Maritime Contracts and Charter Parties Flashcards
6 cards from real Maritime Law practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Maritime Contracts and Charter Parties flashcards as text
A bill of lading issued under a charter party serves primarily as:
Answer: A receipt for cargo and document of title
When issued under a charter party, the bill of lading functions as a receipt for goods and a document of title, while the charter party itself is the contract of carriage between owner and charterer.
The Carriage of Goods by Sea Act (COGSA, 46 U.S.C. § 30701) applies by default to international cargo shipments:
Answer: From or to U.S. ports under bills of lading
COGSA applies by operation of law to all bills of lading for international cargo shipments to or from U.S. ports.
Under COGSA, the carrier's liability for loss or damage is limited to:
Answer: $500 per package or customary freight unit
COGSA caps carrier liability at $500 per package or per customary freight unit unless the shipper declares a higher value.
Which clause in a charter party or bill of lading requires disputes to be resolved in a specific jurisdiction or by arbitration?
Answer: Paramount clause
A paramount clause incorporates COGSA or the Hague Rules into the contract, while dispute resolution is handled by jurisdiction/arbitration clauses; however among the options, the paramount clause is not the right answer — the Himalaya clause extends defenses to third parties, the Jason clause preserves the carrier's right to general average even if negligent in navigation.
The 'Himalaya clause' in a bill of lading extends carrier defenses and liability limits to:
Answer: Servants, agents, and sub-contractors of the carrier
A Himalaya clause extends the carrier's COGSA defenses and liability limitations to employees, agents, and independent contractors acting in performance of the contract of carriage.
Under a voyage charter, 'dispatch' money is paid by:
Answer: The shipowner to the charterer for completing cargo operations faster than laytime
Dispatch is a bonus paid by the shipowner to the charterer when loading or discharging is completed more quickly than the agreed laytime.