Can a Charter Agreement be signed electronically?

Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, electronic signatures are legally valid if intent, consent, attribution, and retention are met. Certain narrow exceptions may still require wet signatures.

When is notarization still required?

Notarization depends on state law and the agreement’s content; if a state or third party (e.g., title company) requires notarization or a notary acknowledgement, obtain a notary or use RON where permitted.

How do I correct a mistake after signing?

If an error is found, execute an amendment or correction document signed by all parties. Avoid markup changes on the signed original; record the amendment and attach it to the executed file.

What authentication level should I use?

Use email + SMS code for most commercial charters; increase to KBA or government ID verification for high-value assets or regulated transport to reduce repudiation risk.

How do I revoke or cancel a Charter Agreement?

Follow the termination provisions in the agreement; if revocation is by mutual consent, document it in a signed termination or release. For unilateral cancellations, confirm notice and cure provisions before action.

How should I store signed agreements?

Retain signed copies and the audit trail in a secure system with TLS and AES-256 encryption; maintain access logs and backup copies in accordance with retention policies.

Electronic Signature
Templates
Other
Charter Agreement

Charter Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What a Charter Agreement Covers and When it’s Used

A Charter Agreement is a legally binding contract that grants temporary use or possession of an asset (for example an aircraft, vessel, vehicle, or specialized equipment) from an owner or lessor to a charterer or lessee for defined purposes, duration, and compensation. The agreement defines responsibilities for operation, maintenance, insurance, damage allocation, termination, and return condition. It can include attachments such as schedules, insurance certificates, voyage or route details, and payment terms. Parties often use charter agreements for short-term rentals, time- or voyage-charter arrangements, or project-based equipment deployments.

Why a Clear Charter Agreement Reduces Risk

A well-drafted Charter Agreement clarifies responsibilities, limits exposure to loss or liability, and documents commercial terms and insurance requirements. Clear allocation of costs and return conditions prevents disputes and supports enforceability under ESIGN and UETA where executed electronically.

Who Typically Prepares and Signs a Charter Agreement

Different organizations need Charter Agreements for short-term asset use, project deployments, or commercial transport; the sections below summarize common users.

Commercial operators and lessors — asset owners who lease vessels, aircraft, or equipment for income and require insurance and maintenance clauses.
Charterers and project managers — companies hiring assets for operations, construction sites, or logistics with strict return and liability conditions.
Legal and compliance teams — counsel and contracts teams that ensure regulatory, tax, and insurance language is present and enforceable.

Roles vary by industry; ensure the person completing the form has authority to bind the party named in the agreement.

Primary Signatory Roles

Owner / Lessor

Company officer or authorized representative who holds title to the asset. Must have authority to lease and provide required insurance certificates and warranties; signing binds the owner to maintenance and availability obligations.

Charterer / Lessee

Named entity or individual contracting for use of the asset; signs to accept payment, indemnity, and return conditions. The signer should be authorized to incur financial obligations and accept risk allocation on behalf of the chartering party.

Core Elements to Include in a Professional Charter Agreement

A robust Charter Agreement groups commercial, operational, and legal provisions so parties can quickly verify obligations. Include a concise header and attach exhibits for detailed schedules or insurance documents.

Parties

Full legal names and entity types for owner and charterer, including registered addresses and contact details for notices and operations.

Asset Description

Precise identification of the asset (make, model, registration, serial number) and any excluded equipment or alterations.

Term and Use

Start and end dates, permitted use, geographic restrictions, and permitted operators or crews.

Payment and Fees

Charter rate, security deposit, invoicing schedule, late fees, and any fuel or usage charge methodology.

Liability and Insurance

Minimum insurance limits, required certificates, indemnity clauses, and responsibility for damage during the charter period.

Return Condition and Termination

Standards for return, damage assessment process, early termination rights, and post-termination obligations.

Required Compliance and Security Notes

Encryption: TLS 1.2/1.3; AES-256 at rest

Audit Trail: Complete timestamps and signer attribution

HIPAA: BAA required for protected health data

ESIGN / UETA: Meets ESIGN and UETA standards

21 CFR Part 11: Supported for regulated records

Certifications: SOC 2 Type II and ISO 27001

Step-by-Step: Completing and Executing a Charter Agreement

Follow these sequential steps to prepare, approve, and record a Charter Agreement efficiently and consistently.

01

Prepare Draft: Populate parties, asset, term, rates, and exhibits.
02

Internal Review: Legal and operations confirm insurance and safety clauses.
03

Signatures: Execute with authorized signers; collect dates and titles.
04

Record and Distribute: Provide final copies to all parties and attach certificates.

Typical Digital Execution Flow

A digital workflow reduces turnaround time and preserves an auditable trail for later disputes or regulatory review.

