Ruling Ship Sale Purchase NSF93 Made by: Group Exavator
NSF93 Ruling Ship Sale & Purchase Made by: Group Exavator
Guideline Essentials Introductio of an A landmark Conclusion n S&P case contract
Introductio n Essentials of an S&P contract A landmark case Conclusion Guideline
Introduction .Buying Selling of second -hand ships are done using standard form contracts SALE FORMS .Only 2 Sale Forms in existence (Norwegian Nippon Sale Forms) Norwegian (NSF)-1993 version Nippon (Ni SF)-1999 version
Introduction •Buying & Selling of second ‐hand ships are done using standard form contracts SALE FORMS •Only 2 Sale Forms in existence (Norwegian & Nippon Sale Forms) Norwegian (NSF)‐ 1993 version Nippon (Ni SF)‐ 1999 version
Essentials of an S&P deal Parties (Sellers Buyers) Subject matter of sale (Vessel) .Consideration for the sale (purchase price) Conditions of sale dated signed CONTRACT
Essentials of an S&P deal • Parties (Sellers & Buyers) • Subject matter of sale (Vessel) •Consideration for the sale (purchase price) • Conditions of sale dated & signed CONTRACT
Sale Contract Once the contract is in place; Buyers pays deposit (10%) Buyers agrees to pay the full purchase price Buyers inspects the ship responds Buyers starts processes for ship registration use
Sale Contract Once the contract is in place; • Buyers pays deposit (10%) • Buyers agrees to pay the full purchase price • Buyers inspects the ship & responds • Buyers starts processes for ship registration & use
Sale Contract The Sellers agrees the following; Sellers agrees to provide advance notices and notice of readiness(NOR)regarding vessel delivery Sellers promises that vessel is free from all encumbrances Sellers promises to deliver the vessel "as it was "at the time of inspection and with Class maintained Sellers agrees to provide all required documents
Sale Contract The Sellers agrees the following; • Sellers agrees to provide advance notices and notice of readiness (NOR) regarding vessel delivery • Sellers promises that vessel is free from all encumbrances • Sellers promises to deliver the vessel “as it was “at the time of inspection and with Class maintained • Sellers agrees to provide all required documents
A landmark case on S&P contract
A landmark case on S&P contract
ervato envato a month after delivery the main engine broke down to Union Power US$7 million in 2009 It was subsequently discovered that,at the time of delivery, the vessel had a faulty crankpin that was likely to fail within a short period after the completion of the sale
Union Power US$7 million in 2009 a month after delivery the main engine broke down It was subsequently discovered that, at the time of delivery, the vessel had a faulty crankpin that was likely to fail within a short period after the completion of the sale
The buyers claimed against the sellers The sellers for damages on argued that the basis that there the wording of had been a breach Clause 11 of of the implied term NSF 93 is as to satisfactory quality as implied inconsistent by S.14 (2)of with SOGA. SOGA
The buyers claimed against the sellers for damages on the basis that there had been a breach of the implied term as to satisfactory quality as implied by S.14 (2) of SOGA. Where the seller sells goods in the course of a business, there is an implied term that the goods supplied under the contract are of satisfactory quality. The sellers argued that the wording of Clause 11 of NSF 93 is inconsistent with SOGA
11.Condition on delivery The Vessel with everything belonging to her shall be at the Sellers'risk and expense until she is delivered to the Buyers,but subject to the terms and conditions of this Agreement she shall be delivered and taken over as she was at the time of inspection,fair wear and tear excepted
11. Condition on delivery The Vessel with everything belonging to her shall be at the Sellers' risk and expense until she is delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be delivered and taken over as she was at the t ime of inspection, fair wear and tear excepted
