Subject to "charterers approval" within 24 hours
Subject to "Stem in order" within 2 days
Subject to "my dog not eating my homework"..
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You can have 'subjects' in any kind of negotiation. When I bought a house recently the agreement was 'subject to pest inspection' - withing 3 days. Another popular one is 'subject to finance' - 7 days.
So the key here is that 99 percent of the terms and conditions are agreed and now we are just waiting on the 'subjects' before the deal is confirmed. During the waiting period (on subjects) it is not ok to try and re-negotiate the terms and conditions already agreed. That is frowned upon in just about any negotiation...to be sure!
Hope this helps
VS - "Every day above ground is a good day" - Scarface
Hi VS
ReplyDeleteGood day,
I have a question pertaining to Subjects. Sorry for being late as we are already into a new week & topic. The question is related to " Subject to details "
If main terms are agreed on Sub to Details, will it be legally considered as a contract? Or it becomes a contract only after both parties reach an agreement of Details (Rider Clauses)?
What if after agreeing on main terms, the parties could not reach an agreement of Details?
Plsd to hear
With Rgds
Varun
Hi Varun
ReplyDelete99 percent of occassions there is no contract until all subs are lifted!
The final 1 percent is when people kick up a stink and spend thousands using lawyers to try and resurrect a deal.
Rgds
VS
Hi VS
ReplyDeleteThanks your's..But in most of the cases vessel will even start loading before CP is signed, and in some cases the parties are not even bothered to sign CP, and the recap act as the final contract.
Can you please explain?
Varun
I never said anything about a signed cp - I just said a contract is in place when all subjects are lifted.
ReplyDeleteIt is tru that in shipping a contract doesnt necessarily need to be signed to be binding. This has a historical precedent due to the time differences and geographical distances between parties.