What happens if the captain signs the charter party without permission?

When the captain signs a charter party without permission, the contract remains valid even though the captain may have acted outside of their authority. This validity stems from the principle of apparent authority, where the actions and roles of individuals in a business entity can sometimes bind the company, despite any internal restrictions on authority. Since the charter party can be seen as an act within the customary duties of a captain, it is typically upheld.

However, while the contract holds validity, it also opens the door for the shipowner to seek damages. This is because the captain’s unauthorized action can still result in potential breaches of fiduciary duty or other repercussions that may not align with the shipowner's interests. Thus, while the charter party is enforceable against the parties involved, the shipowner may opt to pursue claims for any financial losses or damages incurred due to the captain's unauthorized signing, hence the validity of the contract along with the right of the shipowner to sue for damages.