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Boat Building Contract

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A Boat Building Contract is entered into once a builder takes an order to build a boat.  The agreement is needed to protect the builder, and the builder's customer.  This Boat Building Contract sets forth all the relevant terms for the completion of a boat, including cost, payment, time-scales, delivery, and warranty. User's specific terms can be easily inserted into this contract, in order to ensure a tailored result. This form should be used by a boat builder or any party desiring to hire another to build a boat.

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									A Boat Building Contract is entered into once a builder takes an order to build a boat.
The agreement is needed to protect the builder, and the builder's customer. This Boat
Building Contract sets forth all the relevant terms for the completion of a boat, including
cost, payment, time-scales, delivery, and warranty. User's specific terms can be easily
inserted into this contract, in order to ensure a tailored result. This form should be used
by a boat builder or any party desiring to hire another to build a boat.
                                     Boat Building Contract



AGREEMENT made on _______________ [Instructions: insert date], between
____________________ [Instructions: insert name of Builder] (the "Builder"), with its
principal place of business at ____________________ [Instructions: insert address], and
____________________ [Instructions: insert name of Purchaser] of ____________________
[Instructions: insert residence or location of business] ("Purchaser").

1.   Description. Builder shall construct for and deliver to Purchaser a ____________________
     [Instructions: insert description of boat] (“Boat”). Builder will construct the Boat in
     accordance with the specifications set forth in Exhibit “A” to this agreement.


2.   Responsibilities of the Builder. Builder shall be responsible for inclusion of the spar for the
     mainsail, the sails, the fittings, lines, and any marine hardware, navigation equipment,
     electronics and ______________ [Instructions: insert any additional responsibilities of
     the Builder]

[Comment: user should edit the preceding language to reflect the agreement of the parties]

3.   Payments. Purchaser shall pay to Builder the sum of $____________________
     [Instructions: insert total amount of payment] as follows:
     A. Upon the signing of this agreement, $____________________ [Instructions: insert
         amount];
     B. Upon completion of the hull and deck molds, $____________________ [Instructions:
         insert amount];
     C. Upon notification to Purchaser that the Boat is seaworthy, $____________________
         [Instructions: insert amount]; and
     D. Upon delivery to Purchaser, $____________________ [Instructions: insert amount].

        Builder shall give prompt notice to Purchaser on the happening of the above events.
        Purchaser shall have _____ [thirty (30)] [Comment: This number is not provided for
        by law, but can be any number the user chooses] days from the date of each
        respective notice to tender the appropriate payment.


4.   Interest. If Purchaser has not tendered payment by the _____ [thirtieth (30th)] [Comment:
     This number is not provided for by law, but can be any number the user chooses] day
     after notice, Builder may charge Purchaser interest on the then due amount from the day
     after the notice until such payment is received at a rate of _____% [ten (10)] [Comment:
     This number is not provided for by law, but can be any number the user chooses] per
     annum. Builder's right to charge such interest is not in lieu of any other right Builder may
     have against Purchaser for breach of this agreement.
5.   Modification to specifications. Any modification to the annexed specifications shall be
     confirmed in writing signed by both parties and any additional costs shall be borne by
     Purchaser.


6.   Escalator clause. In the event of any rise in the cost of labor or materials between the date of
     signing of this agreement and the completion of the Boat, Builder may make an appropriate
     increase in the total sum specified in paragraph 3, such increase to be payable ratably over
     the then remaining installments. Builder shall furnish to Purchaser for his inspection
     invoices, records, ledgers, or any other materials upon request that would substantiate a rise
     in costs in the event of an increase in price under the terms of this paragraph.


7.   Delivery date. Builder shall deliver the subject Boat, completed in accordance with the
     annexed specification to Purchaser by the last day of _______________ [Instructions:
     insert date], but in the event of completion being delayed through amendments or additions
     to the specification or any cause beyond Builder's exclusive control, the above delivery date
     shall be reasonably deferred.


