The Risks And Precautions Of The Sellers In Sales And Purchase Of Ships

The shipping industry in China is developing so fast, which benefits from the strong revival of the economic. More and more china enterprises began to running the shipping business, and generally, they not only operate charter parties, but also engage in sales and purchases of ships. However, the business of sale and purchase ships is quite different with the ordinary cargo carriage, in particular, the relevant rules on technique and international trading customs. Meanwhile, since there is no long history of the market of sales and purchases of ships in China, there are no many juridical practices in this respect. Furthermore, the standard form for sales and purchases of ships is usually governed by English law which is classified as Anglo-American law system, but Chinese law belongs to Romano-Germanic family. Since there is no particular stipulation on sales and purchases of ships, it should be generally governed by the relevant of the General Rules for Civil Law, Contract Law. The difference between the two law system will give rise to the dispute on construction on the contract of sales and purchases of ships, which will effect the position of the parties under the contract.In the traditional view, the seller is in a more favorable position than the buyer in the sales and purchases of ships, because the seller is aware of more information on the ships than the buyer. Therefore, the risks faced by the buyers were paid much attention in general discussion. In fact, the sellers have more potential liability than the buyer under the contract, and the risks exposed to him should not be ignored. Moreover, more and more Chinese enterprises entered into a sales and purchase contract of ships as the sellers. For the purpose of protecting the interest of Chinese party, it is quite necessary to make a detailed study on risks exposed to the sellers.Whereas, in this article, the writer will analyze the risks facing by the sellers under the standard form NSF, through discussion of the precedent in English law and the provisions in Chinese law and put forward the advice for prevention of the risks. This article intends to make up the blank in this theoretical aspect and provide resolution in practice。...