charter

verb

To hire, rent or lease for a temporary use; e.g. to hire or lease a vessel for a voyage

noun

An instrument emanating from the sovereign power, in the nature of a grant, either to the whole nation, or to a class or portion of the people, to a corporation, or to a colony or dependency, assuring to them certain rights, liberties, or powers. Such was the "Great Charter" or "Magna Charta," and such also were the charters granted to certain of the English colonies in America. A charter differs from a constitution, in that the former is granted by the sovereign, while the latter is established by the people themselves. A city's organic law.

Charter of municipal corporation consists of the creative act of incorporation, together with all those laws in force which relate to the incorporation, whether defining the powers of the corporation or regulating the mode of exercise thereof, and statute does not fail to become part of charter simply because it is not labeled as such. Opinion of the Justices, Del., 276 A.2d 736, 739.

An act of a legislature creating a business corporation, or creating and defining the franchise of a corporation.

Under modern statutes, a charter is usually granted by the state secretary of state, who acts under general statutory authority conferred by the state legislature.

Also a corporation's constitution or organic law; that is to say, the articles of incorporation taken in connection with the law under which the corporation was organized. The authority by virtue of which an organized body acts. A contract between the state and the corporation, between the corporation and the stockholders, and between the stockholders and the state.

See corporate charter.

Leasing or hiring of airplane, vessel, or the like.

See charter-party.

In old English law, a deed or other written instrument under seal; a conveyance, covenant, or contract.

@ bank charter

Document issued by governmental authority permitting a bank to operate and transact business.

Document issued by appropriate federal or state authority which permits corporation to commence business as a bank.

@ bareboat charter

Charter where ship owner only provides ship, with charterer providing personnel, insurance and other necessary materials and expenses.

A document under which one who charters or leases a boat becomes for the period of the charter the owner for all practical purposes. Reed v. The Yaka, 373 U.S. 410, 83 S.Ct. 1349, 10 L.Ed.2d 448.

Lease of vessel without a crew. Gillentine v. McKeand, C.A.Mass., 426 F.2d 717, 719.

One whereby charterer assumes full possession and control of the vessel and constitutes the only form of charter that purports to invest temporary powers of ownership in the charterer, Baker v. Raymond Intern., Inc., C.A.La., 656 F.2d 173, 182

@ blank charter

In old English law, a document given to the agents of the crown in the reign of Richard II with power to fill up as they pleased

@ charter agreement

See charter-party

@ charter of affreightment

See affreightment.

@ gross charter

Charter where ship owner provides all personnel and equipment and incurs other expenses such as port costs.

@ time charter

Charter wherein vessel is leased for specified time rather than for specified trip or voyage.

See also time (time charter)

+ time charter

A time charter is a specific and express contract by which the owner lets a vessel or some particular part thereof to another person for a specified time or use; the owner continues to operate the vessel, contracting to render services by his master and crew to carry goods loaded on the vessel, and the master and crew remain servants of the owner. Atlantic Banana Co. v. M. V. "Calanca", D.C.N.Y., 342 F.Supp. 447, 453.

A lease of vessel under which owner provides captain and crew who remain subject to owner's control. Gillentine v. McKeand, C.A.Mass., 426 F.2d 717, 719

Compare bareboat charter

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