Norwegian Saleform 1993 ("NSF 93") currently remains
the wording of choice for parties to most ship sale and purchase
transactions. The recent landmark High Court decision in The
"UNION POWER" [2012] has challenged the perceptions of
some practitioners regarding the application of the Sale of Goods
Act 1979 ("SOGA") implied terms to NSF 93, and is
therefore of great significance to the market.
The facts
The dispute arose following the sale of the 1994 built vessel
"UNION POWER" for US$7 million in 2009. The vessel and
her records had been inspected by the buyers in the usual way, on
18 August 2009, and the buyers' surveyor found nothing of
significance. The parties entered into a Memorandum of Agreement
("MOA ") based on NSF 93, on 4 September 2009, which by
clause 11 stated that the vessel was sold "as she was at
the time of inspection". The vessel was delivered to the
sellers on 1 October 2009, at Tuzla, Turkey. Following drydock
repairs and special survey, the
