Sale And Purchase Vessel Agreement
Two essential conditions of each sales contract are the property for sale (i.e. the ship) and its price. Both must be clearly stated. The MOA sets out a number of procedures necessary for the final conclusion of the transaction. Certain documents are required, including the closing event, the minutes of the meeting of the directors and shareholders of the seller, a certificate of good reputation, a power of attorney, the contract of sale, the class certificate, any consents or licenses required by the government authority, an attestation from the Registrar of the Ship Registry authorizing the sale. After all the details have been agreed by numerous communications, a formal contract for the sale of the vessel – Memorandum of Understanding (MOA) – is established. There are a number of standard form contracts for the MOA, such as the Norwegian Sales Form (NSF). However, there are periods when the treaty may be subject to certain conditions, for example.B. obtaining authorizations from directors or shareholders or licenses. After drawing the sales form, 10 percent of the acomptère is paid by the buyer and the buyer can appoint his own expert to inspect the vessel.
A transaction of sale and purchase of ships culminates in its “conclusion”. Here, buyers and sellers (usually on the same day) exchange documents, make payment, and physically deliver and transfer the ship. It requires careful coordination between the different parties working together to ensure that the sale is successfully concluded. Each party has its role to play. Some important participants in this day may be: sellers and buyers (or agents), lawyers, bankers (both financial and for payments), representatives of the flag State, crew (old and new if replaced), brokers, class representatives, insurers, with others possibly needed, usually not all in the same place or even in the same time zone. The purpose of this article is to provide a brief overview of the stages of the sale and purchase of ships in international practice. The sale and purchase of ships is one of the most complex procedures in the shipping industry, much more complex than a new contract to build a ship, for example. The S&P contract includes different types of expertise as well as strong negotiation capabilities. In addition, the buyer should check the history and all court decisions in order to reduce future losses of the purchased vessel, taking into account the legal effect of the shipping instructions on the used vessel.
When it comes to the complex issues of this market, a professional broker therefore plays an important role in the transaction. The parties are free to determine the content of the contract and to draw up the terms and conditions. However, in international practice, model contracts are used for the purchase and sale of ships. The most widely used forms of standard contracts on the market are the Norwegian Sales Form, the Japanese Sale Form and the Singapore Ship Sale Form. When it comes to the sale and purchase of yachts, the most common standard form is the Memorandum of Understanding of the Mediterranean Yacht Brokers Association. The ship shall be delivered in the condition in which it was at the time of the inspection. Not only the remaining bunkers, but also the remaining oils and greases in the storage tanks and other stocks in the warehouses (remaining on board or “ROB”) are calculated and the amount is paid by the buyer in accordance with the NSF. A report of delivery and receipt confirming the date and time of delivery is signed and exchanged between the buyer and the seller. Selling and buying a ship poses many challenges, both legal and practical….