i-law

Ship Sale and Purchase

Page 391

Index
  • “Accept/except” basis 46
  • Access to ship's communications system
  • buyer's on-board representatives 87
  • Additional clauses
  • back-to-back sales 259–260
  • cumulative rights and remedies 263
  • force majeure 264–266
  • good faith 261
  • guarantees 257–259
  • intellectual property rights 266
  • partial invalidity 262–263
  • postdelivery trading restrictions 267
  • third-party rights 263–264
  • trademarks 266
  • trading and green recycling provisions 267–268
  • variations 261–262
  • waiver 262
  • Additional flagging documents
  • delivery documents 170
  • Advance funding arrangements
  • conditional transfers 158–159
  • “hold to order” mechanism 159–160
  • overview 158
  • Agreement to buy
  • sale and purchase 32–33
  • Agreement to sell
  • sale and purchase 32–33
  • Anti-corruption 7
  • indemnity 221
  • legislation 220
  • provisions 219–221
  • right to claim damages 221–222
  • Anti-money laundering (AML)
  • Shipsale 22, 220
  • Anti-technicality clause
  • deposit 65–67
  • Apostille
  • delivery documents 163–164
  • Arbitration
  • arbitral tribunal 244–245
  • Arbitration Act 1999 244
  • choice of governing law and
  • Nipponsale 1999 242–243
  • Saleform 2011 242
  • Shipsale 22, 242
  • Singapore Ship Sale Form 2011 243
  • commencement of 246
  • expertise of arbitrators 245–247
  • resolving disputes by 241
  • Arbitration Act 1996 244
  • Arbitration proceedings
  • notices 228
  • “As-is” rule
  • condition of vessel at delivery 113–114
  • Back-to-back sales
  • generally 259–260
  • Banking Days 24–25
  • Saleform 2011 177
  • Bank letters
  • payments 160
  • Bareboat registration
  • Shipsale 22, 12–13
  • Bill of sale
  • delivery documents 164–165
  • BIMCO
  • Law And Arbitration Clause 2022 240–252
  • SmartCon 242
  • BIMCO Electronic Signature Clause 2021
  • Shipsale 22, 253–256
  • BIMCO Law And Arbitration Clause 2020
  • arbitral tribunal 244–245
  • Arbitration Act 1999 244
  • arbitration procedure under Shipsale 22, 244
  • choice of governing law and arbitration
  • Nipponsale 1999 242–243
  • Saleform 2011 242
  • Shipsale 22, 242
  • Singapore Ship Sale Form 2011 243
  • construction 243–244
  • expertise of arbitrators 245–247
  • governing law 248–249
  • notices 248
  • resolving disputes
  • by arbitration 241
  • in court 249–250
  • by mediation 250–252
  • small and intermediate claims 247–248
  • Breach
  • of confidentiality
  • no right to terminate 225
  • right to damages 226
  • of warranty 217–218
  • Breach date rule
  • seller s’ termination rights 190
  • Bunkers
  • commercial invoice 169
  • delivery stage 173, 178
  • joint survey 145–146
  • payments 154
  • price calculation 147
  • quantity 146–147
  • timing of payment 148
  • Buyer's obligation
  • inspection 73
  • Buyer's on-board representatives
  • introduction 84
  • Shipsale 22
  • access to ship's communications system 87
  • expense and risk 87
  • familiarisation 88
  • health and safety 86
  • letter of indemnity 85–86
  • no interference 88
  • number of 86–87
  • timing 84–85
  • Buyer's options upon receipt
  • vessel delay 142
  • Buyer's own works
  • dry-dock inspection 107
  • Buyer's rights of attendance
  • dry-dock inspection 103
  • Cancelling date 7
  • buyer's options upon receipt 142
  • consequences of buyer accept 142–143
  • definitions and interpretation 25–26
  • delivery notices 139
  • failure to give NOR 198–199
  • seller restriction 142
  • seller's right to propose 140–141
  • vessel delay 140
  • Carbon emissions
  • additional clauses and provisions 269
  • Carbon Intensity Indicator (CII)
  • additional clauses and provisions 269
  • Certificate of deletion
  • delivery documents 168
  • Certificate of good standing
  • delivery documents 171
  • Certificate or transcript of registry
  • delivery documents 166–167
  • Certification
