D2 Boat Share Agreement: Small Boat Model

A group that wishes to share a larger boat should see the large boat share agreement

This agreement is suitable for use where more than one of the proposed sharers will own a share in the boat, or are planning to each own a share in the boat. To achieve this, the potential sharers could purchase a boat together, or they could buy shares in a boat already owned by one of the sharers. If required, this agreement can cater for some of the sharers not to be owners of the boat, providing that they will pay a share of the running costs and not simply a standard rate based on the time or engine hours used.

This agreement is very comprehensive and, amongst other issues, deals with the following:

• The ownership of the boat and any accessories or equipment related to the boat
• Management of the boat and decision-making
• Costs splitting procedures
• Reservation procedures for the use of the boat
• The allocation of liability between the sharers in the event of damage or accidents
• Prohibitions and requirements regarding the use of the boat
• Procedures for admitting new sharers, and for terminating the agreement, including how to sell a share in the boat

We recognise that the arrangements for issues such as reservations, cost splitting and use prohibitions on use will need to be different for each boat share club depending on the individual circumstances. To allow for such flexibility many parts of the agreement can easily be personalised to meet the needs of a particular sharing group. For example, the agreement provides for all of the running costs of the boat to be split between the sharers. The default position is that the various running costs are split equally, except for fuel (of any) which is paid for by each sharer depending on how much they have used. It is possible to alter the agreement if required so that costs are divided between the sharers in a different manner.

The agreement comes with extensive Drafting and Guidance Notes which fully explain the operation of the agreement and contain example additional or replacement clauses which may be used to personalise the agreement. The Drafting and Guidance Notes also contain practical tips and useful documents for use within the boat share scheme.

For further information about boat sharing please see the Boat Share Factsheet, and the boat sharing page of SharingContracts.com