Who is?

Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-17 by Virtualshipbroker

Wednesday, December 1, 2010

Point of clarification about SUBJECTS

The word SUBJECTS in shipping speak is a shortened way of saying

Subject to "charterers approval" within 24 hours
Subject to "Stem in order" within 2 days
Subject to "my dog not eating my homework"..

++

You can have 'subjects' in any kind of negotiation. When I bought a house recently the agreement was 'subject to pest inspection' - withing 3 days. Another popular one is 'subject to finance' - 7 days.

So the key here is that 99 percent of the terms and conditions are agreed and now we are just waiting on the 'subjects' before the deal is confirmed. During the waiting period (on subjects) it is not ok to try and re-negotiate the terms and conditions already agreed. That is frowned upon in just about any negotiation...to be sure!



Hope this helps

VS - "Every day above ground is a good day" - Scarface

4 comments:

  1. Hi VS

    Good day,

    I have a question pertaining to Subjects. Sorry for being late as we are already into a new week & topic. The question is related to " Subject to details "

    If main terms are agreed on Sub to Details, will it be legally considered as a contract? Or it becomes a contract only after both parties reach an agreement of Details (Rider Clauses)?
    What if after agreeing on main terms, the parties could not reach an agreement of Details?

    Plsd to hear

    With Rgds
    Varun

    ReplyDelete
  2. Hi Varun

    99 percent of occassions there is no contract until all subs are lifted!

    The final 1 percent is when people kick up a stink and spend thousands using lawyers to try and resurrect a deal.

    Rgds
    VS

    ReplyDelete
  3. Hi VS

    Thanks your's..But in most of the cases vessel will even start loading before CP is signed, and in some cases the parties are not even bothered to sign CP, and the recap act as the final contract.

    Can you please explain?

    Varun

    ReplyDelete
  4. I never said anything about a signed cp - I just said a contract is in place when all subjects are lifted.

    It is tru that in shipping a contract doesnt necessarily need to be signed to be binding. This has a historical precedent due to the time differences and geographical distances between parties.

    ReplyDelete