Shipbuilding, sale, finance and registration

Chapter 2 discusses the legal instruments framing the shipbuilding and the ship sale contracts, the financing agreements and the registration related thereto. Specific terms of the shipbuilding contract, such as “subject to details” and their impact on the formation of the contract, as well as terms regarding pre-delivery inspections, delivery of the ship and warranties are analysed under English law. The sale of second-hand tonnage relies considerably on standard form contracts to which amendments are invariably negotiated. The most common forms are discussed in this chapter with special consideration given to key features such as the deposit, the Notice of Readiness and the encumbrances on the ship being sold. Ship registration in the British Registry is analysed under the current legal framework. Basic features are outlined, such as the public and private law implications of ship registration, and its voluntary character. Close attention is devoted to the requirements for registration of ships other than fishing vessels and small ships. The evidentiary value the registration provides is also carefully considered in the spheres of both public and private law. This chapter further refers to the ship finance agreement and the main securities for the lender, among which, the mortgage over the ship. The registration of mortgages is outlined, focusing on the protection the registration affords to the mortgagee