Basic Aircraft Purchase Agreement

1.1 (a) Subject to the provisions of this Agreement, Seller agrees to sell Buyer and deliver Buyer, and Buyer agrees: all rights, title and interest of Seller in and to such ___________________________________________N__________________________ determined with two __ are generally limited to keeping all or part of the deposits paid, a practice that is also relegated to second-hand contracts. Deposits in used jets range from $100,000 to over a million dollars, which provides a strong incentive for buyers to close the deal as soon as they are required to do so. The negotiation of a business jet sales contract need not be a contentious issue. If the parties are reasonable and try to stay close to industry standards, the terms can usually be concluded with little difficulty. But if either party makes unrealistic demands, negotiations can drag on and eventually implode, with everyone being unhappy, except perhaps lawyers who accuse on time. On the other hand, buyers should understand an important issue of the sales contract: the seller`s wish not to have any other obligations on the plane after the conclusion. The norm in business jet deals is that planes are sold ”like looking where they are,” a point where sellers` lawyers sometimes go to great lengths to knock on the house. [See ”When Boilerplate Boils Over”, BJT Buyers` Guide 2017. – ed.] The heart and soul of the sales contract are the terms of delivery. Brokers sometimes claim that the agreement only has to require the aircraft to be delivered in a ”fit to fly” condition, and while the sales contract should certainly provide for this, much more is needed to provide adequate protection to the buyer.

However, both parties should agree on a deal: don`t start with an agreement provided by a broker, which often requires a complete rewrite on both sides. The same goes for agreements made by lawyers who lack expertise in business aviation. Experienced lawyers in aeronautics do not only understand the issues that need to be addressed in the treaty; They also know how these problems are usually solved. The most painful sales contract negotiations involve, without exception, a lawyer with little experience in aviation who demands inappropriate or out-of-bounds things, such as refusing to allow buyers` representatives on the ”test flight” or waiting for the seller to pay for pre-emption. . . .