8.   Unreasonable delay. If Builder shall fail to proceed with reasonable dispatch with the
     construction of the Boat without reasonable cause and it is apparent to Purchaser, that the
     Boat will not be completed and delivered on the agreed date, Purchaser may:
     A. Remove the Boat and any materials that have been purchased for the construction of the
        Boat, provided that Purchaser's payments to Builder are equivalent to the value of the
        goods taken; or
     B. If the Boat is at such a stage of construction that it would be impracticable to remove it,
        Purchaser may remove it by employing his own laborers and materials to progress the
        construction of the Boat to such a stage so that it is practicable to remove it. Such rights
        shall be without prejudice to any other right Purchaser might have against Builder for
        breach of this contract.


9.   Right of inspection during construction. Purchaser shall have free access to the Boat and to
     the equipment and to the materials to be used in the Boat at any time during the normal
     business hours of Builder's facilities. Purchaser may reject all workmanship, material, or
     equipment which does not meet the specifications. Written notice of any such rejection shall
     be given promptly to Builder.


10. Sea trials. Builder shall notify Purchaser, in writing, not less than _____ [thirty (30)]
    [Comment: This number is not provided for by law, but can be any number the user
    chooses] days before the Boat is ready for power and sea trials, specifying the date the trials
    are to be held. Within seven days after receipt of the notice Purchaser shall have the right to
    propose an alternate trial date, provided that if an alternate is agreed upon by both parties,
    and such date is more than _____ [thirty (30)] [Comment: This number is not provided
    for by law, but can be any number the user chooses] days from the original date set by

© Copyright 2011 Docstoc Inc.                                                                      3
    Builder, Purchaser shall pay to Builder an additional $_____________ [Comment: This
    number is not provided for by law, but can be any number the user chooses] for every
    month or part of a month that the trials are delayed. Any amount that shall become payable
    to Builder under the terms of this paragraph are based on a reasonable estimate of Builder's
    additional costs caused by delay and are not in lieu of any other rights Builder may have
    against                                                                          Purchaser.

    Builder or its representative shall accompany Purchaser on the sea trials which shall last
    from one to eight hours.


11. Acceptance. Builder shall be deemed to have completed the construction of the Boat in
    accordance with the specifications at the conclusion of the sea trials, provided that the
    construction of the Boat is to the reasonable satisfaction of Purchaser. Purchaser shall affix
    his signature to the memorandum attached to this agreement on that date to signify
    satisfaction with the construction of the Boat.


12. Risk of loss or damage. The Boat and its propulsion systems and anything attached to the
    Boat, or intended for the Boat, though not Builder's property, but in his possession, shall be
    insured against loss and damage by Builder. If the Boat, engines, or equipment sustain
    damage at any time before delivery to Purchaser any moneys received in respect of the
    insurance shall be applied to repairing the damage or loss during working hours in a
    reasonable and workmanlike manner. Purchaser shall not, on account of any damage or
    repair, be entitled to reject, or make any objection to the boat until all repairs are completed.
    At the time of delivery of the Boat to Purchaser all liability of Builder under this paragraph
    shall cease.


13. Impossibility of performance and termination. Should the Boat, from any cause, become a
    total loss, or Builder's yard, premises, plant, machinery, or equipment be seriously damaged
    by any cause whatsoever, Builder may, in its discretion elect to refund to Purchaser the
    installments, if any, received by Builder. If the installments are refunded under the terms of
    this paragraph this contract will be deemed terminated in all respects as if it had been duly
    completed and Purchaser shall have no further right or claim against Builder hereunder. If
    any or all of the materials, engines, or equipment built into the Boat or appropriated to the
    contract are seriously damaged for any reason, the delivery date shall be reasonably deferred
    for such time as is necessary for Builder to reinstate the work and to purchase and obtain
    delivery of materials, engines, or equipment in substitution for those damaged. Purchaser
    shall have no claim against Builder for any loss or damage incurred by him as a result of any
    delay under the terms of this paragraph.


