At the documentation committee meeting held on September 21-22, the new BIMCO MOA was subject to a review of BIMCO`s strategy for awarding contracts for all sectors of the marine industry. BIMCO is working on a clear and comprehensive alternative contract for the sales and purchasing market, in line with modern practice, and the standard is expected to be published in early 2021. The clauses follow the sequence of events as they take place in practice. The new contract is accompanied by three annexes that contain lists of items or are excluded from the sale, as well as documents that must be handed over upon delivery by sellers and buyers. The structure of the new form makes it easy to navigate and simplicity has been the key for the editorial team. Some of the main features of the new form are: while it would be easy to reflect the structure and content of sales and sales contracts that have existed for decades, BIMCO`s objective is to create a contract that reflects in a new and innovative way, in a clear, fair and complete way the sequence of events of a process of sale and purchase of ships. A sales contract is necessarily legalistic, but it must also be a practical document that can be used without substantial modification for as wide a range of ship sales scenarios as possible worldwide. Work on the agreement is progressing as planned and the next step will be to engage the industry in order to obtain valuable feedback. The first four clauses define the contractual framework and the purpose of the conditions applicable to the effectiveness of the contract, the purchase price and what is included in the sale and excluded from the sale.
The new MOA will bIMCO`s “Trademark” box layout contains all important contract information, such as ship details, deposit, purchase price, inspection locations and delivery dates and notifications. The order of clauses follows the timing of events during a sale and purchase of ships, so the contract is easy to read and follow. “Surprisingly, we don`t have a default S-P agreement, but we think it`s an obvious void in our library of documents that we should fill. We want to rethink the MOAs and propose a clearer and chronologically structured agreement compared to other forms currently in use,” explains Mr. Sarre. SALEFORM is the international memorandum of understanding of the Norwegian Maritime Brokers Association on the sale and purchase of ships. The copyrights in this document are held by the Norwegian Maritime Brokers Association. The last edition of this contract is SALEFORM 2012. BIMCO`s Documentary Committee welcomed a new Standard Memorandum of Understanding (MOA) for the sale and purchase of ships, opening the doors to a full sectoral consultation before completing and publishing the new standard next year. Learn more about BIMCO`s new sales and leasing schedule on December 8 at 9:00 a.m.
(German time). The seminar lasts about 45 minutes and the participants… Recently, we have been working with some of the industry`s leading sales and purchasing lawyers to “test” the new form and ensure that the new wording is legally flawless.