I Introduction

Usual features of second ship sales include negotiation through sale and purchase brokers on behalf of their principals, the formal recording of the terms of sale in a memorandum of agreement, and crucially the transfer of title and risk in the vessel from seller to buyer by delivery of the bill of sale. This is the case whether the sale is of a vessel for continuing trading purposes or for end-of-life recycling or demolition. If questioned, most sellers and shipowners, and most of those who assist them in sales of the ships, would not expect to retain any liability in relation to the activities of the ship following the change of ownership, except in respect of the breach of any specific contractual warranties as to the physical or legal state of the vessel at the time of delivery. However, following the decision of the English court in Begum v Maran,1 shipowners need to be aware that, in the context of sales of vessels at or approaching the end of their working life, they can be exposed to liability arising from the activities of the vessel following the sale, including where the vessel is on-sold for demolition.