i-law

Ship Building Sale and Finance


Page 483

Index

Index

  • alterations to vessel, standard form contracts 1216
  • approval of plans, Newbuildcon 2007 3031
  • arbitration: economic causes of disputes 4546;
    • London, in 4;
    • Nipponsale 1999 102
  • arrest and sale:
    • cargo discharge costs, mortgagee’s liability 160162;
    • cargo interests 156;
    • circumstances leading to 149151;
    • common law jurisdictions, advantages of 151152;
    • cost of a judical sale 162164;
    • court-approved direct sales 153156;
    • forum shopping 151152;
    • sale pendente lite 152153;
    • tortious liability of mortgagee 156160
  • ‘as is’:
    • BIMCO Saleform 2012 133;
    • case law as to meaning 126129;
    • condition at delivery 235238;
    • consequences of Union Power decision 133134;
    • interpretation under Sale of Goods Act 1979 115121;
    • introduction to 112114;
    • ordinary English meaning 124126;
    • question as to meaning of 114, 124;
    • ship sales 138;
    • substantial meaning 129133;
    • Union Power decision 121124
  • assignment:
    • assignees distinguished 178179;
    • mortgagees’ interest insurance see mortgagees’ interest insurance;
    • Newbuildcon 2007 41;
    • refund guarantees 7879;
    • standard form contracts 2122
  • AWES Standard Shipbuilding Contract 1978:
    • comparison with other forms 822;
    • introduction of 3;
    • use of 4
  • Baltic and International Maritime Council (BIMCO) 101
  • BARECON 2001:
    • ‘as is’ condition at delivery 235238;
    • balance of rights and obligations 238240;
    • compulsory insurance 197198;
    • delivery of vessel 215217;
    • description of vessel 217220;
    • hire/purchase agreement 234235;
    • indemnity 203204;
    • insolvency (UK law 209210;
    • US law 210211);
    • insurance 201203;
    • introduction to 188189, 212215;
    • liability for non-delivery 220226;
    • maritime liens, prevention of 204;
    • newbuild vessels 212215;
    • owners’ liabilities (in personam claims 189191;
    • international conventions 191193;
    • statutory 193194)
    • US law 198201);
    • owners remedies (insolvency (UK law)) 209210;
    • insolvency (US law) 210211;
    • provisions for 204;
    • repossession of vessel 204;
    • termination of charter 205209);
    • in personam claims 189191;
    • privity of contract 199, 200, 220, 229, 232, 239;
    • in rem actions 194197;
    • repairs (charterers’ protection under guarantee clause 232234;
    • overview of provisions 226229;
    • owners’ obligations as to 229231);
    • repossession of vessel 204;
    • termination of charter 205209;
    • US law (common law liability 198199;
    • insolvency 210211;
    • statutory liabilities 199201)
  • BIMCO BARECON 2001 see BARECON 2001
  • BIMCO Newbuildcon 2007 see Newbuildcon 2007
  • BIMCO Saleform 2012, meaning of ‘as is’ 133
  • breach of contract see remedies
  • builder’s guarantees, Newbuildcon 2007 36

