Maritime Vessel Sales & Purchases - Common Issues to Consider

Introduction

The negotiation of the sale and purchase of vessels (and other maritime assets, such as drilling rigs) is frequently undertaken at pace against the backdrop of a rapidly changing market and by way of the rapid exchange by email of key commercial terms that are intended to be incorporated within a standard form industry contract (notably the Saleform 2012).

For many parties (particularly noting the significant capital investment represented by a vessel) the sale and purchase of a vessel is not an everyday transaction.

Nevertheless, legal assistance is often only sought by parties at a relatively late stage in the negotiation process, indeed it is not uncommon for the legal practitioner’s first involvement in the transaction to be when they are sent an amended Saleform 2012, advised the parties are imminently to sign it and asked to undertake a rapid ‘red flags only’ review.

Unfortunately, and all too often, the initial lawyer’s review results in the identification of numerous ‘red flags’ arising from unintended but material inconsistencies and ambiguities in the amended agreement (frequently arising from a misunderstanding as to how, and why, the standard form contracts address particular aspects of the transaction and the rights and obligations of the parties).

This webinar will consider the overall structure of a vessel sale and purchase transaction and issues that commonly arise during negotiations.

What You Will Learn

This webinar will cover the following:

• An overview of the structure of the Saleform 2012 contract
• An overview of the structure of the Shipsale 2022 contract
• Common issues arising in vessel sale and purchase transaction negotiations, including:
• Deposit and purchase price arrangements (including mortgage release arrangements)
• Significant spares and parts located ashore (in storage or undergoing repairs)
• Delivery documentation
• Delivery condition
• Sanctions and business ethics

This webinar was recorded on 23rd November 2023