Charter Guide
Reading a Charter Contract: The MYBA Agreement
The MYBA Charter Agreement is the standard contract behind almost every Mediterranean charter. Knowing which clauses matter, and why, lets you read it with confidence rather than trepidation.
In short
The MYBA Charter Agreement is the industry-standard contract for crewed yacht charters. It sets out the parties, the yacht, the charter period, the cruising area, the charter fee and payment schedule, the APA, delivery and redelivery, cancellation, insurance, and force majeure. A deposit of typically 50 per cent is due on signing, with the balance around 30 days before, and the funds are held by a stakeholder.
On this page
Why a standard contract exists
Chartering involves significant sums, an owner entrusting a valuable asset to strangers, and a charterer entrusting a holiday and a large payment to people they have not met. A recognised, balanced contract makes that exchange workable. The MYBA Charter Agreement — published by MYBA, The Worldwide Yachting Association — is that document across the Mediterranean and much of the world.
Its virtue is neutrality. It was drafted to hold the interests of owner and charterer in balance, so neither side begins from a form written entirely for the other. Because it is a familiar standard, brokers, central agents, and captains all know its terms, and any clause can be explained plainly. This guide is a reference companion; for a more narrative walk-through, see the Journal feature on reading a charter contract, which this piece complements.
Parties, yacht, period, and area
The opening clauses establish the fundamentals, and they repay careful reading because everything else rests on them.
- The parties — the Owner (often an owning company rather than an individual), the Charterer, and the broker or stakeholder. The Charterer named is responsible for the agreement, so ensure the details are correct.
- The yacht — identified precisely by name, flag, registration, and specification. This fixes exactly which vessel you are chartering, not merely a class of yacht.
- The charter period — the start and end dates and times of delivery and redelivery. This defines the window you are paying for, down to the hour.
- The cruising area — the geographic range within which the yacht may operate, such as the Balearic Islands or the Western Mediterranean. Straying beyond it requires the owner's agreement.
These four points turn a general intention into a specific, enforceable arrangement. If any is wrong — a misspelt name, an approximate date, too narrow an area — it is far easier corrected before signing than after. Our chartering explained guide sets out how these are agreed during the process.
The charter fee and payment schedule
The charter fee is the headline price for the yacht and crew over the period, as covered in what is included in a charter rate. The agreement sets not only the amount but the schedule by which it is paid, and this schedule is one of the clauses to read most closely.
The customary structure is a deposit of 50 per cent of the charter fee on signing the agreement, with the balance due around 30 days before the charter begins — often stated as a specific number of days, such as 30 or sometimes 60. Both instalments are typically paid to the stakeholder rather than directly to the owner, which protects both parties until the charter is under way.
| Stage | Typical timing | Amount |
|---|---|---|
| Deposit | On signing | 50% of charter fee |
| Balance | ~30 days before start | Remaining 50% of fee |
| APA | With the balance | 25–35% of fee |
The exact percentages and timings can vary by yacht and are stated in the agreement itself, so read them rather than assume. Missing a payment date has consequences, since late or non-payment can be treated as a default, so note the balance date carefully once the contract is signed.
A misspelt name, an approximate date, or too narrow an area is far easier corrected before signing than after.
The APA and security
The agreement records the Advance Provisioning Allowance — its percentage, and when and how it is paid. The APA itself is explained fully in what "plus expenses" means; in the contract it appears as a defined obligation and a defined mechanism for accounting and refund at the end of the charter.
Separately, the agreement addresses security for the yacht. On many charters the APA and the ordinary conduct of the charter suffice, but some owners require the funds to be handled in a particular way, or a security element to cover potential damage beyond ordinary wear. Where such provisions appear, they set out what is held, by whom, and how it is returned. Reading these clauses tells you exactly what is expected of you and what protects you in turn.
Delivery and redelivery
Delivery is the moment the yacht is handed to you, ready and at the agreed place and time; redelivery is when you return it at the end. The agreement specifies both ports and times, and this matters more than it first appears.
The clauses set out the owner's duty to deliver the yacht in proper condition and on time, and your duty to redeliver it at the agreed place and hour. They also address what happens if delivery is delayed — for instance through a technical fault or a preceding charter overrunning — including provisions for a substitute arrangement, an extension, or a refund of the affected portion. Because the whole holiday hinges on the yacht being where it should be when it should be, these are clauses worth understanding before you sign, not after a problem arises.
