Legal Definitions - charter

A charter is the highest law of an entity. It can refer to:

• The articles of incorporation in corporate law
• The instrument by which a municipality is incorporated in public law
• A government act that establishes a publicly funded business or undertaking in legislative law

For example, a city charter outlines the highest laws and organizational structure of a municipality.

In popular usage, a charter can also refer to the lease of a large or expensive vehicle for transportation, such as a bus, airplane, or ship. When someone signs a lease for such a vehicle, they are said to have chartered it. The vehicle used under this agreement is also said to be chartered.

For instance, a group of tourists may charter a bus to take them on a sightseeing tour.