ABSTRACT
Each of the buyer and the builder may, for a variety of reasons, be unable or unwilling to commit himself unconditionally to the contract at the time of its signature. The terms of the agreement may, for example, have to be approved formally by each party’s board of directors. The parties may also need to secure bank financing to meet either the costs of construction or the contract price. Perhaps most importantly, the law governing the contract or applying at the shipyard may stipulate that a governmental approval or licence is required for the construction or export of the vessel.
