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28 Oct 2021

How to walk away – and how not to – under the MYBA Memorandum of Agreement

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The second-hand yacht market is currently very active, with many yachts changing hands. When a yacht is sold, the standard form MYBA Memorandum of Agreement (the "MOA", the key provisions of which are set out at the end of this article) is often used to govern the sale process.

The mechanics of a sale under the MOA can be briefly summarised as follows:

  1. The parties agree a Sale Price (box 6);
  2. The Buyer pays a Deposit (10% of the Sale Price) (box 7 and clause 25);
  3. A date is agreed (the "Trials Date") by which the Seller must have made the vessel available for sea trials and a condition survey (together, the "Trials") (box 9 and clause 26); and
  4. A further date is agreed by which the sale must have completed (the "Completion Date"), following which the Deposit and the balance of the Sale Price are released / paid to the Seller. The MOA states that in relation to the Completion Date "time being of the essence" (box 12 and clause 30).

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