Newbuilding contracts
1 When does title in the ship pass from the shipbuilder
to the shipowner? Can the parties agree to change when title will
pass?
There are very few, if any, ship building contracts that are
governed by Irish law. Applying Irish contractual law, title of the
ship will pass from the shipbuilder to the shipowner as per the
terms and conditions provided for in the shipbuilding contract. The
contract will generally contain detailed provisions surrounding
payment and title. Although the parties are free to agree to the
title of the ship transferring at any time prior to the delivery of
the ship, such as upon the payment of the first instalment of the
purchase price, it will generally pass on delivery. As a general
rule, the final instalment payment will occur simultaneously upon
delivery.
