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1 Yacht-Building Contracts 1

Introduction 1

The nature of a contract for the construction of a yacht 2

Common terms and conditions of sale 11

2 Yacht Registration 19

Historical introduction 19

The modern law 24

Registration under Part Ⅰ of the Register 25

Registration as a small ship on Part Ⅲ of the Register 33

The entitlement to fly the British flag 35

Commercial use of yachts and choice of registry 36

3 Value Added Tax and Yachts 39

Introduction 39

VAT and the European Union 40

Commercial yachts and VAT 44

Zero rating 52

Special purpose vehicles and ownership structures 62

Importing superyachts into the EU 68

Place of supply 73

Other relevant transactions 78

Other taxes 80

4 Yacht Finance 83

Finance leases and their structure 83

Mortgages 87

Default and enforcement 99

5 Insurance Legislation and Contracts 105

Non-disclosure and misrepresentation 106

The insurance schedule 111

The Institute Yacht Clauses 115

Third-party liabilities and P＆I cover 128

6 Employment and Manning 129

Introduction 129

Crew agreements 131

Employment law and UK employment tribunal jurisdiction 133

Manning of yachts 137

Certification and training 139

Maritime Labour Convention 2006 142

7 Yacht-Brokers 151

Yacht-broker associations and central agency agreements 151

The role of brokers 153

The authority of the broker 156

The basic duties of the broker 159

The fiduciary duties of the broker 160

The broker as stakeholder 164

The remuneration of the broker 165

8 Yacht Chartering and the MYBA Form 171

Introduction 171

The MYBA Charter 172

9 Mooring 215

Introduction 215

Marinas 218

Rights and liabilities 224

10 Sale and Purchase under the MYBA Form 229

Introduction 229

Seller's rights and obligations 230

Buyer's rights and obligations 238

Final provisions 248

11 LY2: Safety and Compliance for Superyachts 253

The LY2 253

The SOLAS Convention 255

The ISM Code 256

The ISPS Code 259

The STCW95 260

Compliance and classification societies 261

12 Accidents at Sea 265

Introduction 265

Collisions 266

Salvage 272

Limitation of liability 280

Passenger claims 289

Bunker oil pollution 298

Wreck removal 301

13 The Recycling of Yachts 307

The international and European legal framework 308

Ships, yachts and the Basel system 309

The Basel Convention and yachts 310

Yachts and the Ship Recycling Convention 313

Contracts for the recycling of yachts 324

Appendices 331

Ⅰ Merchant Shipping Act 1995, extracts 331

Ⅱ Merchant Shipping (Registration of Ships) Regulations 1993, extracts 341

Ⅲ VAT 375

(a) Value Added Tax Act 1994, Schedule 8 (Group 8—Transport), extracts 375

(b) Directive 2006/112/EC, extracts 377

(c) List of Member States of the European Union as at 31 March 2012 380

(d) The European Union Directives relevant to the operation of VAT 382

(e) Summary of the Italian flat rate reduction of the taxable basis under Administrative Ruling No.49/2002 as confirmed by Administrative Ruling No.43/2011 384

Ⅳ Large Commercial Yacht Code (LY2), extracts 385

(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 yachts 391

Ⅵ The MYBA Memorandum of Agreement and draft Addendum One 419

Ⅶ The MYBA Charter Agreement 431

Ⅷ The Institute Yacht Clauses 439

Ⅸ International (Ready for Recycling) Certificate and Yacht Green Passport 449

(a) International (Ready for Recycling) Certificate 449

(b) Yacht Green Passport 452

Ⅹ The List of Special Ensign yacht clubs 467

Index 471