  • Page 484

    builders’ responsibilities, Newbuildcon 2007 3637
  • builders’ risks cover:
    • ICBR 1988 see ICBR 1988;
    • introduction to 8083;
    • Mar CAR 2007 see Mar CAR 2007
  • ‘buyer may maintain an action’ for damages 5255
  • buyer’s attendance at tests, trials and inspections, Newbuildcon 2007 32
  • buyer’s representatives, Newbuildcon 2007 3132
  • buyers’ responsibilities, Newbuildcon 2007 3637
  • buyer’s supplies, Newbuildcon 2007 31
  • cargo, arrest and sale see arrest and sale
  • changes to vessel, Newbuildcon 2007 3233
  • choice of law see governing law
  • classification of vessel, Newbuildcon 2007 28
  • classification societies, sale contracts and 105106
  • CMAC Standard Newbuilding Contract 2012:
    • comparison with other forms 822;
    • introduction of 3;
    • use of 4
  • co-assureds see mortgagees’ interest insurance
  • coatings, Newbuildcon 2007 28
  • compulsory insurance, bareboat charter 197198
  • conflict of laws see governing law
  • construction law see prevention principle
  • construction quality, standard form contracts 46
  • constructive total loss, ICBR 1988 8889
  • contract price adjustment, Newbuildcon 2007 29
  • contractors as co-assureds 8386
  • contracts see ship sale contracts; shipbuilding contracts
  • counterclaim, exclusion of 77
  • counterparty, ship sales and 137138
  • currency, choice of 28, 145
  • damage to vessel, meaning of physical damage 9094
  • damages, liquidated damages 29
  • defects:
    • at delivery 3334;
    • latent defect, damage or loss caused by 8687;
    • liability for 2021;
    • practical aspects 138
  • defences, availability under refund guarantees 73
  • delays:
    • avoidance of 143;
    • Newbuildcon 2007 35
  • delivery:
    • BARECON 2001 215217;
    • defects 3334;
    • documents see ship sales;
    • liability for non-delivery 220226;
    • Newbuildcon 2007 3435;
    • notices 3334;
    • place of 143144;
    • refusal to accept 46;
    • right to decline 1920
  • demise charters see BARECON 2001
  • deposits:
    • different treatments in sale contracts 106110;
    • practical aspects 141142
  • derivatives:
    • classification of shipping derivatives 262263;
    • EU Directive on markets in financial instruments 261;
    • introduction to 259260;
    • legal nature of shipping derivatives 261262;
    • risks (choice of law 265266;
    • civil law analysis of 263;
    • limitation of third party risk 264265)
    • protections from 263264)
  • description of vessel:
    • BARECON 2001 217220;
    • Newbuildcon 2007 27
  • design quality, standard form contracts 46
  • dispute resolution:
    • Newbuildcon 2007 3940;
    • see also arbitration
  • drafting of refund guarantees 7679
  • due diligence provision, Mar CAR 2007 9496
  • economic causes of disputes 4546
  • effective date:
    • Newbuildcon 2007 41;
    • refund guarantees 78
  • enforcement see remedies
  • English law as governing law 46
  • ‘entire agreement’ clause, Newbuildcon 2007 41
  • exclusions from liabilities, Newbuildcon 2007 3637
  • expiry date, refund guarantees 78
  • financial guarantees, Newbuildcon 2007 42
  • financial provisions, Newbuildcon 2007 28
  • financing:
    • assignment 2122;
    • finance leases 188189;
    • hypothecs 2223;
    • mortgages 2223;
    • sanctions see sanctions

  • Page 485

    flags of convenience see open flags
  • force majeure, Newbuildcon 2007 35
  • forum, choice of 79
  • forum shopping 151152
  • goods, vessel as 47
  • governing law:
    • derivatives 265266;
    • English law as 46;
    • Newbuildcon 2007 39;
    • refund guarantees 79;
    • standard form contracts 4
  • guarantees see payment guarantees; refund guarantees
  • hypothecs, standard form contracts 2223
  • ICBR 1988:
    • constructive total loss 8889;
    • contractors as co-assureds 8386;
    • latent defect, damage or loss caused by 8687;
    • Mar CAR 2007 compared with 8283, 97;
    • notices, provisions for 8990;
    • origins of 81;
    • physical loss and damage, meaning of 90;
    • revision of 82, 97;
    • scope of 8182;
    • subcontractors as co-assureds 8386;
    • tsunami, losses caused by 8788
  • in personam claims, bareboat charter 189191
  • in rem actions, bareboat charter 194197
  • indemnity, bareboat charter 203204
  • insolvency:
    • bareboat charter (UK law 209210;
    • US law 210211)
    • EU Insolvency Regulation 167169;
    • international procedures 164167
  • inspections:
    • buyer’s attendance at 32;
    • practical aspects 138
  • instalments, Newbuildcon 2007 29
  • Institute Clauses for Builders’ Risks (ICBR) see ICBR 1988
  • insurance:
    • bareboat charter 197198, 201203;
    • compulsory insurance, bareboat charter 197198;
    • joint names insurance, subrogation 184185;
    • mortgagees’ interest see mortgagees’ interest insurance;
    • Newbuildcon 2007 37;
    • standard form contracts 67
  • intellectual property, Newbuildcon 2007
  • international insolvency law 164167
  • interpretation of refund guarantees 7576
  • ‘irrevocable and unconditional’, refund guarantees 77
  • Japan Shipping Exchange see Nipponsale 1999
  • joint names insurance, subrogation 184185
  • latent defect, damage or loss caused by 8687
  • Law of Property Act 1925, assignment under 176
  • lease finance 188189
  • legal provisions, Newbuildcon 2007 35
  • liability:
    • arrest and sale 156162;
    • for defects 2021;
    • exclusions from 3637;
    • non-delivery of vessel 220226;
    • refund guarantees 7273
  • liquidated damages, Newbuildcon 2007 29
  • London Marine Construction All Risks Wording (Mar CAR) see Mar CAR 2007
  • London Maritime Arbitration Association (LMAA) 4
  • loss of vessel:
    • constructive total loss 8889;
    • physical loss and damage, meaning of 9094
  • loss payees see mortgagees’ interest insurance
  • Mar CAR 2007:
    • changes introduced by 83;
    • constructive total loss 8889;
    • contents of 82;
    • contractors as coassureds 8386;
    • due diligence provision 9496;
    • ICBR 1988 compared with 8283, 97;
    • introduction of 82, 97;
    • latent defect, damage or loss caused by 87;
    • limitations of 8283;
    • notices, provisions for 90;
    • physical loss and damage, meaning of 9094;
    • problem areas 90;
    • right to recovery, protection of 9697;
    • subcontractors as co-assureds 8386;
    • tsunami, losses caused by 88
  • Marine Insurance Act 1906, assignment under 174176
  • maritime liens: practical aspects 139;
    • prevention 204
  • memorandum of agreement (MOA) 136, 137, 138, 140141, 142, 143, 144, 145
  • modifications to vessel, Newbuildcon 2007 3233

