BIMCO launches ship sale and purchase agreement

Independent shipowners’ association 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. It is the first time that BIMCO has produced its own ship sale and purchase agreement. The association said that the project had taken the standards organization just over two years to complete, involving a drafting team of nine industry specialists who provided broking, legal and commercial expertise. The process also included an extensive industry consultation that provided the drafting team with more than 800 comments and suggestions on the draft agreement.

The agreement consists of four parts”

  • The first section summarizes 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.
  • 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.

Francis Sarre of CMB who headed the project team said that “with SHIPSALE 22, the team has focused on drafting an agreement that is clearly written and will need far fewer amendments and additional clauses compared to other standard sale forms. This will make the negotiation process faster and simpler and ultimately saves users time and money”.