Memorandum Of Agreement For Sale Of Vessel

Two essential conditions of any sales contract are the building that is sold (i.e. the ship) and its price. Both should be made clear. The other measure is the documentary delivery of the ship by signing a delivery and receipt protocol (“PoDA”). The PoDA records the exact time of delivery and the place of delivery. It is generally considered an indulgence of the exact date and the risk card from the seller to the buyer. As a general rule, it is signed by the authorized representatives of the shoreline meeting, once the payment of the purchase price is confirmed. The identity of the buyer and seller is not always immediately visible. In practice, the buyer in question is often a special purpose vehicle (“SPV”).

In addition, a mechanism for the renewal of the MoA is often sought, often by buyers who have not yet put in place APV for the ownership of the vessel at the time of the MoA signing. The buyer should also confirm the identity of this seller, which should be the same entity that is registered as the official owner of the vessel. The Al Tamimi-Company team regularly assists clients on legal issues related to the purchase and sale of ships. Documentary exchanges generally involve two types of documents. First, the delivery of the ship`s documents by the seller to the buyer. Second, the delivery of all other documents defined in the MoA. The parties are cautioned to ensure that these negotiations are not likely to create legally binding agreements inadvertently. This can (and a) can be done by accidentally extending an offer that can be accepted through a broker (as a presumed agent) or by accepting such an offer. These risks can be easily avoided by clearly confirming that all moA execution conditions are being met. B the guarantee of matches or summaries. The inclusion in exchanges of formulations such as the “treaty” has become a good practice in this regard.

In a typical transaction, the real estate agent will help the buyer find a ship and hire a boat knife to perform the preliminary inspection. A buyer`s indicator verifies the vessel and verifies that the vessel meets the buyer`s criteria and assesses the market value of the vessel for negotiation purposes. The surveyor is not only a physical inspection of the vessel, but also the inspection of technical documents and certificates issued by the flag state company and the ship`s classification company. “Classification societies” are independent organizations and maintain technical standards for ship planning, construction and operation and employ surveyors to certify compliance with these standards. See Goldrein, Hannaford and Turner, Ship Sale and Purchase, 41-42 (Routledge 6th ed. 2012). Of course, this is a simplified breakdown of the process and it is generally advisable to keep a lawyer.