14. Delay caused by builder; purchaser's elections. If for any other delay not stated above, or if it
    is determined that any delay is Builder's fault, Purchaser, at his option, may elect to have
    Builder refund all installments previously paid and consider the contract terminated, or
    continue as if no delay had occurred, provided that any delay under the terms of this

© Copyright 2011 Docstoc Inc.                                                                      4
    paragraph is more than one month after the specified delivery date.


15. Vendor's lien. The Boat and all materials, engines, and equipment attached to the Boat or
    any material in Builder's possession and designated for use on the Boat shall become the
    property of Purchaser upon the payment of the first installment. The Boat and all materials,
    engines, and equipment in Builder's possession shall be subject to a lien in favor of Builder
    as against Purchaser. In the event of any rejection of any materials or equipment by
    Purchaser, title to such goods will revest in Builder.


16. Warranties of vendor. Builder warrants the Boat against defects in workmanship and in the
    hull machinery and other equipment for one year after final delivery of the Boat to
    Purchaser. If any of Builder's work or materials is discovered within ____ [one (1)]
    [Comment: This number is not provided for by law, but can be any number the user
    chooses] year of delivery, Purchaser shall give notice within ____ [ten (10)] [Comment:
    This number is not provided for by law, but can be any number the user chooses] days
    of such discovery. If the discovery is made while the Boat is on passage, notice will be
    posted within ____ [ten (10)] [Comment: This number is not provided for by law, but
    can be any number the user chooses] days of arrival at the next port of call. In such case,
    Builder shall either repair and make good the defective parts or pay to Purchaser a sum not
    greater than the sum Builder would have charged any other person for comparable work at
    its                                                                               premises.

    Builder shall not be liable for failure of any proprietary or other articles or appliances
    installed, but Builder will use his best endeavors to obtain from the manufacturer
    replacement                  and                 compensation                    therefore.

    Builder shall not be liable for detention or other consequential damages for any defects in
    either original or substituted work which shall be discovered after one year from the date of
    final delivery to Purchaser. Builder shall not be responsible for any fault or failure
    consequent to the design of the Boat if any such design is not Builder's work or the work of
    any naval architect that Builder has appointed on its own responsibility.


17. Extension of warranty. If Purchaser is notified of the completion of the Boat after the
    _______________ [Instructions: insert date] in any year, this warranty shall be effective
    for ____ [ten (10)] [Comment: This number is not provided for by law, but can be any
    number the user chooses] months after final delivery to Purchaser.


18. Sales tax. In addition to the installment payments Builder shall collect from Purchaser any
    sales or local taxes which may be payable to the State of _______________ [Instructions:
    insert state] or its subdivisions as a result of this transaction. Purchaser may pay the entire
    tax due at any time before the last installment payment becomes payable or pay the tax to
    Builder in a proportionate amount along with each installment. In either case, Builder shall
    issue a receipt signed by its representative and bearing its corporate seal, for the amount then

© Copyright 2011 Docstoc Inc.                                                                     5
    received in respect of the tax. If, under the terms of this contract, Purchaser rescinds or the
    boat is not to be delivered to him, Builder shall refund all moneys received in respect of the
    sales and local taxes.


19. Complete contract; exclusion of warranties; no oral modification. This agreement comprises
    the entire, complete, final, and fully integrated contract between the parties and no other
    warranties or representations are given or should be implied from the written or oral
    negotiations that preceded this agreement. ANY STATUTORY OR OTHER WARRANTY,
    INCLUDING WARRANTIES OR MERCHANTABILITY OR FITNESS FOR A
    PARTICULAR           PURPOSE,         CONDITION,         DESCRIPTION,         OR      ANY
    REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE STATE, QUALITY, OR
    FITNESS OF THE BOAT ARE HEREBY EXCLUDED. The terms of this contract may
    only     be    changed      by     a    writing    signed     by   the    parties   hereto.

    In witness whereof the parties have executed this agreement on the date first mentioned
    above.




Builder:
by_________________

Purchaser: _________________




Exhibit A
[Comments: insert specifications and drawings for Boat]




© Copyright 2011 Docstoc Inc.                                                                    6

								
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