To terminate the sales contract, there are two main procedures and the buyer must follow these steps: however, if the purchase of a ship is considered an acquisition of commercial assets, certain mandatory legal provisions apply. This includes the rules of common liability of the buyer and seller to pay: If the buyer used a bank credit for the purchase, the bank mortgage will also be registered on the boat. In addition, a new insurance policy will be issued in the buyer`s name and the buyer will also inform the classification company of the date and time of the purchase. 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. Under the Sale of Goods Act 1979 s.51, the purchaser has the right to sue for non-delivery of the vessel and damages. To delay delivery, the buyer can argue the difference in the value of the vessel if the purchase price of the other vessel is immediately different. In addition, the buyer may terminate the contract and seek damages if the vessel is not delivered after a certain period of time. A sale and purchase transaction culminates in the “closure.” Here, buyers and sellers (usually on the same day) exchange documents, pay and deliver and transfer the ship.
It requires careful coordination between the various parties acting by mutual agreement in order to ensure the success of the sale. Each party has its role to play. As an indication, some important participants may be to date; Seller and buyer (or authorized representative), lawyers, bankers (both financial and for payments), flag state representative, crew (old and new, if replaced), broker, class representative, insurer, with others potentially also needed, usually not all in the same place, or even in the same time zone. The “sale and purchase of ships” is an important aspect of the marine industry. These are huge sums of money (over $100 million) and require different types of expertise, such as types of ships and their function, legal knowledge, trade and negotiation knowledge. In order to reduce the number of disputes and flatten the sale and purchase procedure, the owner (seller) and buyer will normally designate brokers as intermediaries to complete the transaction. There are three main phases of the sale and purchase of a vessel, which include (1) the negotiation and contract phase, (2) the inspection phase and (3) completion.