Cancellation
The cancellation clause governs what happens if the charter does not proceed, and it is among the most consequential in the agreement. Under the MYBA form, a charterer who cancels remains liable for the charter fee according to a schedule, because the owner has held the yacht off the market for those dates and turned away other bookings.
In broad terms, the deposit is at risk from the moment of signing, and the balance becomes payable as the charter approaches, whether or not you ultimately sail. The precise sums depend on how far ahead you cancel. This is the principal reason to consider charter cancellation and curtailment insurance, which can cover you against having to cancel for a genuine, insured reason such as illness. A good broker will raise this at the outset; if it has not been mentioned, it is a fair question to put when you make an enquiry.
Insurance and force majeure
Two protective clauses close much of the risk that neither party controls.
Insurance. The owner is obliged to keep the yacht insured for charter use, covering the vessel and its ordinary operation, including cover relating to the crew. This is part of what your charter fee secures. It does not extend to your personal effects, medical needs, or cancellation, which is why personal travel and charter-specific insurance is sensible on your side.
Force majeure. This clause addresses events beyond either party's control — severe weather, government action, and similar — that prevent the charter proceeding as agreed. It sets out how the parties are released or the charter adjusted when such an event strikes, so that an act of nature is not treated as anyone's breach. Understanding it removes a common anxiety: the contract already contemplates the storm.
The stakeholder and central agent
Finally, two roles that run through the whole agreement. The stakeholder — usually the central agent or the charterer's broker — holds the charter fee and often the APA on behalf of both parties. Funds are released to the owner in line with the agreement, typically once the charter is safely under way. This arrangement is a genuine protection: your money is not simply handed over on trust but held to defined terms until obligations are met.
The central agent represents the owner and the yacht, managing its calendar and terms, while your broker represents you. The two negotiate the agreement between them, and the stakeholder function sits alongside. Understanding who holds what, and on whose behalf, is the last piece of reading a charter contract with confidence. Terms are defined in the glossary, and our journal returns to the finer points across the year. When you are ready to charter, our chartering overview and fleet are the place to begin.
Common questions
What is the MYBA Charter Agreement?
It is the industry-standard contract for crewed yacht charters, published by MYBA, The Worldwide Yachting Association, and used across the Mediterranean and much of the world. Drafted to balance the interests of owner and charterer, it sets out the parties, yacht, period, cruising area, fee, APA, delivery, cancellation, and insurance. Because it is a recognised standard, its terms are familiar to brokers, agents, and captains alike.
How much deposit is due, and when is the balance paid?
Typically a deposit of 50 per cent of the charter fee is due on signing the agreement, with the balance payable around 30 days before the charter begins, alongside the APA. The exact percentages and timings are stated in the contract and can vary by yacht, so read them carefully. Payments usually go to a stakeholder rather than directly to the owner.
What happens if I have to cancel?
Under the MYBA form you remain liable for the charter fee according to a cancellation schedule, because the owner held the yacht off the market for your dates. The deposit is at risk from signing, and the balance becomes payable as the charter approaches. This is why charter cancellation and curtailment insurance is worth considering, covering you against cancelling for a genuine, insured reason.
What do delivery and redelivery mean in the contract?
Delivery is the handover of the yacht to you at the agreed port, time, and condition; redelivery is your return of it at the end. The agreement fixes both ports and times and sets out what happens if delivery is delayed, including substitute arrangements, extensions, or a refund of the affected portion. Because the holiday depends on the yacht being ready on time, these clauses reward attention.
Who holds my money before the charter?
A stakeholder, usually the central agent or your broker, holds the charter fee and often the APA on behalf of both parties. Funds are released to the owner in line with the agreement, typically once the charter is safely under way. This protects you: your payment is held to defined terms rather than handed over on trust, and both sides are covered until obligations are met.
Does the contract cover bad weather?
Yes, through the force majeure clause, which addresses events beyond either party's control, such as severe weather or government action, that prevent the charter proceeding as agreed. It sets out how the parties are released or the charter adjusted, so an act of nature is not treated as a breach by anyone. The captain also retains authority over safety, adjusting the itinerary as conditions require.
This guide is general information, not legal, tax or insurance advice. To plan a charter, make an enquiry or browse the yachts.