Selçuk Esenyel, the founding partner of Esenyel&Partners Law Firm, was the guest of KOSDER Academy Sector Talks. Esenyel talked about the following in the conversation on “The points to be considered in ship purchase and sale contracts”. Talks moderated by KOSDER Secretary General Attorney Begüm Nergiz Birben.
COVID 19 changes contracts
“The market is a little volatile these days. There have also been changes in the purchase and sale contracts brought together by Covid-19. We evaluate ship purchase and sale contracts in 3 stages. The first is pre-sale; bargain-negotiations and correspondence. The second is the sales day phase; The process after signing the sales contract. Finally, we look at it as the sales and after-sales phase.”
There may be problems during the negotiation phase
“We, as lawyers, are not very present at the first stage. Generally, this process is carried out by brokers. At the first stage, some problems may arise in the period of bargains and negotiations. For example, when the buyer gives up due to the binding correspondence being written during the bargaining stage, the seller is faced with some demands and a lawsuit regarding the right. I think there are some shortcomings here. It is necessary to refrain from making binding correspondence of companies, especially in the period of correspondence in which short-contracted terms are made.”
Documents must be approve
“Mostly, are short deals binding or does an emoin have to be signed for it to be binding? We may encounter questions such as: Even without signatures, understanding the terms is sufficient for the parties to make claims against each other. We recommend that this agreement not be binding once the sales contract is signed and approved by the board of directors. If you are working with a lawyer or broker, it is absolutely necessary to send the documents to the seller’s or buyer’s country in advance and get the approval of the documents. You have to send the hardcopy documents. Instead of complicating it, it should be made easier. Typical clauses began to enter such contracts. It is added to the end of the contract as single articles.”
We encounter many problems
“We made commerce a ship in Istanbul. The buyer’s staff boarded the ship, meanwhile, the covid-19 test was performed and it turned out that the staff had Covid-19. It was also made by the seller’s staff while he was out. There’s no way it won’t get them. The seller’s staff also tested positive for Covid-19. They said that the ship’s personnel can leave the ship after the specified number of days. Both the buyer’s and seller’s personnel have no accommodation on board. The seller’s staff was Syrian and staff could only take off in Suez. We contacted Egypt. They said that we can’t take off the staff without getting the clean paper. We faced many problems and we got through it very hard. Therefore, it is necessary to pay close attention to the Covid-19 precautionary clauses in the contract. What we mainly recommend is: It is necessary to inform at least 15 days in advance that there is no crew change at the delivery site.”