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1 Yacht-Building Contracts1

Introduction1

The nature of a contract for the construction of a yacht2

Common terms and conditions of sale11

2 Yacht Registration19

Historical introduction19

The modern law24

Registration under Part Ⅰ of the Register25

Registration as a small ship on Part Ⅲ of the Register33

The entitlement to fly the British flag35

Commercial use of yachts and choice of registry36

3 Value Added Tax and Yachts39

Introduction39

VAT and the European Union40

Commercial yachts and VAT44

Zero rating52

Special purpose vehicles and ownership structures62

Importing superyachts into the EU68

Place of supply73

Other relevant transactions78

Other taxes80

4 Yacht Finance83

Finance leases and their structure83

Mortgages87

Default and enforcement99

5 Insurance Legislation and Contracts105

Non-disclosure and misrepresentation106

The insurance schedule111

The Institute Yacht Clauses115

Third-party liabilities and P＆I cover128

6 Employment and Manning129

Introduction129

Crew agreements131

Employment law and UK employment tribunal jurisdiction133

Manning of yachts137

Certification and training139

Maritime Labour Convention 2006142

7 Yacht-Brokers151

Yacht-broker associations and central agency agreements151

The role of brokers153

The authority of the broker156

The basic duties of the broker159

The fiduciary duties of the broker160

The broker as stakeholder164

The remuneration of the broker165

8 Yacht Chartering and the MYBA Form171

Introduction171

The MYBA Charter172

9 Mooring215

Introduction215

Marinas218

Rights and liabilities224

10 Sale and Purchase under the MYBA Form229

Introduction229

Seller's rights and obligations230

Buyer's rights and obligations238

Final provisions248

11 LY2: Safety and Compliance for Superyachts253

The LY2253

The SOLAS Convention255

The ISM Code256

The ISPS Code259

The STCW95260

Compliance and classification societies261

12 Accidents at Sea265

Introduction265

Collisions266

Salvage272

Limitation of liability280

Passenger claims289

Bunker oil pollution298

Wreck removal301

13 The Recycling of Yachts307

The international and European legal framework308

Ships, yachts and the Basel system309

The Basel Convention and yachts310

Yachts and the Ship Recycling Convention313

Contracts for the recycling of yachts324

Appendices331

Ⅰ Merchant Shipping Act 1995, extracts331

Ⅱ Merchant Shipping (Registration of Ships) Regulations 1993, extracts341

Ⅲ VAT375

(a) Value Added Tax Act 1994, Schedule 8 (Group 8—Transport), extracts375

(b) Directive 2006/112/EC, extracts377

(c) List of Member States of the European Union as at 31 March 2012380

(d) The European Union Directives relevant to the operation of VAT382

(e) Summary of the Italian flat rate reduction of the taxable basis under Administrative Ruling No.49/2002 as confirmed by Administrative Ruling No.43/2011384

Ⅳ Large Commercial Yacht Code (LY2), extracts385

(a) Manning Scale for Motor Yachts (Paragraph 26.2.8 )385

(b) Manning Scale for Sailing Yachts (Paragraph 26.2.9)386

(c) List of Certificates to be issued to UK ships, applicable UK Regulations and extent of Delegation (Annex 5, Table 1)387

Ⅴ Specimen Loan Facility Agreement for motor or sailing yachts391

Ⅵ The MYBA Memorandum of Agreement and draft Addendum One419

Ⅶ The MYBA Charter Agreement431

Ⅷ The Institute Yacht Clauses439

Ⅸ International (Ready for Recycling) Certificate and Yacht Green Passport449

(a) International (Ready for Recycling) Certificate449

(b) Yacht Green Passport452

Ⅹ The List of Special Ensign yacht clubs467

Index471