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Voyage Charters


Page 820

Chapter 24

Brokerage

14. Brokerage 141
  A brokerage commission at the rate stated in Box 20 on the freight 142
  earned is due to the party mentioned in Box 20. 143
  In case of non-execution at least ⅓ of the brokerage on the estimated 144
  amount of freight and dead-freight to be paid by the Owners to the 145
  Brokers as indemnity for the latter’s expenses and work. In case of 146
  more voyages the amount of indemnity to be mutually agreed. 147

24.1 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.

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