  • post-delivery obligations 182
  • Change of name and funnel markings
  • Nipponsale 1999 180–181
  • post-delivery obligations 180–181
  • Saleform 2011 180–181
  • SSF 2011 180–181
  • “Charter free”
  • condition of vessel at delivery 123–125
  • Check-digit 10
  • IMO number 10
  • Claims
  • small and intermediate 247–248
  • Classification
  • liability 79–83
  • ship's society records 76–77
  • Classification Society 25, 30, 36
  • post-delivery obligations 183
  • Shipsale 22, 13
  • Class maintained
  • condition of vessel at delivery 113–114
  • Class maintenance certificate
  • delivery documents 167–168
  • Class notation
  • Shipsale 22, 13–14
  • Closing agenda
  • delivery 174–175
  • Commercial invoice
  • delivery documents 169
  • Communications
  • notices and 228
  • Completion
  • delivery
  • participants 176
  • timing 175
  • no notice of readiness before 98–99
  • Conditional transfers
  • advance funding arrangements 158–159
  • Condition of vessel at delivery
  • “as-is” rule 113–114
  • “charter free” 123–125
  • class maintained 113–114
  • disclosure amendment 129
  • distinguishing between 122–123
  • dry-dock 111
  • fair wear and tear 113
  • free from arrest, detention or restraint 128
  • free from charges or encumbrances 127
  • free from debts whatsoever 128
  • free from liens 126–127
  • free from mortgages and other security interests 125
  • free of average damage affecting class 115–116
  • free of cargo 117
  • free of stowaways 117
  • indemnity distinct 131
  • intermediate term 121–122
  • introduction 110
  • no duty to disclose 128–129
  • no duty to report class matters 118–119
  • place/range 110
  • safely afloat 111
  • seller's indemnity 129–131
  • SSF 2011 112
  • statutory implied terms 117–118
  • time of inspection 111–112
  • valid certificates 116–117
  • warranties 120–121, 131
  • Confidentiality
  • breach of
  • no right to terminate 225
  • right to damages 226
  • clause survives termination 226
  • documents and information 224
  • obligations imposed on seller and buyer only 225
  • permitted disclosures 223–224
  • press releases and announcements 226
  • Consequences
  • total loss of ship 214
  • Consequences of buyer accepting new cancelling date
  • vessel delay 142–143
  • Consequences of buyer terminating sale agreement
  • vessel delay 143
  • Constructive total loss (CTL)
  • total loss 213
  • Continuous synopsis record
  • delivery documents 168–169
  • Contract formation 39–41
  • first basic requirement 40
  • second basic requirement 40–41
  • third basic requirement 41
  • Costs
  • incurred 3
  • COVID-19 pandemic 18
  • health and safety 86
  • ship sale transactions 264–265
  • Credit transfers
  • payments 157–158
  • Currency
  • payments 154
  • Currency of claim
  • buyers 196
  • Damage affecting ship class
  • dry-dock inspection 103–104
  • Damages
  • buyer's right to claim 201–202
  • liquidated 194–195
  • measure of 190–192
  • Declaration of class
  • delivery documents 167–168
  • Deduction of bank charges
  • Nipponsale 1999 186
  • Saleform 2011 186
  • Shipsale 22, 186
  • Definitions 23–24
  • Deliverable condition
  • delivery notices 138–139
  • Delivery
  • closing 175
  • closing agenda 174–175
  • completion
  • participants 176
  • timing 175
  • documentary closing
  • electronic 177–178
  • physical meeting 176–177
  • safely afloat 176
  • Notice of Readiness 174
  • physical handover of ship 178–179
  • pre-delivery meeting 175
  • pre-delivery steps 173–174
  • SGA definition 173
  • of ship 26
  • Delivery documents 26–27
  • additional flagging documents 170
  • apostille 163–164
  • bill of sale 164–165
  • buyer’s 171
  • certificate of deletion 168
  • certificate of good standing 171
  • certificate or transcript of registry 166–167
  • class maintenance certificate 167–168
  • commercial invoice 169
  • continuous synopsis record 168–169
