SECTION VI. Chartering of Vessels.
Chapter 2 Contract of Leasing Vessel.
Clause 215. Definition of Contract.
By the leasing contract, the Lessor shall undertake to deliver the vessel without a crew to the Lessee for use in merchant shipping during a specified period, at the conclusion of which the right of property for the vessel passes to the Lessee.
The Lessee shall undertake to pay a leasing cost including the payment for the use of the vessel and her value in accordance with the leasing contract (thereafter called a Contract).
The Contract concerning the Ukrainian state-owned vessel shall be concluded only with due observance of the rules of Clause 17 of this Code.
Clause 216. Proofs of Conclusion of Contract.
The Contract shall be concluded in writing only. The existence and contents of the Contract shall be proven on the basis of written evidence only.
Clause 217. Particulars of Contract.
The Contract shall indicate the names of the parties, the vessel's name, year of vessel's construction, vessel's Register class, tonnage or cargo capacity, engines' power, speed and fuel consumption as well as period of vessel's use following which the right of property for the vessel passes over to the Lessee, the amount and term of paying leasing installments, the place and time of delivering the vessel to the Lessee and other necessary data.
Clause 218. Seaworthiness of Vessel.
The Lessor shall undertake to deliver the vessel to the Lessee in a condition fit for using her for the purposes provided for by the Contract.
The Lessor shall be liable for any deficiencies of the vessel that existed at the moment of her delivery to the Lessee and which he did not declare when delivering the vessel.
The claims concerning the deficiencies of the vessel and other defects of her condition may be brought by the Lessee within a year from the day of vessel's delivery.
Clause 219. Operation of Vessel by Lessee.
The Lessee shall undertake to maintain the vessel in good order and bear expenses in connection with her maintenance and repairs.
Clause 220. Cancellation of Contract.
The Lessee shall have the right to cancel the Contract and to demand a reimbursement of the losses provided:
- the Lessor has not delivered the vessel to the Lessee within the term stipulated by the Contract;
- the vessel cannot be used by the Lessee as stipulated by the Contract because of the deficiencies mentioned in the second part of clause 218 of this Code.
The Lessor shall have the right to cancel the Contract and demand a return of the vessel if the Lessee has not paid the leasing installments within three months after payment date.
Clause 221. Redelivery of Vessel to Lessor.
When redelivering the vessel, the Lessor shall have the right to a part of a leasing payment for using the vessel. The leasing installments paid by the Lessee as a part of agreed price shall be returned to the Lessee.
The Lessee shall undertake to redeliver the vessel to the Lessor in the same condition as that on receiving her with due consideration of normal wear.
In case of the deterioration in vessel's condition, the Lessee shall refund the incurred losses to the Lessor.
The improvements of the vessel made by the Lessee if they can be (physically) separated, may be recovered by the Lessee in case the Lessor does not agree to compensate for their cost.