ABSTRACT
Each of the buyer and the builder may need the option to transfer to a third party the rights or obligations created by the contract. The builder may, for example, be unable to obtain finance for the construction of the vessel unless the instalments of the contract price are assigned to his bank. A right of transfer may in particular be needed by the buyer to secure financing in respect of payment of his pre-delivery instalments or, alternatively, if he views the contract as a speculation against a rising newbuilding market, to permit him to on-sell the vessel before she is delivered.1 It is equally possible that the buyer may decide to sell the vessel shortly after her delivery, in which event his ‘‘on-purchaser’’ will almost certainly wish to enjoy the benefit of the builder’s post-delivery warranty against defects.2