  • declaration of class 167–168
  • evidence of corporate authority 165–166
  • exchange of copies, drafts or samples 162
  • freedom to trade and operate 170
  • guarantor(s) 172
  • introduction 161
  • language 162
  • legalisation 163
  • letter to satellite communication provider 169–170
  • meaning 161
  • no grounding letter 170–171
  • notarisation 163
  • power of attorney 166
  • protocol 171–172
  • seller's documents 164
  • technical documents 172
  • Delivery notices
  • cancelling date 139
  • deliverable condition 138–139
  • “intention” only 133–135
  • introduction 132
  • itinerary and seller's “intention” 133
  • overview 135
  • “physically ready for delivery” 135–136
  • satisfaction
  • direct costs for repair work 137
  • dry-dock inspection 137
  • earliest date stated 136
  • place of delivery 137
  • underwater inspection 136
  • when and towhom 137–138
  • Deposit
  • amount of 60
  • anti-technicality clause 65–67
  • failure to pay 68
  • fees charged by 67
  • holder 60–61
  • holding agreement 61–62
  • interest 67
  • nominees 69
  • as part payment 59–60
  • payment in full 65
  • received within three banking days 63–65
  • satisfaction before 62–63
  • as security 59
  • sub-sale 69
  • total loss 68–69
  • Deposit account
  • definitions and interpretation 27
  • Deposit holder
  • Shipsale 22, 15
  • Deposit holding agreement
  • definitions and interpretation 27
  • Disruptive Banking Event 24
  • Shipsale 22, 185
  • “Diver's inspection”
  • second-hand ship sale transactions 90
  • Documentary closing
  • delivery
  • electronic 177–178
  • physical meeting 176–177
  • safely afloat 176
  • Shipsale 22, 17–18
  • Dry-dock inspection
  • buyer negotiate 107–108
  • buyer's own works 107
  • buyer's rights of attendance 103
  • damage affecting ship class 103–104
  • delivery notices 137
  • introduction 101
  • location of 102
  • scope of 102
  • seller obligation 101–102
  • standard of repair 104–105
  • tailshaft survey 106–107
  • who bears cost 105–106
  • Electronic Communications Act 2000 (ECA 2000) 254
  • Electronic documentary closing
  • delivery 177–178
  • Electronic signature
  • definition 254
  • Electronic Communications Act 2000 254
  • execution process 255–256
  • necessity of clause 256
  • validity 254
  • Email notices
  • Shipsale 22, 229
  • Entire agreement
  • exclusion of statutory implied terms 234–237
  • false statements 232
  • fraudulent misrepresentation 233
  • liability, exclusions and limitations of 237–238
  • pre-contractual representations 233
  • purpose of provision 231–232
  • sale and leaseback transactions 239
  • Sale of Goods Act 1977 234
  • ship sale transaction 238–239
  • statutory implied terms 234
  • Escrow agreement see Deposit holding agreement
  • Excluded items
  • purchase price 48–49
  • Shipsale 22, 27–28, 34
  • Exclusion agreements
  • english law and arbitration 246
  • Exercise of due diligence
  • vessel delay 141
  • Failure to give notice of readiness
  • Saleform 2011 198–199
  • Shipsale 22, 197–199
  • Singapore Ship Sale Form 2011 199
  • Failure to lodge deposit
  • deduction of bank charges 186
  • general 184–186
  • seller's right to cancel 186
  • seller's right to claim deposit amount 186–188
  • seller's right to compensation 188
  • Failure to pay purchase price
  • seller's rights 188–189
  • Shipsale 22, 188–189
  • seller's rights 188–189
  • Fair wear and tear
  • condition of vessel at delivery 113
  • Familiarisation
  • buyer's on-board representatives 88
  • Financial closing see Documentary closing
  • Flag registry
  • buyers 19
  • post-delivery obligations 183
  • Flag state 12, 19
  • Force majeure
  • generally 264–266
  • Fraudulent misrepresentation
  • entire agreement and 233
  • Freedom to trade and operate
  • delivery documents 170
  • Free from arrest
  • condition of vessel at delivery 128
  • Free from charges
