The Ship Sale and Purchase Agreement is essential for any vessel ownership transfer in the United States. This document is used when parties need to formalize the sale of commercial vessels, private yachts, or other maritime assets. It ensures compliance with U.S. maritime laws, including the Jones Act and Maritime Commercial Instruments and Liens Act. The agreement covers crucial aspects such as vessel specifications, payment terms, inspection rights, warranties, and closing conditions, while addressing regulatory requirements for registration, documentation, and environmental compliance.
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1. Parties: Identification of buyer and seller, including full legal names and addresses
2. Background: Context of the sale, including vessel identification and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Vessel Description and Specifications: Detailed description of the vessel, including specifications, equipment, and documentation
5. Purchase Price and Payment Terms: Agreement on price, payment schedule, and method of payment
6. Inspections and Surveys: Rights and procedures for vessel inspection and survey requirements
7. Title and Risk Transfer: Conditions and timing of title transfer and risk allocation
8. Representations and Warranties: Statements of fact and promises by both parties
9. Closing Conditions: Requirements that must be met before completion of sale
10. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution
1. Escrow Arrangements: Terms for holding and releasing funds through escrow when parties agree to use escrow services
2. Crew Arrangements: Provisions regarding existing crew contracts when vessel is sold with current crew
3. Environmental Compliance: Specific environmental requirements and compliance measures for environmentally sensitive operations
4. Charter Arrangements: Provisions regarding existing charter contracts when vessel has ongoing commitments
5. Tax Indemnification: Allocation of tax liabilities between parties for complex tax scenarios
1. Vessel Specifications: Detailed technical specifications of the vessel
2. Inventory List: Complete inventory of equipment, spare parts, and accessories
3. Certificates and Documentation: List of all required certificates and registration documents
4. Survey Reports: Recent survey reports and condition assessments
5. Classification Records: Vessel classification society records and certificates
6. Insurance Certificates: Current insurance documentation and coverage details
7. Protocol of Delivery and Acceptance: Template for documenting the physical transfer of the vessel
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