The guide to Superyacht law - Fourth edition

BROKERAGE A good broker is your best asset. A poor broker waits for their commission to come in. Whether the aim is to build a new superyacht, sell or buy a pre-owned superyacht or secure charters, it is customary in the industry for parties to be introduced by a superyacht broker. However, this is not necessary. Transparency is a must. Watch out not only for the UK Bribery Act, but also bribery and corruption legislation across many countries. Who pays the broker? • The seller in sale and purchase, the builder in new construction, and the owner on charter agreements Can the broker negotiate the contract? • Yes, if acting as an agent and English law applies. The principal would be bound by the terms agreed. If the applicable law is not clear, the rules regarding agency may become a complicated matter. Check the implications with a local lawyer and get the terms of the agreement in writing Do I need to pay commission? • The role and the entitlement of brokers is clear when MYBA forms are used. If these are not used, address the issue and put it in writing otherwise you will be at the mercy of the law applicable to where the relationship was formed. In essence, a broker will be entitled to a commission if they are the effective cause of the sale • There is a recent case involving commission payments, either wrongly claimed or wrongly avoided. For example, in a recent case, the broker was denied commission as his involvement was too peripheral to be deemed an effective cause of the eventual sale

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