  • condition of vessel at delivery 127
  • Free from debts whatsoever
  • condition of vessel at delivery 128
  • Free from liens
  • condition of vessel at delivery 126–127
  • Free from mortgages
  • condition of vessel at delivery 125
  • Free of average damage affecting class
  • condition of vessel at delivery 115–116
  • Free of cargo
  • condition of vessel at delivery 117
  • Free of stowaways
  • condition of vessel at delivery 117
  • Frustration, total loss and
  • Shipsale 22, 213
  • Full free of bank charges
  • payments 154–155
  • Good faith
  • generally 261
  • Governing law
  • meaning 248
  • post-Brexit position 249
  • Rome Regulation 1, 248–249
  • Rome Regulation 1I 249
  • Shipsale 22, 248–249
  • Grossing-up provision
  • payments 155–156
  • Gross tons/net tons (GT/NT)
  • Shipsale 22, 11
  • Guarantees
  • ship sale agreement 257–259
  • Guarantors
  • Shipsale 22, 9–10, 230
  • Health and safety
  • buyer's on-board representatives 86
  • Holding agreement
  • deposit 61–62
  • “Hold to order” mechanism
  • advance funding arrangements 159–160
  • Hong Kong Convention 267, 268
  • IHS Maritime 10
  • Included items
  • purchase price 48–49
  • Shipsale 22, 27–28, 33–34
  • Indemnity
  • Shipsale 22, 221
  • Indemnity distinct
  • condition of vessel at delivery 131
  • Inspection 28, 30
  • breakage, damage 96
  • buyer's discretion 73–74
  • buyer's obligation 73
  • buyer's rights during 95
  • classification-society-approved diver 93
  • classification society surveyor determines scope 93
  • condition of vessel at delivery 111–112
  • diver's breakage, damage 96–98
  • introductions 71
  • liability of classification societies 79–83
  • location of 93–94
  • no notice of readiness before completion 98–99
  • pay for 92
  • responsible 92
  • scope for 92–93
  • seller's obligation 73
  • Shipsale 22, 14
  • buyer 74–75
  • buyer's bargaining position 78
  • effect of acceptance 77–78
  • failure to select alternative 71–72
  • post-signing 72–74
  • pre-signing 72
  • sale without 74
  • scope of 75–76
  • ship's classification society records 76–77
  • three alternatives 71
  • timing 94–95
  • underwater 17, 26
  • underwater parts below 92–93
  • underwater regime 90–91
  • Intellectual property rights
  • generally 266
  • Interest
  • deposit 67
  • sellers 202
  • Intermediate term
  • condition of vessel at delivery 121–122
  • International Association of Classification Societies (IACS) 13
  • International Convention on Tonnage Measurement of Ships (1969) 11
  • International Maritime Organisation (IMO)
  • bunkers 146
  • number 10–11
  • objectives 10
  • International Safety Management (ISM) 182
  • International Ship and Port Facility Security (ISPS) 182
  • Joint survey
  • bunkers 145–146
  • Know Your Client (KYC) 7, 9
  • Language
  • delivery documents 162
  • Late delivery of ship
  • sellers 204
  • Law Reform Act 1943 213
  • Legalisation
  • delivery documents 163
  • Legally binding agreement 40–42, 44
  • Legislation
  • anti-corruption 220
  • buyer and seller 6–7
  • Letter of indemnity
  • buyer's on-board representatives 85–86
  • Letter to satellite communication provider
  • delivery documents 169–170
  • Liability 5
  • of classification societies 79–83
  • entire agreement 237–238
  • Liquidated damages 194–195
  • Nipponsale 1999 194–195
  • Singapore Ship Sale Form (SSF) 2011 194–195
  • LMAA intermediate claims procedure 2021
  • text of sample copy 376–384
  • LMAA small claims procedure 2021
  • text of sample copy 386–390
  • LMAA Terms and Procedures 2021
  • text of sample copy 349–375
  • London Maritime Arbitrators Association (LMAA)
  • arbitral tribunal 244–245
  • intermediate claims procedure 247–248
  • small claims procedure 247
  • Made without deduction, set-off or withholding
  • payments 155
  • Mediation
  • resolving disputes by 250–252
  • Memorandum of Agreement
  • Shipsale 22, 231
