Memorandum Of Agreement Nippon Sale

kenty9x | September 27, 2021 | 0

The Norwegian Sales Model 1993 is currently the most widespread and internationally recognized standard contract for the sale and purchase of used tonnage (at least in the Western Hemisphere). Despite its wide use, industry feedback indicated that the form of sale could benefit from an update. BIMCO and the Norwegian Maritime Brokerage Association (“NSA”) have therefore taken up the challenge of revising the standard contract. The result is the introduction of the 2012 sales form. Clause 7 of the MOA has been amended to include increased liability to sellers, listing items that do not belong to them and that are excluded from sale. Sellers are also required to replace goods belonging to third parties when these items were on board during the inspection. It would appear that this has been inserted to ensure that buyers who have inspected the vessel are not surprised if certain goods that may have been leased by a third party are not included in the sale. The payment date provided for in the clause is clear, but it is possible that this wording may lead to difficulties of interpretation. The usual position is that, in the absence of indications to the contrary, the grouping of brokers is proof that a binding agreement has been concluded, provided that all the conditions have been agreed.

It is possible that this new wording could lead to arguments that the agreement is not binding until the moa is signed and exchanged, although this is probably not the intention of its authors. Article 8 has been amended to include a longer list of necessary documents in the form of delivery documents.