This contract is an agreement between a boat manufacturer and a buyer for the construction and sale of a custom-built boat. It details the boat’s specifications, payment terms, and the process for inspection and delivery. The contract ensures both parties understand and agree to their obligations, from the initial design phase through to the final handover of the boat.
BOAT MANUFACTURING AND SALES AGREEMENT
THIS AGREEMENT is made on [Insert Date],
BETWEEN
- [Manufacturer’s Full Name], a company incorporated and registered in [Insert Country of Incorporation] with company number [Insert Company Number] and having its registered office at [Insert Registered Address] (the “Manufacturer”),
AND
- [Buyer’sName], an invidiual at [Insert Registered Address] (the “Buyer”).
BACKGROUND
This Agreement outlines the commitment of the Manufacturer to incorporate the Buyer’s specific customizations into the boat’s design. This document sets forth the terms for the boat’s construction, payment, and delivery, aiming to fulfill the Buyer’s unique specifications through the Manufacturer’s skilled craftsmanship. It marks a joint venture towards delivering a boat tailored to the Buyer’s expectations.
BOAT AND ENGINE DESCRIPTION AND SPECIFICATIONS
1- The Manufacturer will produce a boat of [Model and Design] model according to the The Manufacturer agrees to produce a boat of [Model and Design] model, according to the Buyer’s customized requests as detailed in [List of Features and Requests].
2- A comprehensive outline of the boat’s manufacturing stages, including estimated timelines, key milestones, and quality assurance protocols, is provided in [Manufacturing Process Details], which is annexed hereto.
3- The targeted completion date for the boat is [Completion Date]. This date is subject to adjustment based on the Manufacturer’s production schedule and any changes requested by the Buyer.
4- The Hull Identification Number (HIN) and detailed engine specifications will be finalized and communicated to the Buyer not later than [X days/weeks] prior to the completion date.
PAYMENT TERMS
5- The total contract price for the boat is set at $[Amount], which includes all The total contract price for the boat is established at $[Amount]. This amount encompasses all manufacturing costs, standard features, and any customizations requested by the Buyer as outlined in the Agreement.
6- Upon the execution of this Agreement, the Buyer is required to make an initial payment of $[Initial Payment Amount]. This payment represents [Specify Percentage, e.g., 30%] of the total contract price and is considered a commitment to the manufacturing process.
7- The remaining balance, amounting to $[Remaining Amount] and constituting [Specify Remaining Percentage, e.g., 70%] of the total contract price, is due upon the completion of the boat. Payment must be made prior to the delivery of the boat.
8- This final payment is contingent upon the Buyer’s satisfactory inspection and acceptance of the boat, in accordance with the inspection.
9- If the Buyer fails to make timely payments as outlined above, the Seller is entitled to charge interest on the overdue amount. This interest will be calculated at a rate of [X%], accruing from the payment due date until the date of actual payment.
10- The Seller reserves the right to cease manufacturing or withhold the delivery of the boat if payment is not received within [Specify Number of Days] after the due date.
11- In the event of a payment default by the Buyer, the Seller will issue a written notice, granting a grace period of [Specify Number of Days] for the Buyer to remedy the default.
DELIVERY AND INSPECTION
12- The Sellers will prepare the Boat for delivery at their premises on the agreed Delivery Date. The Boat will be made available either in the water or on land, as mutually agreed upon with the Purchaser.
13- If the delivery is to be made at a location away from the Sellers’ premises, the delivery method and location will be agreed upon in advance. Any extra costs associated with this alternative delivery, including transportation and handling, will be the responsibility of the Purchaser.
14- The Delivery Date is provided in good faith. The Sellers will make every reasonable effort to meet this date but cannot guarantee it. Delays caused by the addition of extras, modifications to the Boat, or delays in transportation, and other factors reasonably beyond the Sellers’ control, will not render the Sellers liable for any resultant delays.
15- Upon delivery, the Sellers and the Purchaser will jointly sign a Protocol of Delivery and Acceptance. From the moment the Protocol is signed, the responsibility and risk for the Boat and all its gear and equipment will transfer to the Purchaser. The Purchaser is then immediately responsible for insuring the Boat.
16- The Purchaser is obligated to take delivery of the Boat immediately upon signing the Protocol of Delivery and Acceptance. Failure to take delivery without a valid reason may result in the Purchaser being liable for reasonable berthing, storage, insurance, maintenance, and handling charges until the Boat is delivered.
17- The Purchaser and the Sellers agree that the Sellers are not responsible for verifying the Purchaser’s competence and experience in operating and navigating the Boat. The Purchaser acknowledges their responsibility to ensure they possess the necessary skills and knowledge for the Boat’s operation.
