Charterparty Law and Legal Definition
Charterparty is the instrument by which a vessel is leased. It was a contract by which a ship, or a principal part of it, is leased by the owner, to a merchant for the conveyance of goods on a predetermined voyage to one or more places or for a specified period of time. It can also be a special contract between the ship owner and charterer, especially for the carriage of goods at sea.
The term is derived from ‘charta partita’ which means a deed of writing divided. The charterparty was prepared in two parts, the ship owner retaining one part and the charterer the other.