Page 14 - October 23

FEATURE
Aircraft Purchase Agreements: Devils Lurk in the Details
by Scott Williams, Esq.
In a perfect world, the seller or buyer of a used aircraft would hire an experienced aviation attorney to draft a purchase agreement. The other side then negotiates modest revisions and everyone signs. That perfect world rarely exists. I’m frequently asked by fellow owners to review purchase or sales contracts drafted by others, and I’m still amazed by some of the dangerous language I find. Equally important is what is often missing in a purchase agreement to protect the parties from a financially painful experience.
Sellers: Limit Your Liability
Sellers have two simple objectives when selling an airplane: 1) Get the money, and 2) Never hear from the buyer again. Or dare I include subsequent buyer(s)? To help avoid any lingering liability, every seller should have this essential (or very similar) language in every sales contract:
12 • KING AIR MAGAZINE
“Except as provided otherwise in this agreement, this Aircraft is sold ‘as is.’ There are no warranties, either express or implied, with respect to merchantability or fitness for a particular purpose applicable to the Aircraft or any installed equipment.”
Further, to ensure there are no inferences that the seller was supposed to explain any part of the aircraft or its systems to the buyer, also add:
OCTOBER 2023