Payment of Charter Transportation Charges Denied because Vessel Was Unseaworthy

An advance decision was requested on the propriety of paying transportation charges for a charter trip which was terminated prior to destination for health and safety reasons. Payment may not be made since: (1) a chartered vessel is bound to be seaworthy, and lack of a radio and navigational equipment made the vessel used unseaworthy; (2) the party chartering a vessel found to be unseaworthy may treat the contract as discharged even after it has been partially performed; (3) the oral contract was unenforceable; and (4) since the government did not receive a benefit, payment may not be made on a quantum meruit or quantum valebat basis.