18- Before accepting and signing the Protocol of Delivery and Acceptance, the Purchaser has the right to inspect the Boat and conduct a sea trial as outlined in the agreed [Inspection and Sea Trial Procedure]. This inspection and sea trial must be completed satisfactorily before the Purchaser signs the Protocol.
19- The sea trial will be conducted under conditions agreed upon by both parties and will be of sufficient duration to assess the Boat’s performance adequately. The Sellers will cover the cost of fuel and other consumables used during the sea trial.
ADDITIONAL COST AND DELIVERY CHANGES POLICY
20- If the Buyer requests changes to the boat’s features during the manufacturing process, these changes may incur additional costs and affect the delivery date. Such changes must be communicated in writing to the Manufacturer and are subject to the Manufacturer’s approval.
21- The Buyer acknowledges that changes may involve alterations in the boat’s design, materials, or functionality. The Manufacturer will evaluate the feasibility of these changes within the context of the existing design and production schedule.
22- Upon receiving a change request, the Manufacturer will assess the required additional work, parts, or services and calculate the additional costs. The Manufacturer will provide a detailed cost proposal and a revised delivery timeline to the Buyer within 10 business days of receiving the change request.
23- This cost proposal will include an itemized breakdown of the additional costs and an explanation of how the changes will affect the boat’s manufacturing process and delivery timeline.
24- The Buyer shall review the cost proposal and revised delivery timeline. If the Buyer approves the proposed changes, they must provide written consent and agree to the updated terms, including any adjustments to the payment schedule.
25- Upon the Buyer’s approval, a non-refundable deposit of 50% of the estimated additional cost is required to commence the modifications. The balance of the actual cost, as determined upon completion of the modifications, will be payable immediately prior to the delivery of the boat.
26- The Manufacturer reserves the right to decline any modification requests from the Buyer if they significantly disrupt the manufacturing process, compromise the boat’s performance or safety, or cannot be feasibly incorporated within the existing design.
27- In the event of a rejection, the Manufacturer will provide the Buyer with a written explanation, detailing the reasons for declining the requested changes.
28- The Manufacturer will reassess the delivery date based on the accepted modifications. A new estimated delivery date will be provided to the Buyer along with the additional cost proposal.
29- The Buyer must acknowledge and accept the new delivery date as part of the modification approval process. Any delay caused by the incorporation of the Buyer’s requested modifications will be communicated and agreed upon in writing.
30- The Manufacturer will review all change requests in light of production capacity, scheduling, and resource availability. The Manufacturer reserves the right to accept or reject any change requests.
31- The decision, whether to accept or reject a change request, will be communicated to the Buyer within 10 business days of the request. This communication will include justification for the decision, particularly in cases of rejection.
DEFECTS AND LIABILITIES POST-DELIVERY
32- In the event that any defects in the boat become apparent after delivery, the Manufacturer is obliged to repair or replace the defective parts, provided that the defects are reported by the Buyer within [Specify Time Period, e.g., 30 days] of the delivery date.
33- This obligation is limited to defects arising from the manufacturing process and does not cover damages resulting from misuse, lack of maintenance, or normal wear and tear.
34- The Manufacturer will undertake necessary repairs or replacements at their own cost, excluding any transportation costs to and from the repair facility, which shall be the responsibility of the Buyer.
35- The Buyer must notify the Manufacturer in writing of any such defects within the specified time period. The notification must include a detailed description of the issue and, where possible, photographic evidence.
36- The Manufacturer’s liability under this clause is limited to the repair or replacement of defective parts and does not extend to indirect or consequential losses or damages.
37- This clause does not affect the statutory rights of the Buyer under the applicable consumer protection laws.
WARRANTIES AND CONDITIONS
38- The Manufacturer will provide a warranty that is valid from the date of delivery, covering the conditions specified in [Warranty Details].
39- Changes in the Buyer’s customized requests are subject to additional costs and potential changes in the delivery time as stipulated in the agreement.
40- The Buyer has the right to observe the boat’s condition and request reports at predetermined times during the manufacturing process.
41- Any changes in requests by the Buyer will be processed in accordance with the terms specified in the [Additional Cost and Delivery Changes Policy].
GOVERNING LAW AND JURISDICTION
42- This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of [Specify Jurisdiction, e.g., England and Wales].
43- Each Party irrevocably agrees that the courts of [Specify Jurisdiction, e.g., England and Wales] shall have exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this Agreement or its subject matter or formation (including non-contractual disputes or claims).
GENERAL PROVISIONS
44- This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, both written and oral, relating to its subject matter.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
Signatures:
Manufacturer’s Authorized Representative: ___________________________
Date: _______________
Buyer: ___________________________
Date: _______________