  • Memorandum of Agreement (MOA) 2, 46
  • effectiveness 3–4
  • Shipsale 22, 3–4
  • Misleading statements
  • entire agreement and 232
  • Negligence
  • buyer's right to claim compensation 200–201
  • Nipponsale 1999 21, 37
  • buyer's right to claim compensation 201
  • change of name and funnel markings 180–181
  • choice of governing law and arbitration 242–243
  • confidentiality obligations 226
  • electronic signatures clause 256
  • failure to lodge deposit
  • deduction of bank charges 186
  • general 184–186
  • seller's right to cancel 186
  • seller's right to claim deposit amount 186–188
  • seller's right to compensation 188
  • failure to pay purchase price
  • seller's rights 188–189
  • inspection 71
  • liquidated damages 194–195
  • resolving disputes by arbitration 241
  • resolving disputes in court 249–250
  • text of sample copy 310–315
  • total loss 212–214
  • vessel delay 143–144
  • No duty to disclose
  • condition of vessel at delivery 128–129
  • No duty to report class matters
  • condition of vessel at delivery 118–119
  • No grounding letter
  • delivery documents 170–171
  • Nomination
  • of substitute buyers
  • Shipsale 22, 7–9
  • Nominees 8
  • deposit 69
  • Non-delivery of ship
  • sellers 203
  • Non-delivery of spare part
  • sellers 203
  • NOR see Notice of Readiness (NOR)
  • Notarisation
  • delivery documents 163
  • Notice
  • arbitration proceedings 228
  • and communications 228
  • compliance with provisions 230
  • deeming provisions 229
  • details 227–228
  • email 229
  • in English language 228–229
  • express requirement to give 228
  • guarantors 230
  • presumption of good service 229
  • Shipsale 22, 227–230
  • Notice of readiness (NOR) 16, 25, 28, 33
  • delivery 174
  • failure to give 197–199
  • Notices
  • Shipsale 22, 248
  • Oils and greases
  • excluded from sale 148
  • included from sale 148
  • joint survey 145–146
  • payments 154
  • price calculation 148
  • timing of payment 148
  • “Outright and definite”
  • sale 77
  • Overriding compensatory principle 191–192
  • Parallel registration see Bareboat registration
  • Partial invalidity
  • generally 262–263
  • Partial loss
  • Shipsale 22, 214
  • Part payment
  • deposit 59–60
  • Payments
  • bank letters 160
  • for bunkers, oils and greases 154
  • credit transfers 157–158
  • currency 154
  • full free of bank charges 154–155
  • grossing-up provision 155–156
  • introduction 149
  • made in immediately available funds 154
  • made without deduction, set-off or withholding 155
  • methods 157
  • mode 150
  • payable at delivery 154
  • permitted delays 150–152
  • release of deposit 152–153
  • release of interest 153
  • “sellers’ account” 153
  • taxes, fees and expenses 156
  • Permitted delays
  • payments 150–152
  • Physical closing meeting 18
  • “Physically ready for delivery”
  • delivery notices 135–136
  • Physical meeting
  • documentary closing 176–177
  • Physical signature
  • option for 255
  • Post-delivery
  • certification 182
  • change of name and funnel markings 180–181
  • Classification Society 183
  • deactivating satellite communications system 180
  • familiarisation 182
  • flag matters 183
  • safety 182
  • ship insurances 182
  • Technical Documents 181–182
  • third-party agreements 183
  • Postdelivery trading restrictions
  • generally 267
  • Power of attorney
  • delivery documents 166
  • Pre-contractual representations
  • entire agreement and 233
  • Principle of corporate personality 4, 5
  • Purchase price
  • address commission 51
  • amount 48
  • broker claim commission 53–54
  • broker s’ commission 49–50
  • calculating commission 50
  • commission be earned 53
  • deposit 49
  • documenting commission arrangements 50–51
  • excluded items 48–49
  • fixed or subject to adjustment 49
  • included items 48–49
  • no privity of contract 56–57
  • Shipsale 22, 14
  • S&P brokers entitlement 52
