Create a custom invoice. This agreement lays a strong foundation and framework for all steps in an otherwise complicated process and provides how to address and remedy them should something go wrong. A successful individual or business relies on being able to maximize profits by anticipating the largest sales periods and knowing how much inventory is needed to meet the demand.
They are normally carried out by the brokers appointed by both buyer and seller. Initially, the broker of the buyer will make the telex exchange with the seller's brokers to make an invitation to offer. The main concerns of both parties at this stage are the pricing, the particulars of the ship and the lay-days of the transaction.
After this approach, both parties will have the price bargaining and negotiations of the main terms of contract. If the basic terms are agreed upon by both parties, a recap telex which recaps the terms discussed will be exchanged, subject to details to be agreed later.
With the recap telex, both parties can further discuss and bargain the main terms of contracts. After all the details are agreed through numerous communications, a formal contract for the sale of ship - Memorandum of Agreement MOA - will be drawn up.
However, there are times the contract may be subject to some conditions such as obtaining approvals from directors or shareholders, or licences. After drawing the sales form, 10 percent of the deposit will be paid by the buyer and the buyer can appoint his own surveyor to inspect the ship.
Inspections stage[ edit ] After the forming of contract, it will enter to the inspection stage. There are two major parts in the inspections stage which include the documents inspection and the physical inspection of the ship afloat.
For the Sales and purchase inspection, Sales and purchase buyer will check the ship's class records and certificate records. The inspection of records will reveal the history of the ship's maintenance and compliance with the requirement of class.
Furthermore, the buyer also should check the mortgages records and the maritime lien records to prevent any damages or loss subject to the legal issue of the ship which occurred before the delivery of the ship.
For the physical inspection, checks are usually made to the surface of the ship and its logbook, unless otherwise agreed.
It is preferable to hire a surveyor from any reputed company to inspect the vessel for all safety, certificates, equipments, engine issues etc. A sea trial is advisable. Completion[ edit ] The final stage of sale and purchase is known as completion stage.
It involves pre-delivery matters including inspection of underwater parts by the classification society, delivery of documents and the physical delivery of the ship upon payment of the balance of the contract price.
Such underwater inspections can be done at the buyer's request in which case if it is not required by the Classification Society's surveyor the due charges will be on the buyer's account.
For the Documents and Physical delivery, it usually occurs in different places depending on the location of the ship. The final inspection of underwater parts is located in the drydock of the port of delivery.
To obtain the certificate of class with regards to the safety, a survey of the ship's bottom and underwater parts is conducted by the surveyor of the classification society.
The surveyor may make recommendations for the repairing of ship which affect the expense of the seller before delivery. Sometimes, the buyer may appoint his own surveyor, who must be approved by the classification society, to carry out the underwater inspection while the ship is afloat.
For the final closing of transaction, the MOA specifies some necessary procedures. Some documents are required which include the closing memo, minutes of meeting of the seller's directors and shareholders, a certificate of good standing, a power of attorney, the bill of sale, certificate of class, any consents or licenses required by the government authority, a certificate by the registrar of the ship's registry permitting the sale.
Furthermore, the seller should arrange the deletion of his name from the registry and deletion of the existing flag if the buyer wants to change the flag. Also, cancellation of the insurance cover, settlement of mortgage and repatriation of crew should also be made ready by the seller.
When the seller is ready, an advance notice of delivery - Notice of Readiness- will be serviced to the buyer and the buyer will arrange the payment of fuel or "bunkers" and stores on board and instruct his bank to make the payment on the actual delivery date.
Protection of buyer[ edit ] There are some clauses under the sales form protecting the interest of the buyer of ship. For example, clause 9 of Sale Form has provided some limited protection for the buyer. Under the clause 9, the seller warrants that the vessel is free from all charters, encumbrances, mortgages and maritime liens or any other debts whatsoever at the time of delivery.
The buyer can claim against the seller for all consequences of claims make against the vessel which have been incurred prior to the time of delivery. If the ship cannot settle down all the mortgages and other claim attached to the ship before the delivery, the buyer can discharge the purchase price to cover this part of claim.
Normally, the buyer would also retain part of the payment for around six months to secure there is no any claims and Maritime Liens of the ship. However, it is difficult for the buyer to terminate the contact even if the vessel still has some encumbrances, mortgages or maritime liens at the time of delivery.
Under the English lawthe " warranty " is a contractual promise which is not the condition of the contract, so the innocent party can only claim damages but not terminate the contact if there is breach of warranty.
Thus, it is difficult for the buyer to terminate the contract.Sales tax applies to retail sales of certain tangible personal property and services. Use tax applies if you buy tangible personal property and services outside the state and use it within New York State. Calculate the amount of sales tax and total purchase amount given the price of an item and the sales tax rate percentage.
The purchase order is a written commercial document issued by the buyer to the seller, comprising of containing types, prices, quantity, quality and terms of the goods to be delivered.
On the other hand, the sales order is a confirmation document prepared by the seller and sent to customers before the delivery of specified goods, at the customer’s place. Proof of sales tax payment or sales tax exemption, or purchase priceWhen you register a vehicle in New York (at a DMV office), you must eitherpay the sales taxprove that sales tax was paidprove your vehicle registration is exempt from sales taxYou probably also will need to pay county use tax when you register.
See estimate registration fees and . A sale and purchase agreement is a legally binding contract between you and the seller. It sets out all the details, terms and conditions of the sale. A sales and purchase agreement is a legal contract that details the terms of a transaction and obligates a buyer to buy and a seller to sell the product.