Most LOis allow two to three weeks to design, negotiate and sign an aircraft purchase contract. In order to make the process as fluid as possible, there is no substitute for the maintenance of experienced aviation advisors. 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. But 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. In accordance with this specific contract for the purchase of aircraft (the “agreement”), the date – date and after and between ________In reference to the aircraft mentioned above (the “aircraft”) confirms that the purchaser has completed his inspection of the aircraft on that date. The total purchase price of the aircraft is – This clause defines the manufacturer`s sale agreement and the customer`s consent to purchase the aircraft. Aircraft purchase contracts are often one of the reasons why you don`t want to take the time to negotiate a purchase contract, unless you have a deal. Most OLIs are never signed and never become contracts, as the parties are unable to agree on the purchase price and other important conditions. As a result, the LOI is a delicate phase in negotiations between buyer and seller; the parties try to agree on issues such as the price, the total date of the transaction and whether the buyer must commit to the purchase before concluding his due diligence.
Litigation over tax allowances, the right to a jury trial and the payment of trust costs can wait. CONSIDERING that the seller wishes to sell the aircraft to the buyer (as defined in point 1.1 a) and that the buyer wishes to buy it from the seller under the conditions provided; And if the sellers are late, shouldn`t they face the same consequence and not only pay back the down payment, but pay a break-up fee corresponding to that deposit, especially if they decide to sell the plane to someone else? Although this type of arrangement is becoming more frequent, it is hardly common. Sellers argue that buyers should be satisfied with the repayment of their deposit and that, particularly in a declining market, a seller has generally already suffered a significant loss, as the value of the aircraft is likely to depreciate while the agreement is in progress.