Ship Construction and Delivery Contract

SHIPBUILDING AND DELIVERY CONTRACT

PARTIES
On one side …………………………… (hereinafter “Shipyard” ),
On the other side …………………………… (hereinafter “Buyer” ).

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ARTICLE 1 – SUBJECT OF THE AGREEMENT

This contract concerns the construction by the shipyard of a vessel of type …………, gross tonnage of …………, engine power of ………… and equipped with ………… specifications for the Buyer, and its delivery to the Buyer under the terms specified in this contract.

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ARTICLE 2 – DELIVERY DATE AND PLACE

2.1. The vessel will be completed on ………… date and delivered to the Buyer at ………… port.
2.2. In the event of a delay in delivery, except for force majeure, the Shipyard agrees to pay a delay penalty of ………… for each day of delay.

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ARTICLE 3 – TECHNICAL SPECIFICATIONS

3.1. The technical specifications and standards to be applied in the construction of the vessel are detailed in the Technical Specifications , which are an annex to this contract . 3.2. The Buyer has the right to carry out necessary checks and inspections throughout the construction process. 3.3. The vessel must possess certificates approved by national and international classification societies.

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ARTICLE 4 – PRICE AND PAYMENT PLAN

4.1. The total cost of constructing the ship is ………… USD/EUR.
4.2. The payment schedule is as follows:

• 20% advance payment upon contract signing

• 30% completion of the fuselage,

• When 30% of the hardware and engine assembly is complete,

• 20% on delivery date.
  4.3. In case of payment delays, a late payment interest of ………… will be applied.

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ARTICLE 5 – WARRANTIES AND RESPONSIBILITIES

5.1. The shipyard is responsible for any manufacturing and assembly defects that may occur on board the vessel for a period of ………… years from the date of delivery.
5.2. The buyer is responsible for operating the vessel in accordance with its intended purpose.
5.3. Defects covered under the warranty will be repaired free of charge by the shipyard.

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ARTICLE 6 – INSURANCE AND RISKS

6.1. During construction, the vessel will be insured by the shipyard under "Builder's Risk" insurance.
6.2. After delivery, the risks will transfer to the Buyer.

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ARTICLE 7 – TERMINATION

7.1. If either party fails to fulfill its obligations, the other party may terminate the contract by giving written notice.
7.2. In case of termination, the amount paid will be refunded after deducting the actual manufacturing costs.

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ARTICLE 8 – RESOLUTION OF DISPUTES

In case of disputes arising from this agreement , the provisions of the Turkish Commercial Code and the Maritime Commercial Code shall apply.
The Istanbul Maritime Specialized Courts and the Istanbul Arbitration Center (ISTAC) shall have jurisdiction in resolving disputes.

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SHIPYARD       BUYER
Name – Signature Name – Signature

                                              YAĞMUR YORULMAZ, LAW FACULTY STUDENT