Yacht charter without pitfalls – what to watch out for before signing the contract?

Chartering a yacht is becoming an increasingly popular way to spend a vacation. It provides a sense of freedom, the opportunity to discover new places, and a connection with nature, usually without crowds, hotel queues, and rigid schedules. A few clicks are all it takes to find the perfect yacht, select a date, and set off on the voyage of a lifetime. But before stepping onto the deck, it’s worth taking a closer look at what you’re signing. 

A charter agreement is not just a document to tick off “as a formality”. It’s a document that can have legal, financial, and organizational consequences. While there are good, proven contract templates used by reputable charter companies and brokers, in practice – especially in the local market – many contracts are hurriedly created or copied from unreliable sources. 

As a result, charterers often don’t know exactly what they’re paying for, what happens if something breaks, or what to do if the weather ruins their plans. This is a sure path to misunderstandings, unpleasant surprises… and ruined vacations. 

What exactly are you buying 

The most common issue is a lack of clarity about what the price covers. Sometimes, charges for final cleaning, fuel, port fees, or even bedding must be paid separately, even though charterers assumed everything was “included”. When a detailed breakdown is missing, unexpected additional charges can add up to several hundred euros. 

In such a situation, it’s important to check whether the contract you’re signing truly reflects what you’ve agreed upon with the owner. If you’re unsure about what’s included in the service you’re purchasing, ask and have it specified in the contract. 

Deposit – refundable or not 

Another issue is the deposit. It’s not uncommon for the contract to lack clarity on who will settle the deposit and when, what “damage” or “undamaged return” means, and to what extent the owner can withhold part of it. As a result, even small scratches on the hull or a missing anchor can lead to a loss of several thousand złoty (PLN). 

A contract will never cover 100% of possible situations. However, you can reduce your uncertainty by adding a simple clause stating that the deposit will only be forfeited for documented and justified costs of repair. You can also specify that ordinary wear and tear (e.g., small scratches requiring no action) does not result in the loss of the deposit. 

What to do if something breaks 

Another frequent problem is the lack of information on what to do in case of a breakdown or issues with the yacht. Air conditioning not working? Toilet broken? No radio? Poor lighting? If the contract is silent, you can’t expect a price reduction or any support during the trip. 

Of course, you agree to a working yacht, but what if any compensation can only be claimed after the vacation ends? It’s much better to plan for potential issues upfront. Don’t list every possible problem, but add a clause that if the yacht doesn’t meet the agreed-upon standards (i.e., what you discussed), you can demand a price reduction. Additionally, if the yacht does not meet safety requirements, the owner must provide a yacht of the same or higher standard or refund your money and repair the damage. 

Can you cancel the charter 

The cancellation of a charter is also an important issue. Contracts often don’t account for situations where the charterer – due to valid reasons – has to cancel the trip. A lack of flexibility in such cases can result in the loss of the entire deposit, even with significant advance notice. Be sure to define by when you can cancel and what happens to the deposit. 

Who is responsible for third-party damages 

It’s also worth paying attention to civil liability – who is responsible for damages caused to third parties. Sometimes, charterers are held responsible without realizing that the yacht lacks proper third-party liability insurance (OC) or hull insurance (casco). While this may seem like a minor detail, in case of an accident in the harbour or a collision, it can lead to very high costs. 

📌 We’ll discuss insurance issues (OC, casco, insurance deposits) in more detail in a separate article. 

Hidden costs and “minor” fees 

It’s also concerning when additional fees appear only after signing the contract—e.g., VAT, cleaning, port services. The final price can increase by 20–30% compared to what was initially agreed upon via email or phone. 

Make sure the contract clearly specifies—either directly or by referring to an attached price list—what you need to pay and for what. This is something you must know before signing. 

The contract only favours the owner 

Sometimes the contract contains very one-sided provisions – for example, the owner can change the yacht or cancel the charter without penalty, while the charterer faces harsh penalties for any changes. Such imbalances are a red flag. 

Without a protocol, you’re in trouble 

Finally, too often, the yacht’s technical condition is not documented at the time of pickup. The lack of photographic documentation, a protocol, or an equipment list will work against the charterer if the owner later claims “new” damage. 

A protocol ensures the safety of both parties, it is in everyone interest to sign it. For extra protection, always take detailed photos of the yacht on the day of pickup and return. 

This is not discouragement – just a warning 

Does all this mean that chartering a yacht isn’t worth it? Quite the opposite. It’s one of the best ways to spend a vacation – provided you know what you’re getting into. 

If you charter a yacht in the Mediterranean, there’s a good chance the owner or broker will use standard templates (e.g., MYBA Charter Agreement). However, even then, you’re still required to read the contract. Remember, ignorance of the law, including contractual law, is no excuse. 

Use the checklist before signing your charter agreement 

And finally, check our checklist. It will definitely come in handy! 

• Do you know exactly what the price covers (and what is charged extra)?
• Do you have a description of the yacht pickup and return procedure and the terms for the return of the deposit?
• Does the contract include contact details for someone responsible for breakdowns or complaints?
• Do you know what happens if you cancel the charter?
• Is the yacht covered by valid third-party liability and hull insurance?
• Do you need additional insurance – e.g., skipper’s liability?
• Is the contract “symmetrical” – do both sides have equal rights and obligations?
• Will there be a protocol and technical documentation of the yacht’s condition at pickup?