Sale and purchase (s&p)
DOI link for Sale and purchase (s&p)
Sale and purchase (s&p) book
Sale and purchase is a separate area of shipping and shipbroking. Buyers and sellers of ships are normally represented by specialist sale and purchase brokers. The standard contract containing the terms for the sale and purchase of ships is the Norwegian Shipbrokers’ Association Memorandum of Agreement, code named the Saleform 1993. This was adopted by the Baltic and International Maritime Council (BIMCO) in 1956 and the form was subsequently revised in 1966, 1983 and 1986/87. It contains:
—details of the ship, such as its year of build, flag, call sign and capacities; —the purchase price; —deposit (10% being standard); —payment terms; —inspections of records and of the ship herself and when and where this is to
take place; —notices, time and place of delivery; —drydocking, if agreed; —what spares and other items, and what quantity of bunkers, are to be on board; —the documentation to accompany the sale; —any encumbrances such as liens; —which party to pay which fees and taxes; —condition and class on delivery; —an arbitration clause; —other formalities.