Transfer of ownership with unrepaired damage

The seller/the assured and the buyer may agree that the vessel shall be delivered "as is" with the damage unrepaired, in which case the seller and the buyer will usually have agreed a reduction of the purchase price. Such reduction may not only reflect the repair costs, but also the buyer's loss of earnings during the repair period. Prior to 2003, the latter portion of the reduction of the purchase price was recoverable from the loss of hire insurer pursuant to the previous sub-clause 2 of Cl. 16-15 but with effect from 2003, this provision was deleted. This was because such delayed repairs normally would be carried out at the buyer’s convenience so that he will in reality not suffer any loss of hire and consequently not claim any reduction of the price on account of future loss of income during the postponed repairs.