Subjects
Meaning
Subjects are conditions attached to an otherwise agreed fixture, such as charterer's approval or vetting, that must be lifted before it is binding.
Also written as Subs, On subs, Subject to
Subjects explained
Typical tanker subjects are “sub charterers' management approval”, “sub vetting”, “sub receivers' approval” and “sub stem” (the cargo being confirmed). Each has a deadline, and the fixture is only clean once all of them are lifted.
Under English law, a fixture “on subjects” may not be a binding contract at all, so either side may still walk away until the subjects are lifted.
Watch out for
Some subjects are pre-conditions to the contract; others are conditions of performance. The difference decides whether a party can walk away, so wording matters.
Related terms
Lifting subjects
Lifting subjects means confirming that the conditions attached to a fixture are satisfied, turning it into a clean, binding fixture.
Fixture
A fixture is a concluded charter: the ship has been “fixed” once owner and charterer have agreed all main terms and lifted any subjects.
Failed fixture
A failed fixture is one that collapses before subjects are lifted, for example because vetting or the charterer's management does not approve.
Vetting
Vetting is an oil company's or charterer's risk assessment of a tanker, using inspection reports and history, before agreeing to charter it or accept it at a terminal.