Example of business contract
Hi.
If you are interested International business this contract will be interesting for you.
Contract Date: dd.mm.yy
Contract No.
Seller:
Buyer:
Commodity: Black sea origin milling wheat in bulk, crop 2017
Quality specifications: Goods shall be sound, loyal and merchantable, free from alive weevils/insects and free from foreign smell with following specifications to be mutually agreed upon according to grade: Max % moisture Max % foreign matter Min % protein (Nx5.7) on dry basis Min xx kg/hl Test Weight Min Gluten as per ISO NO 2 Min xxx/Sec Hagberg Min xxx W Max % Bug Damaged
Quality/Condition: Quality/Condition final at time and place of loading as per certificate/s issued by a surveyor from the GAFTA approved register – Botrans at Sellers’ costs. Results of analysis emanating from GAFTA approved analyst
Destination: ____________________.
Weight: Final at time and place of loading as per certificate/s issued by a surveyor from the GAFTA approved register – at Sellers’ costs.
Quantity: xxxxx metric tons 10% more or less at Buyers’ option at contract price
Packing: In bulk.
Period of delivery: Between xxx 201x (both dates included) at Buyers option, no extension
Price: USD xxx per metric ton, FOB ST 1SP 1SB, EU Black sea port.
Payment: Payment by CAD through the banking channels 100% Net cash within 5 banking days, to Sellers' bank after presentation of the following documents via banking channel to Buyer first class bank in _______. Buyer can pay from more than one bank in ________. Shipping documents to be sent to buyer's bank: • Signed commercial invoice signed and stamped in 2 originals plus 4 copies. • 3/3 clean on board Bills Of Lading, issued "TO ORDER" Marked Freight payable as per charter – party. The rest of the documents to be sent as per the buyer's instructions: • Certificate of origin issued by chamber of commerce duly legalized by the __________ embassy / consulate in country of origin. • Certificate of Weight issued by GAFTA approved surveyor - • Certificate of Holds Cleanliness certificate issued by GAFTA approved surveyor - • Original Non-Radioactivity certificate, issued by official authorities plus 2 copies • Original of Quality certificate issued by Ministry of Agriculture of Service on Veterinary and Phyosanitary Supervision with GAFTA Logo. • Fumigation Certificate issued by fumigation company (GAFTA membership) showing active recirculation, Method G system with fumisleeves, with dosage 4gm/m3 and exposure time 120 hours. • Phyto-sanitary certificate issued by official authorities • Original analysis certificate issued by a first class independent surveyor stating the quality of the goods and indicating that it was issued by independent GAFTA superintendent bearing "GAFTA" LOGO. This analysis certificate to mention that the goods were found sound loyal and merchantable, free from live insects, free from cotton seeds and ambrosia seeds and free from rust. Aflatoxin to be negative equal or less than 4 ppb. • Bug damage analysis to be issued on a separate certificate by first class independent surveyors. • Vomitoxin certificate issued by first class independent surveyors • Crop year certificate issued by first class independent surveyors stating that goods are from 201x CROP Sellers guarantee that the banks required documents should be presented at the counter of buyers’ banks based in _________ and the rest of documents to be in buyers’ hand, upon vessel arrival at discharge port. If the shipping documents arrived to the Buyers’ banks later than NOR validly tendered as per relevant CP at discharge port than the Sellers to be responsible for the difference in the laytime calculation caused by such delay. The Buyers shall present the Owners’ laytime calculation supported by SOF and NOR at load port based on the charter party which to be presented 1 day prior to the vessel arrival at discharge port. If any time lost from validly tendered NOR at discharge port until presentation of the shipping documents to the Buyers’ bank then only the same to be for the Sellers’ account and only if demurrage occurred at discharge port. Time from validly tendered NOR at discharge port until presentation of the shipping documents to the Buyers’ bank which falls on weekend or holidays not to count as laytime or time on demurrage. Partial discharge against partial payment acceptable Payment considered done basis swift copies from banks Third Party documents (except commercial invoice) are acceptable. All bank charges in Buyers’ bank to be for Buyers’ account. All commissions and charges of any kind (including transfer, cable and other charges) outside Sellers’ bank and Seller’s corresponding bank are for Buyers’ account All bank charges in Sellers’ bank to be for Sellers’ account. Legalization of documents (if required) to be done by sellers at sellers’ account The buyer has the right to split the documents and present them to the bank (s) It is also understood that The Uniform Rules for Collections, 1995 revision, ICC Publication No. 522, shall apply to this contract / collections instructions.
