The revision of any standard agreement as internationally recognised and widely used as SALEFORM 93 was not a matter lightly undertaken. The decision to revise SALEFORM 93 was based on feedback from the global ship sale and purchase sector who were asked whether an update was needed and, if so, to what extent the agreement should be revised.
The message from the feedback was very clear – while SALEFORM 93 largely met the current needs of the industry, it would certainly benefit from a modest update to reflect commonly applied amendments and rider clauses.
Of equal importance to those consulted was that the general principles and structure of SALEFORM should be retained. The challenge for BIMCO, working together with copyright holders the Norwegian Shipbrokers’ Association (NSA), was how to make this well-used international sale and purchase contract even better while maintaining all the key elements that the industry has come to rely on.
Over a period of 11 months the NSA/BIMCO drafting team carried out a thorough review of SALEFORM in consultation with the industry. On 10 November 2011, the Documentary Committee approved the new edition, called SALEFORM 2012.
The revision process identified the key clauses most commonly amended in SALEFORM and pinpointed areas where ambiguity in the ‘93 edition had, on occasion, led to misunderstanding and uncertainty. The new edition did bring greater clarity to the agreement as well as amended wording that reflects current commercial practices.
SALEFORM 2012 has now been used for some years, and the industry has accumulated some experience in using the contract. This 1-day seminar will look at key elements of SALEFORM 2012.