Vessel Purchase Agreement for United Arab Emirates

Vessel Purchase Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE maritime law that documents the sale and purchase of a vessel. This agreement details the terms and conditions of the vessel transfer, including purchase price, payment terms, vessel specifications, warranties, and compliance with UAE maritime regulations. It incorporates specific requirements under UAE Federal Law No. 26 of 1981 (Maritime Law) and related maritime legislation, ensuring proper transfer of title and registration. The agreement addresses inspection requirements, condition of sale, and includes necessary schedules for technical specifications and certificates.

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What is a Vessel Purchase Agreement?

A Vessel Purchase Agreement is a crucial document used in maritime transactions within the UAE for the sale and transfer of vessels. It is essential for any entity looking to acquire or dispose of maritime assets under UAE jurisdiction. The agreement must comply with UAE Maritime Law (Federal Law No. 26 of 1981) and related regulations, particularly regarding vessel registration, ownership transfer, and maritime liens. This document is typically used in commercial maritime transactions, covering everything from small commercial vessels to large cargo ships. The agreement includes detailed vessel specifications, inspection requirements, warranties, payment terms, and transfer procedures. It's particularly important in the UAE's maritime sector due to the country's position as a major maritime hub and its specific regulatory requirements for vessel ownership and registration.

What sections should be included in a Vessel Purchase Agreement?

1. Parties: Identification of the Seller and Buyer, including full legal names, registration details, and addresses

2. Background: Context of the transaction, brief description of the vessel, and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, including technical maritime terms

4. Vessel Description: Detailed description of the vessel including name, type, specifications, registration number, and current flag

5. Purchase Price and Payment Terms: Agreement on purchase price, payment schedule, deposit requirements, and payment methods

6. Inspection and Acceptance: Terms for vessel inspection, sea trials, and acceptance procedures

7. Conditions Precedent: Conditions that must be satisfied before completion of the sale

8. Completion and Transfer of Title: Process and requirements for transferring vessel ownership and registration

9. Seller's Warranties: Warranties regarding vessel ownership, condition, encumbrances, and compliance with regulations

10. Buyer's Warranties: Warranties regarding authority to purchase and compliance with legal requirements

11. Registration and Documentation: Requirements for vessel registration transfer and necessary documentation

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Notices: Process for formal communications between parties

15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

What sections are optional to include in a Vessel Purchase Agreement?

1. Vessel Management During Transition: Used when there's a gap between signing and completion, detailing vessel management responsibilities

2. Crew Arrangements: Include when existing crew contracts need to be addressed or transferred

3. Environmental Compliance: Additional section when vessel requires specific environmental upgrades or certifications

4. Financing Provisions: Include when purchase involves third-party financing arrangements

5. Insurance Arrangements: Detailed insurance requirements when specific coverage is needed during transition

6. Tax Provisions: Include when special tax considerations apply to the transaction

7. Broker Provisions: Include when maritime brokers are involved in the transaction

What schedules should be included in a Vessel Purchase Agreement?

1. Schedule 1 - Vessel Specifications: Detailed technical specifications of the vessel

2. Schedule 2 - Vessel Certificates: List and copies of all current certificates and documentation

3. Schedule 3 - Inventory: Detailed inventory of equipment, spare parts, and belongings included in the sale

4. Schedule 4 - Protocol of Delivery and Acceptance: Form of document to be signed at completion confirming transfer

5. Schedule 5 - Outstanding Liabilities: List of any outstanding liabilities or claims against the vessel

6. Schedule 6 - Required Repairs: List of any repairs or modifications required before completion

7. Appendix A - Form of Bill of Sale: Standard form bill of sale complying with UAE requirements

8. Appendix B - Registration Documents: Forms and documents required for transfer of registration

9. Appendix C - Classification Records: Vessel's classification society records and certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Maritime and Shipping

Oil and Gas

Offshore Services

Marine Tourism

Commercial Fishing

Maritime Transport

Port Operations

Marine Construction

Maritime Defense

Yacht and Leisure Vessels

Relevant Teams

Legal

Maritime Operations

Commercial

Finance

Compliance

Risk Management

Technical Operations

Asset Management

Procurement

Insurance

Documentation

Relevant Roles

Maritime Lawyer

Fleet Manager

Marine Operations Director

Vessel Purchase Manager

Maritime Commercial Director

Ship Finance Manager

Marine Technical Manager

Compliance Officer

Maritime Risk Manager

Ship Registration Officer

Marine Insurance Manager

Maritime Project Manager

Chief Financial Officer

Legal Counsel

Marine Surveyor

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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