Cruisers Forum

Join CruisersForum Today

Thread Tools Rate Thread Display Modes
Old 09-07-2008, 23:10   #1
Registered User

Join Date: Jan 2007
Location: santa cruz (moss landing), ca
Boat: Hardin Seawolf 41
Posts: 62
Non-equity partnership contracts

Hey, not sure where to post this, but I am starting a non-equity partnership with someone and was looking for a legal contract floating around out there... Something to the effect that if he crashes the boat without me, that he is liable for its damage (to other boats included) and repair. Anyone out there have exp with partnerships and words of advice and maybe a contract that I could use?


swami maximus is offline   Reply With Quote
Old 10-07-2008, 00:30   #2
Moderator Emeritus
Ex-Calif's Avatar

Cruisers Forum Supporter

Join Date: May 2007
Location: Singapore
Boat: Maxi 77 - Relax Lah!
Posts: 11,514
Images: 4
I don't have one but I am not sure one can get boat insurance on a boat one does not own. Will he self insure or will his homeowner or other umbrella policy cover non-owned boats?

Relax Lah! is For Sale <--- Click
Click--> Custom CF Google Search or CF Rules
You're gonna need a bigger boat... - Martin Brody
Ex-Calif is offline   Reply With Quote
Old 10-07-2008, 00:50   #3
Registered User
boris's Avatar

Join Date: Sep 2007
Boat: warwick 44
Posts: 101
the insurance aspect is ezy. He pays you $1 for a share (if the boat is worth $10,000 he owns 1/10 000 of the boat) and so he is a legal owner and able to obtan insurance
boris is offline   Reply With Quote
Old 10-07-2008, 05:31   #4
Registered User
svHyLyte's Avatar

Join Date: Mar 2006
Location: Tampa Bay area, USA
Boat: Beneteau First 42
Posts: 2,978
Images: 25
A what?

A "Non-Equity Partnership" is somewhat a non sequitar. For all intents and purposes you are describing a private charter arrangement for which there are many contract formats. In re: insurance, consider contacting Al or Gary Golden at International Marine Insurance Services ("IMIS") to discuss approporiate coverages. Liability coverage--for you in this case--would be wise as "hold harmless" provisions in such agreements are easily defeated.


"It is not so much for its beauty that the Sea makes a claim upon men's hearts, as for that subtle something, that quality of air, that emanation from the waves, that so wonderfully renews a weary spirit."
svHyLyte is offline   Reply With Quote
Old 10-07-2008, 05:53   #5
Eternal Member
imagine2frolic's Avatar

Join Date: Feb 2008
Location: Las Brisas Panama AGAIN!
Boat: Simpson, Catamaran, 46ft. IMAGINE
Posts: 4,508
Images: 123
Sounds like you are opening a can of worms!
imagine2frolic is offline   Reply With Quote
Old 10-07-2008, 06:40   #6
Moderator Emeritus
Pblais's Avatar

Join Date: Mar 2003
Location: Hayes, VA
Boat: Gozzard 36
Posts: 8,700
Images: 15
Send a message via Skype™ to Pblais
I would agree with HyLlyte.

The nut of it all will be an insurance policy that covers both of you. As the equity owner many places will go after you in the event anything goes bad of any nature. They won't even care about the partner. That means after they get done with you then you have to go after your partner. That won't go well or easy. You pay twice.

The process of assigning liability to the non equity partner is the legal hassle you'll need a lot of expert legal advice on. Internet legal advice won't make it for this agreement. The partner really faces the easy part of this deal since they have almost no downside. You however gain double the liability in exchange for a fixed amount of money.

When the equity is equal you can usually count on the two partners having a similar interest in the boat and while disagreements come up you both are on even ground and will both act in your mutual interest because you really are forced to. This deal does not even being to start like that. Relationships don't usually get better when they don't start out even.
Paul Blais
s/v Bright Eyes Gozzard 36
37 15.7 N 76 28.9 W
Pblais is offline   Reply With Quote
Old 10-07-2008, 11:07   #7

Cruisers Forum Supporter

Join Date: Apr 2006
Posts: 12,077
Without the details, I'd also agree it sounds like you are in for potential problems. Liability, insurance, commercial use...

Better to see an inexpensive storefront lawyer who can enlighten you both on the issues and options and call it a cheap $100 educational session. And he might even have some stock forms you can use for the job, once you get a clearer picture of what may be involved.

hellosailor is offline   Reply With Quote


Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trade Equity for Boat? mohave_steve Classifieds Archive 5 23-01-2008 13:58

Our Communities

Our communities encompass many different hobbies and interests, but each one is built on friendly, intelligent membership.

» More about our Communities

Automotive Communities

Our Automotive communities encompass many different makes and models. From U.S. domestics to European Saloons.

» More about our Automotive Communities

Marine Communities

Our Marine websites focus on Cruising and Sailing Vessels, including forums and the largest cruising Wiki project on the web today.

» More about our Marine Communities

Copyright 2002-2015 Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 17:53.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.