Liens on the Vessel Usually the contract provides expressly for two liens on the vessel: (a) one in favor of the builder/seller for the unpaid portion of the contract price; and (b) the other in favor of the buyer. The two liens are usually mutually exclusive, in the sense that the owners lien covers the yacht, materials and equipment provided for the project, up to the stage for which the purchase price has been paid. On the other hand, the yards lien extends to all materials not yet paid … [Read more...]
Yacht Building – Common Terms and Conditions – Part Four
The Satisfactory Quality Test Before starting about common terms and conditions, let's continue what was left from the previous part. Unless the owner loses its right to reject by express or implied acceptance of the yacht, and always subject to express clauses to the contrary, section 14 provides for a sharp and strong remedy, particularly when the return of the purchase price is covered by a performance guarantee. [source] Remedies Available Section 15A of the Act provides that, … [Read more...]
Yacht Building Contract Conditions and Description Terms – Part Three
Contract conditions in yacht building are explained further in this chapter. I have not imagined that it will take me so long to adapt the paragraphs in so many articles. It is not the last one in the series, and many more will come after this one. I just hope you will not be bored with its nature. Legislation is rather necessary when dealing with everything involving boats, yachts, or super-yachts. Delving in this subject has to make you prepared to deal with brokers, owners, lawyers, notaries … [Read more...]
Yacht Building Conditions – Part 2 of Contracts Legislation
Applicable law and nature of the contract It should be noted that certain jurisdictions classify shipbuilding contracts, and hence their yacht counterpart, as construction contracts instead, and therefore the choice of law applicable to the agreement is crucial. Choice of law clauses may expressly choose the law of a given country or can be less straightforward, making reference to the law of a place with a particular connection with the contract at stake. A further difficulty is that … [Read more...]
Yacht Building Contracts – The Legal Framework
Introduction Yacht building contracts (as any other shipbuilding contracts) are complex transactions devised for the construction of a floating vessel (be it an oil tanker, a cargo ship, a yacht, or a superyacht) in a complex contractual framework. In the industry, they rather use standard form contracts which will be amended at will by the parties. In those templates will be negotiated individual agreements. Shipyards will produce sometimes their own contracts just to reflect their … [Read more...]