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6 Liberty to Sublet

Time Charters


Liberty to Sublet

Liberty to Sublet

“16. Charterers to have liberty to sublet the vessel for all or any part of the time covered by this Charter, but Charterers remaining responsible for
17. the fulfillment of this Charter Party.”

Effects of sub-charter

6.1 Line 16 of the New York Produce form gives the charterers the express right to sub-charter the ship during the currency of the head time charter. A sub-time charter (or a sub-voyage charter) does not of itself create any contractual relationship between the owners and the sub-charterers. The owners may not, therefore, sue the sub-charterers, or be sued by them, under or by virtue of the head charter or the sub-charter. This is in accordance with the principle that a contract cannot, generally, confer rights or impose obligations on persons who are not parties to that contract. (The mere liberty to sub-contract will not engage the Contracts (Rights of Third Parties) Act 1999, so the sub-charterers will not enjoy rights under the head charter by virtue of that Act, nor will the owners under the sub-charter.)

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