4 Sale and Purchase of Second-Hand Ships
Edited By: David J Attard, Malgosia Fitzmaurice, Ignacio Arroyo, Norman Martinez, Elda Belja
- Seafarers — Nationality of ships — Straits — Contract claims
This chapter delves into the practice of the selling and purchasing of second-hand ships. It looks into the standard forms used for the sale of ships, in particular the so-called ‘Saleforms’. These forms are primarily used for the sale of cargo-carrying vessels but, with appropriate adaptation, may also be used for the sale of passenger vessels, oil rigs, and other commercially used vessels. The chapter compares the standard contracts used for sale and purchase of second-hand ships to newbuilding contracts. A newbuilding contract is a substantial construction contract of significant length accompanied by a number of detailed schedules including the technical specifications. It is often negotiated face to face by representatives of the shipyard and of the buyers rather than through brokers and provides for the ship to be built to precise technical standards. The form also provides for a supervision team to be in place during the construction period.