Before signing, each party is also encouraged to perform a temporary due diligence on the other. Modern ship ownership is generally structured with individual owners registered in regulatory-friendly offshore jurisdictions. Opaque structures can mask the identity and disposition of the real opponent of the treaty. Like inspections, safeguards should be applied, for example, in the moa; Proof of good performance, proof of ownership of the ship, etc. And similarly, it is recommended to perform basic tests before engaging with the MoA, according to which it can be more difficult to avoid selling if an unsatisfactory position is detected. Normally, a buyer pays for the ship`s bunkers that remain on board as well as for unused lubricants and hydraulic oils. In practice, this is often deducted directly from the purchase price. These provisions relate to the various circumstances that require the buyer for dry treatment or inspection of divers, which bears the costs of these inspections, which may be based on the results of the inspection, as well as insurance and compensation related to claims during dry treatment. Clauses may also include the buyer`s right to inspect the aft shaft or other elements of the vessel during dry licking. The other measure is the documentary delivery of the ship by signing a delivery and receipt protocol (“PoDA”).
The PoDA records the exact time of delivery and the place of delivery. It is generally considered an indulgence of the exact date and the risk card from the seller to the buyer. As a general rule, it is signed by the authorized representatives of the shoreline meeting, once the payment of the purchase price is confirmed. Before the MoA is signed, there are several important steps. In general, a potential buyer, or a zealous seller, will approach a broker as the first point of contact. Brokers are generally paid on the basis of commissions, depending on the closure, calculated on the value of the ship. Traditionally, it is the seller who is legally responsible for broker commissions. The total brokerage fee is often shared between the seller`s and the buyer`s brokers, with an effective commission of one percent each. In practice, there are many variations of this arrangement. Parties should ensure that brokers are still not involved in the main purchase and sale agreement. The buyer`s main obligation is the payment of the agreed purchase price of the vessel. Normally, the timing of payment is not the essential factor, unless there is an explicit clause in the contract.
The purchaser must also accept delivery under the Property Sale Act in 1979, s27. It is provided at s27 that payment and delivery must be made simultaneously, unless otherwise stipulated. Of course, the buyer also has an obligation to avoid misrepresentation during the negotiation phase. The parties are cautioned to ensure that these negotiations are not likely to create legally binding agreements inadvertently. This can (and a) can be done by accidentally extending an offer that can be accepted through a broker (as a presumed agent) or by accepting such an offer.