If you`re planning to buy or sell a vessel, it`s important to have a vessel purchase agreement in place. This document serves as a legally-binding contract between the buyer and the seller, outlining all the relevant details of the transaction. In this article, we`ve put together a sample vessel purchase agreement that can be used as a guideline when drafting your own agreement.
Before we dive into the sample agreement, let`s take a quick look at some of the key elements that should be included in any vessel purchase agreement:
– Buyer and seller details: This includes the names, contact information, and addresses of both parties.
– Vessel details: This should include the make, model, and year of the vessel, as well as its length and any other important specifications.
– Purchase price: This is the amount that the buyer agrees to pay for the vessel.
– Deposit: The amount of money that the buyer puts down as a deposit to secure the sale.
– Closing date: The date that the transaction is expected to be completed, including the transfer of ownership and any necessary paperwork.
– Contingencies: Any conditions that must be met before the sale is considered final, such as a satisfactory survey or sea trial.
– Warranties: Any warranties that the seller provides regarding the vessel, such as its condition or title.
– Indemnification: The buyer and seller agree to indemnify each other against any claims or losses that may arise from the transaction.
– Governing law: The state or country whose laws will apply to the transaction.
– Signatures: Both parties should sign and date the agreement.
With these elements in mind, let`s take a look at a sample vessel purchase agreement:
Vessel Purchase Agreement
This agreement (« Agreement ») is made on [date] between [buyer name and address] (« Buyer ») and [seller name and address] (« Seller »).
1. Vessel Details
The vessel that is being sold under this Agreement is a [make, model, year, length] vessel with the following specifications:
2. Purchase Price
The purchase price for the vessel is [insert purchase price], to be paid as follows:
[insert payment details]
The Buyer shall deposit [insert deposit amount] with the Seller upon execution of this Agreement, which shall be credited toward the purchase price.
4. Closing Date
Closing shall take place on [insert closing date], at which time all funds shall be transferred and ownership of the vessel shall be transferred to the Buyer.
This Agreement is contingent upon the following:
The Seller warrants that:
The Buyer and Seller agree to indemnify and hold each other harmless against any and all claims or losses arising from this transaction, except for claims or losses arising from the gross negligence or willful misconduct of the indemnifying party.
8. Governing Law
This Agreement shall be governed by the laws of the State of [insert state], and any disputes shall be resolved in accordance with those laws.
This Agreement may be executed in counterparts, and facsimile signatures shall be deemed to be original signatures for all purposes.
A vessel purchase agreement is an important document that protects both the buyer and the seller in a vessel sale transaction. By including all the necessary elements, such as buyer and seller details, vessel specifications, purchase price, contingencies, and indemnification, you can create a legally-binding agreement that ensures a smooth and fair transaction. Use this sample agreement as a starting point when drafting your own vessel purchase agreement.