Purchase Agreements

[Onex107]

Those of you that have purchased a flying Sonex, did you have a written purchase agreement with the seller? If so, how extensive where the details and did it have wording protecting the seller from further litigation?

[karmarepair]

My project was NOT flying, but the purchase agreement, between myself and my local EAA Chapter, and drafted with help from EAA National, has EXTENSIVE liability avoidance clauses.

A few of them:

3. Purchaser acknowledges that the partially assembled Aircraft was designed as an Experimental
amateur-built aircraft and is not designed nor built to meet any standards of airworthiness as with
a standard certificated aircraft. Further, Purchaser acknowledges that the work that was done on the
partially assembled Aircraft was not built in a permanent jig and parts are not interchangeable with any
other aircraft of the same facsimile and that no representation is made as to the completeness or
quality of construction. Purchaser understands that the owner is free to make such
modifications or changes as he, she, or it wishes. Purchaser acknowledges that the partially
assembled Aircraft may or may not contain structural and/or design defects or inadequate and/or
inappropriate materials or components, and that this Agreement neither includes nor provides any
assurances that the partially assembled Aircraft is complete, airworthy, insurable, fit for service, or
capable of being licensed or authorized for any flight, use, or operational activities of any kind or nature
whatsoever. Purchaser acknowledges and agrees that all decisions, judgments, or inspections related to
the conveyance, sale, delivery, and registration of the partially assembled Aircraft are exclusively those
of Purchaser and are Purchaser’s sole and absolute responsibility.

4. The partially assembled Aircraft is sold on an as-is basis. Any and all of the work done
on the Aircraft was by amateurs and aircraft does not comply with the federal safety
regulations for standard certificated aircraft, seller disclaims all express or implied
warranties or representations of any kind or nature whatsoever to purchaser and
anyone else including, but not limited to, warranties or representations of
airworthiness, merchantability, and/or fitness for purpose. Seller makes no express or
implied warranties or representations of any kind or nature whatsoever that aircraft
can be made complete, airworthy, insurable, fit for service, or capable of being licensed
or authorized for any flight, use, or operational activities of any kind or nature
whatsoever. Purchaser acknowledges and agrees that as owner of the partially
assembled aircraft, purchaser shall be responsible for its aerodynamics and structural
concept and for the performance and fitness for purpose of every part and piece of
aircraft. Additionally, Seller disclaims all express or implied warranties or
representations of any kind or nature whatsoever to purchaser and anyone else for
any flying or ground handling characteristic, for the structural integrity, or for any
feature, part or component of Aircraft.

And

7. Purchaser hereby waives and releases EAA Chapter <...>, its officers, members, and
associates from any and all claims, losses, demands or liability of every kind which such
person or persons may have, or claim to have, against said builder/seller by reason of
any injury, death or property damage of any kind sustained while being an owner, an
operator, a pilot, or a passenger in this Aircraft. This waiver and release is binding on
the heirs, personal representatives and assigns of the purchaser, subsequent owner,
pilots and passengers.
8. Purchaser shall defend, indemnify, and hold Seller harmless from each and every claim made
against Seller as a result of Purchaser’s ownership, possession, use or operation of Aircraft from
the date of this Agreement.

Direct Message me and I'll send you a redacted version of the whole thing.

[GraemeSmith]

Those of you that have purchased a flying Sonex, did you have a written purchase agreement with the seller? If so, how extensive where the details and did it have wording protecting the seller from further litigation?

Yes. We used the EAA Drafted Agreement - unedited.

As my attorney pointed out (and as I was well aware) it is completely favors the seller. And why not? Especially with a part complete kit. The seller has no idea how good or bad a job you will do completing it and really cannot be expected to be liable ongoing.

For a flying aircraft - you might subsequently make a skin repair with a flattened steel coffee can, the builder's surrounding aluminum subsequently fails as it corrodes in contact with the steel. It is NOT the builder's fault the wing folds when it does.

YOU go into this eyes wide open and YOU decide on the quality of what you are buying. YOU ultimately make the decision to buy and fly the plane (or not).

Get a good pre-buy and make a decision.

[Scott Todd]

The seller should be protected. He has NO control over what the buyer or subsequent buyer does. The seller should never have to defend themself in a sticky situation. Imagine one where the airplane may be destroyed and someone is trying to prove they made a mistake. The seller may have build photos showing they did it correctly but how much will they spend defending themselves, possibly years after selling an airplane/project. Its just wrong.

As a buyer, you should have every opportunity for a pre-buy and to verify the airplane was properly built using the correct materials and techniques. If not, don't buy it!

[Onex107]

In this case I am the seller. I have an article by Jerry Eichenberger, printed in Kit Planes seven years ago. He lists four important clauses protecting the seller that should be included in a purchase agreement and I have included them. I need to see the EAA proposal.

[GraemeSmith]

In this case I am the seller. I have an article by Jerry Eichenberger, printed in Kit Planes seven years ago. He lists four important clauses protecting the seller that should be included in a purchase agreement and I have included them. I need to see the EAA proposal.

The EAA agreement is attached to this post:

viewtopic.php?f=67&t=6284

[Skippydiesel]

No offense intended, however its the litigiousness USA ( & ambulance chasing lawyers) that is slowly but surely infecting the mindset of the rest of the English speaking world.

Before all this paranoia, a simple receipt/bill of sale & handshake was all that was required to seal a deal and transfer responsibility to the new owner. That's how I purchased my Sonex and befor that, walked out on a deal fora Europa XS, because the broker tried to force a bovine excrement agreement, modeled on your EAA sales agreement, on me.
We have laws that protect purchasers from vendor criminal negligence - they dont need the support of individual agreements, nor can they be undermined by agreements that might seek to do so.