What happens if freight is paid before the charter party is signed?

When freight is paid before a charter party is signed, the bill of lading assumes a central role in the transaction. This is because the payment of freight can establish certain rights and claims under the law, even in the absence of a formal charter party agreement. The bill of lading serves as a receipt for the goods, evidence of the contract of carriage, and can outline the obligations and rights of the parties involved, including how the freight payment impacts those obligations.

In maritime commerce, if freight is paid, it creates a strong presumption that a contract exists, and the bill of lading often represents that contract in practice. It encapsulates the agreement between the parties regarding the transportation of goods and can dictate what happens next, including the terms of shipment and delivery.

Options that suggest the contract becomes void, the ship cannot leave port, or extra charges apply do not appropriately reflect the legal implications of paying freight prior to the charter party being signed. Those scenarios do not align with maritime law principles regarding the validity and enforcement of contracts once payments have been made and services rendered under the bill of lading.