  • trust relationship 56
  • Recap message 45–47
  • Registrar of Ships 11
  • Release of deposit
  • payments 152–153
  • Release of interest
  • payments 153
  • Resolving disputes
  • by arbitration 241
  • in court 249–250
  • by mediation 250–252
  • Safely afloat
  • condition of vessel at delivery 111
  • Sale and leaseback transactions
  • entire agreement and 239
  • Sale and purchase brokers 45
  • Sale of Goods Act (SGA) 1979
  • delivery, definition of 173
  • entire agreement 234
  • sellers’ termination rights 190
  • Sanctioned Party
  • definition 216
  • warranty 216
  • Sanctioning Authority 216
  • Sanctions
  • Shipsale 22, 215–218
  • Sanctions clause 7
  • Satellite communications system
  • deactivation 180
  • “Sellers’ account”
  • payments 153
  • Seller's documents
  • delivery documents 164
  • Seller's indemnity
  • condition of vessel at delivery 129–131
  • Seller's obligation
  • inspection 73
  • Seller's right to propose
  • vessel delay 140–141
  • Shiplease
  • text of sample copy 339–348
  • Singapore Chamber of Maritime Arbitration (SCMA)
  • Arbitration Rules 243
  • Single ship company 6
  • Spare parts and equipment 34–35
  • “S&P brokers” see Sale and purchase brokers
  • Standard of repair
  • dry-dock inspection 104–105
  • Statutory implied terms
  • condition of vessel at delivery 118
  • entire agreement and 234
  • Statutory surveys 13
  • Stores and provisions 37
  • Subjects
  • contract formation 39–41
  • device 41–42
  • lifting of 42
  • deadline 43
  • failure 43
  • no “subjects” 43
  • recap message 45–47
  • sale agreement, effective date of 44
  • in ship sale transactions 42
  • survival of provisions 44–45
  • Subject to contract 41, 47
  • Survival of provisions 44–45
  • Tailshaft survey
  • dry-dock inspection 106–107
  • Taxes, fees and expenses
  • payments 156
  • Technical Documents 29
  • post-delivery obligations 181–182
  • Technical documents
  • delivery documents 172
  • Third-party agreements
  • post-delivery obligations 183
  • Third-party rights
  • Contracts (Rights of Third Parties) Act 1999 263
  • exclusion 263–264
  • generally 263–264
  • Timing of payment
  • oils and greases 148
  • Total loss 29
  • consequences 214
  • constructive 213
  • defined 212
  • deposit 68–69
  • and frustration 213
  • meaning 212–213
  • Nipponsale 1999 212–214
  • partial loss 214
  • Saleform 2011 212–213
  • Shipsale 22, 212–214
  • Singapore Ship Sale Form 2011 212–213
  • Transcript of register 5
  • Transfer by novation 8
  • Transfer of ownership 16
  • Underwater inspection
  • breakage, damage 96
  • buyer's rights during 95
  • classification-society-approved diver 93
  • classification society surveyor determines scope 93
  • delivery notices 136
  • diver's breakage, damage 96–98
  • location of 93–94
  • no notice of readiness before completion 98–99
  • pay for 92
  • responsible 92
  • scope for 92–93
  • timing 94–95
  • underwater parts below 92–93
  • underwater regime 90–91
  • Unfair Contract Terms Act 1977 201
  • Unfair Terms in Consumer Contracts Regulations 1999 201
  • Valid certificates
  • condition of vessel at delivery 116–117
  • Variations
  • generally 261–262
  • Vessel delay
  • buyer's options upon receipt 142
  • consequences of buyer accepting new cancelling date 142–143
  • consequences of buyer terminating sale agreement 143
  • exercise of due diligence 141
  • introduction 140
  • Nipponsale 1999 143–144
  • seller anticipates 141
  • seller exercise 143
  • seller may give notice 141
  • seller restriction 142
  • seller's right to propose 140–141
  • Vessel's Flag Registry 12
  • Warranty
  • acting as principal 217
  • breach of 217–218
  • condition of vessel at delivery 120–121, 131
  • Sanctioned Party 215–216
  • sanctions 217
  • Shipsale 22, 215–218
  • Without condition/recommendation 30–31

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