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Aircraft Purchase Agreement for the United Kingdom

Aircraft Purchase Agreement Template for United States

An Aircraft Purchase Agreement is a legally binding contract governed by U.S. federal and state laws, including Federal Aviation Administration (FAA) regulations. This agreement documents the terms and conditions for the sale and purchase of an aircraft, including detailed specifications, purchase price, payment terms, delivery conditions, and warranties. It must comply with various regulatory requirements, including FAA registration requirements, transportation codes, and potentially international regulations if the transaction crosses borders. The agreement typically includes provisions for aircraft inspection, acceptance criteria, title transfer, and closing procedures.

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What is a Aircraft Purchase Agreement?

The Aircraft Purchase Agreement serves as the primary document governing the sale and transfer of aircraft ownership in the United States. This comprehensive agreement is essential for both new and used aircraft transactions, ensuring compliance with FAA regulations, federal transportation codes, and state laws. It protects both buyer and seller by clearly defining the terms of sale, including aircraft specifications, purchase price, payment terms, inspection rights, and warranties. The agreement must address various regulatory requirements specific to aviation transactions, including proper registration, airworthiness certificates, and title transfer procedures. Given the complex nature of aircraft transactions and the significant financial investment involved, this agreement typically requires careful consideration of technical, legal, and financial aspects, often involving multiple stakeholders including financial institutions, escrow agents, and aircraft inspectors.

What sections should be included in a Aircraft Purchase Agreement?

1. Parties: Identification of buyer and seller with full legal names and addresses

2. Background/Recitals: Context of the transaction and basic information about the aircraft

3. Definitions: Key terms used throughout the agreement including technical, legal, and regulatory definitions

4. Aircraft Description: Detailed specifications of the aircraft, including registration number, manufacturer, model, and serial numbers

5. Purchase Price and Payment Terms: Price, payment schedule, method of payment, and any escrow arrangements

6. Conditions Precedent: Requirements that must be met before closing, including regulatory approvals and inspections

7. Inspection and Acceptance: Terms for pre-purchase inspection and acceptance criteria

8. Title and Registration: Provisions for clear title transfer and registration requirements under FAA regulations

9. Representations and Warranties: Statements of fact and promises by both parties regarding the aircraft and transaction

10. Closing Procedures: Process and requirements for completing the transaction

What sections are optional to include in a Aircraft Purchase Agreement?

1. Financing Provisions: Terms related to external financing and security interests

2. Export/Import Provisions: Requirements for international transfer and customs compliance

3. Escrow Arrangements: Terms for handling funds and documents through escrow services

4. Maintenance and Records Transfer: Specific requirements for maintenance status and records transfer

5. Training Provisions: Terms for pilot or maintenance training services

What schedules should be included in a Aircraft Purchase Agreement?

1. Schedule A - Aircraft Specifications: Detailed technical specifications of the aircraft

2. Schedule B - Equipment List: Inventory of included equipment and accessories

3. Schedule C - Maintenance Records: List of maintenance history and required documentation

4. Schedule D - Delivery Condition Requirements: Specific conditions the aircraft must meet at delivery

5. Schedule E - Form of Bill of Sale: Template for the FAA Bill of Sale

6. Schedule F - Certificate of Insurance: Proof of required insurance coverage

7. Schedule G - Pre-Purchase Inspection Protocol: Detailed inspection requirements and procedures

8. Schedule H - Payment Schedule: Detailed breakdown of payment terms and timelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses
































Industries

Federal Aviation Regulations (FARs): Primary federal regulations governing aviation in the US, including FAA requirements for aircraft registration, Title 14 of the Code of Federal Regulations (CFR), and requirements for airworthiness certificates

Transportation Code: Federal regulations (49 U.S.C. ยง 44101-44112) covering registration requirements and procedures for bill of sale and title transfer in aircraft transactions

Securities Laws: Including Securities Act of 1933 and Securities Exchange Act of 1934, particularly relevant if the transaction involves aircraft-backed securities

Uniform Commercial Code (UCC): State-adopted uniform law governing commercial transactions, particularly Article 2 (Sale of Goods) and Article 9 (Secured Transactions)

Cape Town Convention and Aircraft Protocol: International treaty governing security interests in mobile equipment, including requirements for registration in the International Registry

Tax Laws: Federal, state, and local tax implications, including sales tax requirements and depreciation rules for aircraft purchases

Export/Import Regulations: Including Export Administration Regulations (EAR), International Traffic in Arms Regulations (ITAR), and customs requirements for international transactions

Environmental Regulations: EPA requirements and noise and emissions standards applicable to aircraft operations

State-Specific Laws: Various state-level requirements including registration, tax laws, and commercial codes that may affect the transaction

Anti-Money Laundering Laws: Including Bank Secrecy Act and USA PATRIOT Act requirements for large financial transactions

Consumer Protection Laws: Including Truth in Lending Act and Consumer Leasing Act, if applicable to the transaction type

Insurance Requirements: Mandatory coverage requirements and liability considerations for aircraft ownership and operation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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