ABSTRACT
The standard wording of the SAJ Form is often amended to incorporate additional events of buyer’s default. The SAJ Form provides that, upon the buyer’s receipt of the builder’s notice of rescission, the contract “shall forthwith become null and void”. The legal position is more complex where the builder seeks to recover from the buyer the amount of any instalments of the contract price due but unpaid at the time of rescission. This will typically occur where the buyer encounters financial difficulties during the project and the builder is unable or unwilling to alter the agreed payment schedule for the vessel. The purpose of having default as well as default is to cover the situation where the buyer refuses to take delivery of the vessel, and therefore delivery never occurs and so default is never triggered.
