Global shipowning body BIMCO has produced its own ship sale and purchase agreement – SHIPSALE 22 – with the aim of making the authoring, negotiation and execution process faster and simpler, and to provide the market with a modern and comprehensive alternative to existing sale and purchase forms.
For the first time, BIMCO has produced its own ship sale and purchase agreement. The project has taken the standards organisation just over two years to complete, involving a drafting team of nine industry specialists who provided broking, legal and commercial expertise. The process has also included an extensive industry consultation that provided the drafting team with over 800 comments and suggestions on the draft agreement, ultimately resulting in a standard Memorandum of Agreement that closely follows the typical chronological sequence of events that play out in an S&P transaction.
The agreement consists of four parts of which the first section summarises key information such as the details of the ship, inspection, and the purchase price. The second section contains the terms and conditions of the agreement and the third deals with documents to be provided plus the protocol of delivery and acceptance. The fourth section is where any items that are excluded from the sale should be listed.