  • Page 486

    mortgagees’ interest insurance:
    • assignment (assignees distinguished 178179;
    • enforcement power following 174;
    • equitable 176177;
    • Law of Property Act 1925 176;
    • Marine Insurance Act 1906 174176)
    • co-assureds (distinguished 178179;
    • mortgagee as 177179;
    • subrogation 183184)
    • importance of 187;
    • insurable interest, valuation of 171172;
    • introduction to 170171;
    • loss payees distinguished 178179;
    • provisions as to 172173;
    • other policies protecting mortgagees 181182;
    • participation in shipowner’s policy 172;
    • policies 179180;
    • subrogation (doctrine of 182183;
    • exercise of rights 183184;
    • names insurance 184185;
    • mortgagees’ interest insurance 185186)
  • mortgages:
    • seller’s mortgage, practical aspects 144;
    • standard form contracts 2223
  • Newbuildcon 2007:
    • advantages of 4243;
    • annexes 42;
    • approval of plans 3031;
    • assignment 41;
    • bespoke contracts, use for 4344;
    • boxes 2627;
    • builders’ and buyers’ responsibilities 3637;
    • builder’s guarantees 36;
    • buyer’s attendance at tests, trials and inspections 32;
    • buyer’s representatives 3132;
    • buyer’s supplies 31;
    • changes to vessel 3233;
    • choice of law 39;
    • comparison with other forms 822;
    • contract price adjustment 29;
    • currency, choice of 28;
    • delivery 3435;
    • delivery defects 3334;
    • dispute resolution 3940;
    • effective date 41;
    • ‘entire agreement’ clause 41;
    • exclusions from liabilities 3637;
    • finance (section 2) 28;
    • financial guarantees 42;
    • force majeure 35;
    • general layout 2526;
    • instalments 29;
    • insurance 37;
    • intellectual property 39;
    • introduction of 3;
    • introduction to 2425;
    • legal provisions (section 5) 35;
    • liquidated damages 29;
    • modifications to vessel 3233;
    • notice of delivery 3334;
    • notices 41;
    • options 41;
    • permissible delays 35;
    • popularity of 42;
    • production (section 5) 30;
    • refund guarantees 30;
    • sea trials 3334;
    • set-off 29;
    • subcontracting 30;
    • sundry items (section 6) 41;
    • suspension and termination 3739;
    • terms and conditions 2742;
    • text of Appendix 1;
    • use of 4;
    • vessel (changes and modifications 3233;
    • classification 28;
    • delivery 3435;
    • delivery defects 3334;
    • description 27;
    • general obligations 27;
    • notice of delivery 3334;
    • protective coatings 28;
    • rules and regulations, compliance with 28;
    • sea trials 3334;
    • section 1 28;
    • source of origin 28)
  • Nipponsale 1999:
    • applicability to pleasure craft 102103;
    • arbitration 102;
    • content and form of 103;
    • deposits, treatment of 107110;
    • introduction of 102
  • non-disclosure of ‘unusual’ facts 7374
  • Norwegian Saleform:
    • applicability to pleasure craft 102103;
    • content and form of 103;
    • deposits, treatment of 107110;
    • revision of 101102;
    • success of 101;
    • use of 102
  • notice of delivery, Newbuildcon 2007 3334
  • notice of readiness (NOR), practical aspects 144
  • notices:
    • ICBR 1988 8990;
    • Newbuildcon 2007 41;
    • refund guarantees 77
  • open flags (flags of convenience), sale contracts and 105
  • options, Newbuildcon 2007 41
  • origin of vessel, Newbuildcon 2007 28
  • payment see ship sales
  • payment refund guarantees see refund guarantees
  • pendente lite sale 152153
  • permissible delays, Newbuildcon 2007 35
  • physical loss and damage, meaning of 9094
  • place of delivery, practical aspects 143144
  • pleasure craft, sale contracts 102103
  • prevention principle:
    • Adyard Abu Dhabi v SD Marine Services 6365;
    • critique of 5657, 6668;
    • development of 6063;
    • introduction to 5657
  • primary obligation see refund guarantees
  • privity of contract 199, 200, 220, 229, 232, 239

