A charter is a formal document, typically issued by a government or sovereign authority, that grants rights, outlines duties, and establishes the existence of a corporation or organization. It can also refer to the act of hiring a vehicle, such as a bus, plane, or boat, usually for exclusive use.
Charter in Law
Definition and Purpose
In the legal context, a charter is a foundational document issued by a governing body that legally establishes a corporation, city, or other entity. It details the rights and privileges granted to the entity, as well as its obligations and governance structure.
Example elements of a charter might include:
- Name of the entity
- Purpose of the entity
- Instructions for governance (e.g., board of directors)
- Powers and limitations
- Duration of incorporation
The charter is crucial to the functioning and legitimacy of entities ranging from municipal governments to private corporations.
Historical Context
Charters have a long history, dating back to medieval times when monarchs used to issue charters to towns, granting them certain freedoms and privileges. One of the most famous historical charters is the Magna Carta of 1215, which outlined specific liberties and attempted to limit the power of the king.
Types of Charters
- Corporate Charter: Establishes a corporation and outlines its structure and authority.
- Municipal Charter: Used by cities or towns to establish their government structure and local regulations.
- Educational Charter: Issued to establish schools or universities with specific educational goals and operational guidelines.
Charter in Transportation
Definition and Purpose
In the transportation industry, to charter a vehicle means to hire it for exclusive use, typically for a specific period or journey. Charters in this context are common for buses, airplanes, ships, and yachts.
Example applications include:
- Corporate events or outings
- Tourism groups
- Private travel arrangements
Typical Considerations
Key considerations when chartering a vehicle include the duration of the hire, the capacity and amenities of the vehicle, and the overall cost. Contracts or agreements are usually drawn up to detail these elements and ensure clarity between the provider and the customer.
Comparisons and Related Terms
- Articles of Incorporation: Legal document filed with a governing body to create a corporation, similar to a charter but typically more focused on procedural requirements.
- Certificate of Incorporation: Another foundational document indicating that a corporation has been legally established, often interchangeable with articles of incorporation.
FAQs
What is the difference between a charter and articles of incorporation?
Can an individual charter a bus for personal use?
Are all cities governed by charters?
References
- Black’s Law Dictionary. (2020). St. Paul, MN: West Publishing Co.
- “The History of Charters,” Encyclopedia Britannica.
- “Corporate Governance and Charters,” Harvard Law Review.
- Federal Aviation Administration (FAA) guidelines on charter flights.
Summary
A charter serves as both a crucial legal document for establishing corporations or entities and a practical term for hiring transportation. Understanding its specific applications and historical context enhances comprehension of its relevance in modern governance and commerce.
