Memorandum of agreement

A memorandum of agreement (MOA) is the sale and purchase contract for a secondhand ship, the document that transfers ownership from seller to buyer. The dominant form is the Norwegian Saleform 2012, followed by NIPPONSALE 1999 and BIMCO SHIPSALE 22. It sets the purchase price, the deposit (10 percent under NSF 2012), the inspection terms, the delivery place and range, and the warranty that the ship is free of encumbrances. On delivery the seller hands over the bill of sale and the protocol of delivery and acceptance against the balance of the price. Brokers negotiate the MOA from the recap.