Vessel Construction Agreement

Access: When the vessel(s) is built on the owner`s site, it is important that the vessel`s access and inspection rights are included in the agreement. In case of delay. In case of delay of the buyer under the loan agreement or the shipyard under the shipbuilding contract, the buyer is obliged to issue a call for tenders to the parent company for the operational notification on which the SNA takes effect and the parent company: – pay the sale price to the buyer according to a specific formula in the SNA • take over all the rights arising from the obligations of the buyer arising from the shipbuilding contract; including the right to claim a refund from the shipyard, while the buyer uses the proceeds from the sale of the shipbuilding contract for the advance of the buyer`s bank. Following such events, the parent company, as the new purchaser, must request a refund from the shipyard under the shipbuilding contract. Step 2 Through a Standby Novation Agreement (« ANS »), buyer sells and transfers all of its rights and obligations under the shipbuilding contract to buyer`s parent company. However, this does not take effect immediately, but takes effect only under the following conditions: – after the buyer has refused the ship, in accordance with the shipbuilding contract, by notification to the shipyard; • after the Buyer has sent a notification to the Buyer`s parent company (« Operational Notification ») • In the SNA, the Parent Company agrees that the Parent Company is bound by the terms of the Shipbuilding Contract, including (i) the Rejection of the Ship by the Buyer under the Shipbuilding Contract and (ii) the terms of the Shipbuilding Contract with respect to reimbursement. PART I. SHIPBUILDING CONTRACTS 1. Type of shipbuilding contract Subject to the terms of the individual contract, the general position of Hong Kong law and English law is that a shipbuilding contract is:- A. in the first place, a contract for the sale and purchase of goods. A shipbuilding contract provides for the sale and delivery of a vessel to the buyer once completed.

In most cases, the conditions provide that ownership of the ship is transferred to the buyer only at the time of delivery and is therefore generally considered a sale of future goods. B. . Characteristics of a construction contract for the supply of transformation, service and materials In addition to the sale, purchase and delivery of a ship, the seller of a shipbuilding contract also undertakes to carry out a manufacturing process for which the buyer has the right to monitor, inspect and participate (cf. agreement on the sale of used tonnages). Please see the following sections regarding the shipbuilding process and buyer`s rights for monitoring and inspection. C. an « agreement for sale » under the Sale of Goods and Sale of Good Things Act 1979 (Cap.

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