Industry Reference
The MYBA Charter Contract Explained
The international standard yacht charter agreement, clause by clause. Reference guide for charterers, owners, and brokers.
What MYBA is and why every Mediterranean charter uses it
Best suited for
- First-time charterers wanting to understand what they're signing
- Yacht owners considering chartering their vessel
- Brokers comparing MYBA to alternative contract structures
- Legal counsel reviewing charter contracts for clients
MYBA contract structure: the 12 clauses that matter most
1. The Parties: Owner (often a yacht-holding company), Charterer (you or your party), and Broker (us). Each party's role and authority is defined. 2. The Vessel: Detailed specification including length, beam, draft, sleeping capacity, crew count, and equipment. This is what you're contracting for; deviations from this on delivery are grounds for refund. 3. The Period and Cruising Area: Start and end dates, embarkation and disembarkation ports, geographic limits of cruising. Greek charter contracts often include a cruising-area note like 'Greek waters, Cyclades and Saronic Gulf'. 4. The Charter Rate: The base fee. Paid in two instalments (typically 50% on signing, 50% 30 days before charter). Greek VAT is calculated on this number. 5. APA (Advance Provisioning Allowance): A separate sum (typically 25-35% of base rate) paid by charterer to be held by captain and spent on fuel, food, drinks, dockage, and other running costs. Audited at end of charter; unused balance returned. 6. Crew and Crew Gratuity: Crew is provided by owner; gratuity (10-18% of base rate convention) is paid by charterer in cash to the captain at end of charter. 7. Delivery and Redelivery: Conditions for accepting the yacht and returning it. Inspection rights and refund triggers. 8. Insurance: Yacht insurance is owner's responsibility; charterer is named as additional insured for the charter period. 9. Loss or Damage: Liability limits, charterer's caution money (security deposit), and dispute resolution. 10. Force Majeure: What happens if the charter cannot proceed due to events outside control (typically refund minus expenses). 11. Cancellation: Both owner and charterer cancellation rights and penalties. Usually significant — charterer cancellations within 90 days forfeit most of the base rate. 12. Law and Jurisdiction: English law standard for international charters; specific jurisdiction (Athens, Monaco) for Mediterranean-specific contracts.
Notes from George
- The MYBA contract is not negotiable on structure but specific clauses (delivery dates, cruising area, cancellation flexibility) often are. Brief us at booking.
- Greek charter VAT depends on itinerary. If you can include 2-3 days in Turkish or Albanian waters (more than 50% of charter), VAT drops from 24% to 12%. Plan with the captain.
- Caution money (security deposit) is typically €25,000 to €100,000 depending on yacht size. Refunded at end of charter unless damage.
- Force majeure clauses were heavily tested during COVID-19. Current MYBA template is much more charterer-protective than pre-2020 versions; this matters if booking 6+ months ahead.
- Always have legal counsel review the contract for charters above €100,000. The MYBA structure is standard but specific addenda vary; counsel can identify protective additions worth requesting.
Frequently asked
About the myba charter contract explained
What does MYBA stand for?
Worldwide Yachting Association (formerly Mediterranean Yacht Brokers Association). MYBA is the international body that publishes the standard charter contract used in most Mediterranean yacht charters.
Is the MYBA contract negotiable?
The core structure is standard and not negotiable. Specific clauses (delivery dates, cruising area, cancellation flexibility, payment schedule) are often negotiable. We negotiate on the charterer's behalf as part of the booking process.
Why do Mediterranean charters use MYBA?
MYBA contracts have been the industry standard since the 1990s. They balance charterer and owner protections, are well-tested in courts of jurisdiction, and are understood by yacht insurance underwriters. Alternative contracts exist but the MYBA structure is the path of least friction.
What's the difference between MYBA APA and an all-inclusive charter?
MYBA APA is a transparent running account — charterer pays up front, captain spends on actual expenses, unused balance refunded. All-inclusive charters bundle everything into a single fixed price with no refund of underused budget. APA is more common; all-inclusive is offered by some owners (see our all-inclusive page).
Where is the MYBA contract law jurisdiction?
Typically English law for international charters (this is the MYBA standard). Some owners specify Monaco or jurisdiction-specific maritime law. Greek charters often use English law with Greek-specific VAT and tax addenda. The jurisdiction is stated in clause 12 of the contract.