  • Page 487

    protective coatings, Newbuildcon 2007 28
  • protective language, refund guarantees 77
  • quality of design and construction 46
  • recovery by third parties, protection of right 9697
  • refund guarantees:
    • assignment 7879;
    • counterclaim, exclusion of 77;
    • drafting of key provisions 7679;
    • effective date 78;
    • expiry date 78;
    • forum, choice of 79;
    • governing law 79;
    • interpretation of 7576;
    • introduction to 6365;
    • ‘irrevocable and unconditional’ 77;
    • liability 7273;
    • Newbuildcon 2007 30;
    • notices, provisions for 77;
    • primary or secondary obligation (arisal of 7273;
    • availability of defences 73;
    • comparison between 73;
    • events discharging guarantee 74;
    • non-disclosure of ‘unusual’ facts 7374;
    • protective language 77;
    • Statute of Frauds 1677 7475)
    • problem areas 6970;
    • representations 79;
    • scope of 7071;
    • set-off, exclusion of 77;
    • standard form contracts 710;
    • warranties 79
  • registered owner, identification of 139
  • remedies:
    • arrest and sale see arrest and sale;
    • ‘buyer may maintain an action’ for damages 5255;
    • contractual 151;
    • economic causes of disputes 4546;
    • enforcement in depressed market 4652;
    • enforcement in ‘overheated’ market 5255;
    • EU Insolvency Regulation 167169;
    • inadequacy of 46;
    • international insolvency procedures 164167;
    • introduction to 4546;
    • reform of 5152, 55;
    • Sale of Goods Act 1979 4647, 52;
    • ‘seller may maintain an action’ for price 4749;
    • specific performance, order for 4950
  • repairs see BARECON 2001
  • repossession of vessel, bareboat charter 204
  • representations, refund guarantees 79
  • right to recovery, protection of 9697
  • risk:
    • cover see ICBR 1988;
    • Mar CAR 2007;
    • derivatives see derivatives;
    • third parties 264265
  • rules and regulations, compliance with 28
  • SAJ Standard Shipbuilding Contract 1974:
    • comparison with other forms 822;
    • introduction of 3;
    • use of 34
  • sale contracts:
    • ‘as is’, meaning of see ‘as is’;
    • classification societies 105106;
    • differences between (case study) 106110;
    • in English law 112114;
    • forms see Nipponsale 1999; Norwegian Saleform; Singapore Ship Sale Form (SSF 2011);
    • introduction to 101103;
    • open flags (flags of convenience) 105;
    • practical aspects see ship sales;
    • single ship owning companies 104;
    • uniform approach to 103106, 110111;
    • use of 112, 135;
    • see also Sale of Goods Act 1979
  • Sale of Goods Act 1979:
    • applicability to ship sales 115;
    • ‘as is’, meaning of see ‘as is’;
    • exclusion of statutory conditions 113114;
    • practical aspects 138;
    • remedies 4647, 52;
    • satisfactory quality (burden of proof as to exclusion 117118;
    • customary meaning of 118121;
    • exclusion of term 116117;
    • implied term of 115116;
    • Union Power decision 121124)
  • Saleform 2012, meaning of ‘as is’ 133
  • sanctions:
    • background to 245;
    • introduction to 241245;
    • Iranian banking cases 251253;
    • Iranian insurance cases 246251;
    • judicial approach to 256258;
    • responses to 253256
  • satisfactory quality see Sale of Goods Act 1979
  • sea trials see tests and trials
  • secondary obligation see refund guarantees
  • security interests, creation of 21
  • seller’s mortgage, practical aspects 144145
  • set-off:
    • exclusion of 77;
    • Newbuildcon 2007 29
  • ship see vessel
  • ship sales:
    • arrest and sale see arrest and sale;
    • ‘as is’ basis 138;
    • avoidance of delays 143;
    • counterparty 137138;
    • in current market 135136;
    • defects 138;
    • delivery documents (local formalities 142143;
    • scope of 142;
    • for completion 143);
    • deposits, treatment of 141142;
    • inspections 138;
    • maritime liens 139;
    • memorandum of agreement (MOA) 136, 137, 138, 140141, 142, 143, 144, 145;

