ABSTRACT
A shipbuilding contract is one directed towards the regulation of a substantial and complex construction project involving the supply of workmanship and materials. 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. The main legal consequence of the fact that English law categorizes a yacht-building contract as one for the sale of future goods by description is that the 1979 Sale of Goods Act is applicable to such agreements. However, two provisions of the Act are particularly important in the building context: section 13 on description and section 14 on satisfactory quality. Under the Sale of Goods Act 1979, section 17(1), title in the goods passes when the parties intend it to pass. In the context of ship sales, payment and delivery are concurrent conditions, and hence non-contractual payments entitle the yard to terminate the contract.
