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Contract Types & Administration Flashcards

7 cards from real SSO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. In a time charter, what is typically meant by the 'redelivery' obligation?

    Answer: The charterer must return the vessel in the same condition as on delivery, fair wear and tear excepted

    Redelivery requires the charterer to return the vessel to the owner at the agreed place and in the condition it was received, allowing for normal wear and tear.

  2. What is the role of a 'P&I Club' (Protection and Indemnity Club) in relation to maritime contracts?

    Answer: It provides mutual insurance covering third-party liabilities not covered by hull insurance

    P&I Clubs are mutual insurance associations that cover shipowners' and charterers' third-party liabilities such as cargo damage, crew injury, pollution, and collision liability.

  3. Under the ISM Code, what document demonstrates that a ship management company has an approved Safety Management System?

    Answer: Document of Compliance (DOC)

    The Document of Compliance (DOC) is issued to a shipping company confirming its SMS meets ISM Code requirements; individual ships receive a Safety Management Certificate (SMC).

  4. What is 'deadfreight' in a voyage charter context?

    Answer: Compensation paid by the charterer for failing to load the agreed quantity of cargo

    Deadfreight is the amount payable by the charterer when they fail to provide the agreed cargo quantity, compensating the shipowner for the unused cargo space.

  5. Which charter party clause allows a shipowner to withdraw the vessel if hire is not paid punctually?

    Answer: Withdrawal clause

    The withdrawal clause entitles the shipowner to withdraw the vessel from the charterer's service without prejudice to any claims for arrears of hire if payment is not made on time.

  6. In the context of maritime security contracts, what is an ISPS Code Ship Security Plan (SSP) required to address?

    Answer: Measures for three security levels, restricted areas, and response to security threats

    The SSP must detail security measures for ISPS Security Levels 1–3, identify restricted areas, describe drills, and outline responses to security incidents or threats.

  7. Under a bareboat charter, who is responsible for crewing and maintaining the vessel?

    Answer: The bareboat charterer

    Under a bareboat (demise) charter, the charterer takes full responsibility for crewing, maintaining, and operating the vessel as though they were the owner.