    • Page 488

      notice of readiness (NOR) 144;
    • payment (choice of currency 145;
    • ‘old-fashioned’ approach 145146;
    • pre-position funds 146;
    • problem areas 145);
    • place of delivery 143144;
    • pre-contractual negotiations 136137;
    • registered owner 139;
    • resolution of issues 139140;
    • Sale of Goods Act 1979 138;
    • seller’s mortgage 144145;
    • special purpose vehicle (SPV) 137;
    • vessel 138139
  • shipbuilding contracts:
    • breach of see remedies;
    • economic causes of disputes 4546;
    • English law as governing law 46;
    • introduction to 34;
    • modern categorisation of 5860;
    • non-marine construction contracts compared with 58;
    • standard forms see Newbuildcon 2007; standard form contracts;
    • traditional categorisation of 57
  • shipping derivatives see derivatives
  • Singapore Ship Sale Form (SSF2011):
    • applicability to pleasure craft 102103;
    • content and form of 103;
    • deposits, treatment of 107110;
    • introduction of 102;
    • use of 102
  • single ship owning companies, sale contracts and 104
  • source of origin of vessel, Newbuildcon 2007 28
  • special purpose vehicle (SPV), ship sales and 137
  • specific performance, order for 4950
  • standard form contracts:
    • alterations 1216;
    • assignment 2122;
    • governing law 4;
    • hypothecs 2223;
    • insurance 67;
    • liability for defects 2021;
    • list of 3;
    • mortgages 2223;
    • payment guarantees 710;
    • quality of design and construction 46;
    • refund guarantees 710;
    • right to decline delivery 1920;
    • sale contracts see sale contracts;
    • subcontracting 1012;
    • supervision 12;
    • termination 1619;
    • variations between 4, 1023
  • Standard Form Norwegian Shipbuilding Contract 2000 (NSC):
    • comparison with other forms 822;
    • introduction of 3;
    • use of 4
  • Statute of Frauds 1677, refund guarantees 7475
  • subcontractors:
    • as co-assureds 8386;
    • Newbuildcon 2007 30;
    • standard form contracts 1012
  • subrogation see mortgagees’ interest insurance
  • supervision:
    • Newbuildcon 2007 3132;
    • standard form contracts 12
  • suspension of contract see termination
  • termination:
    • bareboat charter 205209;
    • Newbuildcon 2007 3739;
    • standard form contracts 1619
  • tests and trials:
    • buyer’s attendance at 32;
    • sea trials 3334
  • third parties:
    • derivatives risk 264265;
    • right to recovery 9697
  • Tokyo Maritime Arbitration Commission (TOMAC) 102
  • tsunami, losses caused by 8788
  • Union Power case see ‘as is’
  • ‘unusual’ facts, non-disclosure of 7374
  • vessel:
    • as goods 47, 50
    • newbuild 212215;
    • Newbuildcon 2007 see Newbuildcon 2007;
    • sale of see ship sales
  • warranties, refund guarantees 79

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