Typical management contracts stipulate that your boat will be maintained to the “highest industry standards” or similar wording. Unfortunately, this does not mean much. Here`s our most important tip: Join us! When selling a boat, rental companies act as brokers or traders. Therefore, the warranty on the yacht is not borne by them, but by the boat builder, who in turn carries the guarantee for the suppliers he uses (power plant, anchor winch, sails, etc.). However, during the management contract, your charter company will act or should act as your representative to enforce the warranty in case of defect of the boat or any of its main components, especially if you purchased the boat from them and they acted as a dealer. Failure or hindrance: If, at any time after delivery, the yacht is taken out of service by machine failure, grounding, collision or other causes to prevent reasonable use of the yacht by the charterer for an uninterrupted period of 24 hours or more, then (unless such loss of use is caused by an action, negligence or omission of the charterer, if the OWNER is entitled to reimbursement of damages, etc. of the charterer), a refund will be made after the expiry of the 24 hours lost or, alternatively, if agreed, the charter period will be extended. At the end of the lost time of 24 hours, if the charterer agrees, the OWNER will replace the yacht with at least one similar or better vessel. If the charterer decides to cancel the rest of the rental period, the OWNER will reimburse the rental fee in proportion to the unused period. If your yacht is parked in a hurricane-prone area like the Caribbean, Bahamas, or Florida, you`ll want to know what the plan and procedures look like in the event of a hurricane.
Breakdown or obstruction: If the yacht is deactivated to the extent that it cannot be repaired within 48 hours or a period of one fifth of the rental time, whichever is longer and cannot be replaced by a similar yacht, the charterer may terminate this contract by informing the OWNER. The refund, if possible after such termination, will be made by the OWNER in proportion to the part of the charter period that began after the time of the loss or obstacle. Another important area that is often left out is transparency. There is a perception that yachting doesn`t have to be as expensive as it is. All the homeowners I met – who were all homemade men and women – care about getting value. And they are rightly worried. In some circles, receiving “commissions” and “small thanks” – which can actually be highly illegal bribes – is so prevalent that it has become normal. .