Pre-advice: Buyers shall serve to the Sellers not less than 5 days pre-advice with the following information: • ETA • Vessel’s name • Flag • Dimensions of the vessel (LOA/BEAM) • DWT • AIRDRAFT • Demurrage/despatch rate • Destination/importing country • Exact quantity to be loaded The Buyers, or their forwarding agent, shall send to the Sellers and agents at loading the 5, 3, 2 days and the 24 hours’ precise Master’s notices of the vessel’s arrival at the loading port. C/P: Buyers shall send by email/fax/courier a working copy of the C/P or booking note duly signed and stamped to Sellers without delay, but in any case not later than 1 working day before vessel’s arrival.
Loading instructions: The Buyers shall give the final and accurate loading instructions to Sellers latest two working days prior to the estimated date of vessel’s arrival (ETA) at the load port specifying all the major details for issuance of the documents, including exact quantity of the goods to be loaded on board of the vessel and indicating the country of destination. Except for the commercial invoice, all other documents shall not mention any amount/price. All documents to be issued in English language or with English translation, in any case in accordance with Buyers instructions but within the terms and conditions of the contract.
Loading terms: Loading rate to be xxxx metric tons per WWD of 24 consecutive hours Saturdays Sunday and official holidays excluded even if used.
Notice of Readiness: Notice of Readiness shall be tendered at the office of Sellers or the agent at the load port between 08.00 a.m. and 05.00 p.m. local time on all days except Saturdays, Sundays and holidays. WIPON/WIFPON/WICCON/WIBON. Lay-time starts counting at 8.00 a.m. the next working day if N.O.R. is validly tendered during normal office hours, between 8.00 a.m. and 5.00 p.m. local time from Monday to Friday. Time from Friday 5.00 p.m. (or at 5.00 p.m. on a day preceding official holiday) till next Monday at 8.00 a.m. (or at 8.00 a.m. on the day following holiday) not to count, even if used. All other terms and conditions as per relevant C/P.
Vessel’s agent: Vessel’s agent at load port to be appointed by Sellers.
Demurrage/Dispatch: As per C/P rates; dispatch – half demurrage. The invoice for demurrage shall be supported by duly signed S.O.F. To be settled within 30 days after loading on the basis of S.O.F. duly signed by the ship’s agent. All other terms and conditions when not conflicting with the above, as per relevant C/P.
Insurance: To be covered by Buyers at their own risk and costs, from the moment the goods pass the ship’s rail at loading until completion of discharge. Buyers undertake to confirm insurance coverage upon first request from Sellers.
Other terms: Any taxes,-duties, -levies etc. on goods, freight or documents in country of destination are for Buyers’ account. Any taxes,-duties, -levies etc in the country of origin are at Sellers account Vessel(s) shall be single-decker(s)
Confidentiality Clause: The existence of this agreement and its terms and conditions constitute confidential information and shall be kept confidential by the parties, provide however that the parties may disclose information relating hereto to any of their affiliates, professional advisors or consultants which, in each case, are bound by a duty of confidentiality or to any government body and / or required by applicable law or regulation.
General terms: All other terms and conditions, if not in conflict with the above, as per GAFTA 49 contract, with its arbitration rules no. 125 for arbitration in London, which both parties here to shall be deemed to be cognizant.
On behalf of Seller: On behalf of Buyer:
Best regards,
Commodity broker
Nick