Balance of contract

Balance of contract is the remaining unperformed part of a time charter, contract of affreightment, or shipbuilding contract: the period, the cargo quantity, or the number of voyages still owed after partial performance. Brokers and lawyers use it to size a claim or a settlement. On a defaulted time charter, owners claim damages on the balance of the charter period, the future hire less mitigation. On a COA, the balance is the unlifted minimum cargo quantity over the remaining term. The figure drives loss-of-bargain damages and any early-termination negotiation.