Legal Aspects of the Ship Sale and Purchase

SPECIFIC AREAS COVERED

• Evolution of SALEFORM: From 1987 to 2012 and a comparative analysis with SHIPSALE 22
• Introduction to the latest form by BIMCO, SHIPSALE 22
• Legal definition and implications of the Memorandum of Agreement (MOA)
• Physical condition of the vessel; sale by description, inspections regime
• Determining the sale price: Evaluating market value, spares, exclusions, bunkers, taxes, fees, and expenses
• Sellers’ obligation to deliver the vessel free from encumbrances.
• Examination of the choices of governing law and arbitration
• Overview and analysis of dispute resolution options, along with their respective pros and cons.
• Addressing scenarios of non-performance: Force Majeure, total loss, buyer’s, and seller’s breaches.
• Understanding the significance of the Entire Agreement clause
• Payment considerations: Including lodging the Deposit, Payment of the Purchase Price, Payment for bunkers, greases, and oils.
• Pre-delivery timetable; Initial vessel inspection, Buyers’ on-board representatives, Notices, vessel location and NOR, Diver’s Inspection / Drydocking, Process for measuring bunkers and identifying inventory.
• Delivery process: Including the Financial closing meeting and documentary requirements.
• Post-delivery considerations; Change of name / funnel markings, Post-delivery documentary obligations, Seller’s warranties, Latent defects
• Real-life case studies exemplifying legal principles in action.
• Interactive Q&A session.

SEMINAR OBJECTIVES

• Explore the legal framework governing ship sale and purchase.
• Examine key mechanisms and processes involved in the sale and purchase of vessels.
• Examine the related contracts and clauses; MOA – legally defined.
• Get an update on the BIMCO’s new form SHIPSALE 22
• Understand the rights and obligations of buyers and sellers.
• Analyze common challenges and dispute resolution options.
• Provide practical insights and strategies for successful transactions.