SELLING SHIPS

New Zealand Times, Volume LI, Issue 12021, 26 December 1924, Page 2

SELLING SHIPS

SUBJECT TO- INSPECTION. Practically all steamers are sold today subject to approval on inspection, and naturally advantage is sometimes taken of this option to throw up the vessels if, in the opinion of the prospective buyer, the market value hag fallen between the signing of the contract and tho date .of inspection., or if, in his. view, a lower price will be accepted. Two instances of contracts not having been carried out aa opginally arranged occurred recently. A steamer was sold for <£IS,CGU subject to inspection, and on inspection the foreign buyer declined the boat, bat' offered to take her at .-912,500. which was refused Quito a number of offers wer® afterwards made, until «£U,500 was reached. which the owner accepted. Another foreign owner was not so fortunate. He purchased a 'steamer for ,£35.000. and. after inspection, as certain repairs, etc.. were, in his opinion, necessary, he asked the owner if he would allow <£(2oo toi them. This was at once agreed to, whereupon the foreign buyer apparently thought that further reductions or allowancee might be secured, and them. The owner thereupon withdrew theboat, but this action did not suit the foreign buyer, who told him that, therr being a contract to purchase, ho inns' either carry out.his nart of the bargoir or pnv damages. Although the posuinr was fully explained, the prospective buyer still contended that he could u ke the boat, and, when this was refused, he claimed <£ICCO damages, which turn included the commission which he was? eoinjff to make mjt of the bargain fur himsolf. The dispute was referred to arbitration, and, as might be expected in the* circumstances, the award was given tn favour of the owner. In times like the when desirable boats nt a. low price are sometimes difficult to obtain, nnd probably others are after them, it Is risky for buyers to decline such vessels, unless for a valid reason. Many years aero a boat was sold subject to inspection. nnd the purchaser thought he coniri nquce*e the owner, who, he believed, was bound to soil, and lhat he was the only buyer in the market. IT* declined the vessel on inspection. a«d then offered, a lower price, only to be informed that tho boat we 9 sold elsewhere. In order to secure the steamer, he had to pay Ihe purchaser a profit on his contract.