fee you charter the yacht, its furnishings, the crew that belongs on that yacht, and all the food and beverage for that period. There may be times when you are asked to sign a Demise Contract which is actually two contracts. One for the boat and one for the crew.

A Demise Contract has come about because according to Coast Guard Regulations, you cannot take passengers for hire as a commercial vessel if there numbers are between 7 and 12, without meeting not only a much more stringent inspection and great costs for the inspection. In many cases, it is impossible for the smaller charter yachts to meet the conditions if they take over 6 guests.

6 guests is the limit for an “uninspected vessel”. However, that does not mean that we are not subject to checks, it just means that we don’t have the onerous and expensive task of refitting things like: making all the hatches face backwards when open instead of foreward.

Why that regulation? Well to stop water and waves coming into the hatches. However, a wrong way facing hatch will also stop all the breeze coming into it to!

Flagshipvi is one of our local yacht clearinghouses, has put together a guide explaining Demise Contracts and how they work. I am sharing it with you here, as they can be a bit daunting looking a them!

2 Charter Contracts: Demise Type Demise Contract

What does all this mean? Basically it is just paperwork to keep the paperwork legal and stay within regulations!

Good article though Flagship, as I even needed clarification on parts of it…

Contact us for more information or booking 🙂