Upload Document: Import PDF or DOCX of the charter form into the eSignature platform.
Place Fields: Add signature, date, and conditional fields where needed.
Assign Signers: Set signing order and authentication level for each signer.
Complete Audit: Platform captures IP, timestamps, and completion certificate.

Suggested Digital Workflow Settings for Charter Agreements

Configure the eSignature workflow to balance signer convenience with authentication appropriate to the asset’s risk profile.

Field	Configuration
Authentication Level	Email + SMS code for external charterers
Signing Order	Owner first, then charterer, then witness if required
Document Retention	Retain signed copy and audit trail for required period
Conditional Fields	Show insurance upload only if charterer is operating the asset

Platform Capabilities to Support Charter Agreement Workflows

Use a platform that supports strong encryption, audit trails, conditional fields, and the integrations you rely on.

Integrations: Salesforce, NetSuite, Google Workspace and others
File Types: PDF and DOCX with embedded fields
Authentication: Email, SMS, KBA, or advanced methods

Confirm the platform supports HIPAA, ESIGN/UETA, SOC 2, and optional RON or notarization workflows if your jurisdiction requires them.

Common Timelines and Deadlines in Charter Agreements

Charter Agreements frequently contain delivery, payment, and notice timelines; track these closely to avoid default or liquidated damages.

Payment Due Date:

Typically Net 15–Net 30 from invoice date

Security Deposit Return:

Often released within 30 days after return inspection

Insurance Certificate Delivery:

Due before commencement of charter period

Termination Notice:

Commonly 30–90 days depending on charter type

Damage Claim Window:

Claims usually asserted within 14–60 days post-return

Key Milestones from Negotiation to Close

Track these numbered stages to coordinate operations, billing, and compliance checks from draft to handback.

01

Negotiation and Drafting

Finalize terms, insurance, and exhibits with stakeholders.

02

Internal Approvals

Obtain sign-off from legal, operations, and finance teams.

03

Execution

Collect signatures, dates, and required attachments.

04

Commencement and Handover

Deliver asset and confirm condition and documents.

Common Preparation Errors to Avoid

Using ambiguous return condition language that creates disagreement over acceptable wear or damage.
Omitting insurance certificate requirements or minimum limits, which can shift uninsured exposure between parties.
Failing to confirm signer authority, resulting in unsigned or unratified contracts that may be unenforceable.
Neglecting to attach exhibits (schedules, manifests, operational limits) that are referenced by the body of the agreement.

Potential Penalties and Risks from Incorrect Agreements

Contract Voidance: Risk of unenforceability

Damage Liability: Uninsured repair costs

Regulatory Fines: Noncompliance with transportation rules

Tax Treatment: Misclassified lease vs service income

Insurance Lapse: Coverage denial for claims

Late-File Penalties: Statutory filing fines may apply

eSignature Vendor Comparison for Charter Agreement Execution

Compare common platform criteria to choose an eSignature provider for Charter Agreements. Prices shown reflect typical starting plans; confirm vendor pages for plan specifics and trial details.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples of Digital Agreement Use

These customer snippets show how digital document workflows support contract execution across industries.

Martin Properties

Tim Martin used online signing to process remote leases and charters efficiently

The platform allowed mobile and offline completion
"I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Fertility Centers of Illinois

John Butler emphasized responsive support and API utility

Integration eased operational workflows
"The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company."

Frequently Asked Questions and Troubleshooting

Answers to common questions about electronic execution, notarization, corrections, and recordkeeping for Charter Agreements.

Need help? Contact support

Can a Charter Agreement be signed electronically?
Yes. Under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, electronic signatures are legally valid if intent, consent, attribution, and retention are met. Certain narrow exceptions may still require wet signatures.
When is notarization still required?
Notarization depends on state law and the agreement’s content; if a state or third party (e.g., title company) requires notarization or a notary acknowledgement, obtain a notary or use RON where permitted.
How do I correct a mistake after signing?
If an error is found, execute an amendment or correction document signed by all parties. Avoid markup changes on the signed original; record the amendment and attach it to the executed file.
What authentication level should I use?
Use email + SMS code for most commercial charters; increase to KBA or government ID verification for high-value assets or regulated transport to reduce repudiation risk.
How do I revoke or cancel a Charter Agreement?
Follow the termination provisions in the agreement; if revocation is by mutual consent, document it in a signed termination or release. For unilateral cancellations, confirm notice and cure provisions before action.
How should I store signed agreements?
Retain signed copies and the audit trail in a secure system with TLS and AES-256 encryption; maintain access logs and backup copies in accordance with retention policies.

Explore Templates

Meeting Minutes Form California State Board of Equalization Meeting Minutes JHSC Meeting Minutes Recording Form Oxford House Chapter Meeting Minutes Team Meeting Minutes URAC Quality Management Committee Meeting Minutes

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now