A brokerage commission at the rate stated in Box 20 on the freight earned is due to the party mentioned in Box 20. In case of non-execution at least ⅓ of the brokerage on the estimated amount of freight and dead-freight to be paid by the Owners to the Brokers as indemnity for the latter’s expenses and work. In case of more voyages the amount of indemnity to be mutually agreed.
The name of the broker and the rate of commission to which he is entitled are to be inserted in Box 20 and his entitlement is generally founded upon his procuring of the charter, 1 even if it is referable to subsequent events or considerations. Unlike many forms of charter, the Gencon form does not expressly state by whom the payment of commission is to be made. Since the freight is payable “without discount” under clause 4 and since it is the owner who is responsible for payment of the broker’s indemnity in case of non-execution under the second paragraph of clause 14, the intention appears to be that the charterer is to pay freight without deduction of commission, and that it is the owner who is responsible for payment to the broker.
The rest of this document is only available to i-law.com online
If you are already a subscriber, please enter your details below to log in.