NSF 1993 – sellers beware!

Joe McGladdery and Henrik Hagberg, of Wikborg Rein, look at changing regulations in Norway

The Norwegian Saleform Memorandum of Agreement (NSF) is one of the most popular of the pro-forma contracts used for the sale of secondhand vessels and offshore units. It has always been the subject of some speculation as to whether the NSF (both 1987 and 1993 versions) excludes terms as to satisfactory quality and fitness for purpose, which are implied into contracts of sale by the English Sale of Goods Act 1979 (SGA). The recent decision in Dalmare SpA v Union Maritime Ltd and Valor Shipping Ltd (Union Power) has now put this debate to rest as it has been held such terms are to be implied unless expressly excluded.