Aviation Purchase Agreement

Negotiating a contract to sell a business jet should not be a contentious matter. If the parties are reasonable and try to stay close to industrial standards, the conditions can generally be concluded with little difficulty. But if one or both parties make unrealistic demands, negotiations can marvel and end up imploding with all disgruntled people, except perhaps lawyers who charge an hourly fee. But “as-is, where-is” is a misleading expression. If a closet for sale in an antique store has a sign with the inscription “as it is,” it means: “What you see is what you get; it has problems that cannot be solved, and even if they are, we do not solve them.┬áBut unless you buy a “wholesale” jet, the sales contract should consider that the seller will provide an aircraft capable of flying, as advertised equipped and with everything that works properly. It is only at closing that the buyer accepts the aircraft “as it should be”, subject to a guarantee of ownership of the seller. The heart and soul of the sales contract are the terms of delivery. Brokers sometimes argue that the agreement should just require that the aircraft be delivered in “flight condition,” and while the sales contract should certainly stipulate that, much more is needed to provide adequate protection to the buyer. (b) The performance, supply and delivery of the contract by the seller has been duly authorized by all necessary measures on behalf of the seller and is not in contradiction with a violation of any of the conditions or resulting in a delay in a document, instrument or agreement involving the seller. Once the ACT has been signed and a deposit has been funded, it is time to design a sales contract. Who would do that? If you buy a new aircraft (and in some cases even a used aircraft) from a manufacturer, don`t think for a moment that there is a chance to design the contract; The manufacturer will present a draft contract in its standard form. However, in other cases, the party entitled to submit the first draft is being negotiated. (g) The seller agrees to compensate the buyer for and against any claim by a broker or other party that asserts an interest in the aircraft or the purchase price resulting from a real or alleged or contractual relationship or agreement with the seller.

(c) After proper and timely positioning of the aircraft at the delivery site and the execution of all commitments and agreements of the seller, the buyer must file the purchase price with Exeter 1031 Exchange Services, LLC, the qualified intermediary designated by the seller, by electronic transfer, and (ii) the seller and buyer will immediately notify the agent: (a) date and deposit of the FAA sale invoice in the civil registry ( b) the date and filing of the registration application for the aircraft and (c) the release of the warranty sales account to the buyer.