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FOB Contract
FOB Contract
FOB Contract
Buyer :
Seller :
This sales purchase contract made and entered into this day dated XX/XX/09 by and
between the Buyer and Seller, whereby the Buyer agrees to buy and the Seller agrees to
sell under mentioned goods in the terms and conditions set forth in this contract as
hereunder:
Clause 1.Definintion
In this contract, the following term shall, unless otherwise specifically defined, have the
following meanings:
Ore means iron ore of India origin .
Metric Tonne means a tonne equivalent to 1000Kilogram .
Wet basis means ore in its natural wet state .
Dry basis means ore dried at 105 degrees .
SGS means societe generale de surveillance
India office .
Clause 2.Commodity
The delivery quantity shall be min/ avg 2000MT +/- PWWD , upto min 40,000 MT (+/-10 %)
DMT at buyers plot inside Vizag port . The dumping into port/plot will start within 50
wkng hrs from the date of signing this contract.
Clause 4. Guaranteed specifications:
-10 mm : 90%
+10mm : 10% Max
Below 150 microns : 30% Max
CLAUSE 5 PRICE
Indian iron ore under this contract is priced INR 3,200/- PDMT ( Indian rupees
Three Thousand two Hundred only per dry metric tonne). Price will not be
changed , at any event during the entire execution and performance for the
agreed quantity of 40,000 DMT as per contract . If form “H” provided above
price reduced by 4% as tax @ exempted .
6.2 Impurities
Payment shall be made by RTGS transfer of 80% funds out of the total amount of
dumped cargo value at sight , basis railway challans , weighbridge/weighment issuance of quantity ,
transport memos , and provisional invoice raised by seller ,,, thus into seller’s nominated bank
account within a max of 24 banking hrs , as buyer / buyer’s nominated representative witnesses
cargo AT SIGHT . The rest / final 20% must be credited , upon buyer’s receipt of SGS analysis
reports & weightment survey but not to exceed 5 working days from completion of dumping .
Buyer’s representative can be present at weighment site at port whilst entry of cargo & measurement ,
therefore witnessing actual cargo quantity dumped , as issued by port weighment department . Both
parties have access to such department issued bills for actual quantity by port official , and such
document forms basis for quantity calculations .
In any eventuality if the price adjustments thus made of 20% exceeds the said amount ,, seller is
legally bound to refund the calculated adjustment on price ,, this being duly documented / supported
by inspection agency reports of quality and quantity to authenticate buyer’s calculations .
All analysis at destination of supply is to buyer’s cost . All analysis at source of supply is to seller’s
cost .
Incase if the price adjustments after receipt of SGS reports do not exceed the final 20% ,, then buyer
must credit the remaining final amount into seller’s nominated bank account within a max of 24 hrs
from final invoice raised by seller to buyer . All survey reports by inspection agency / s of respective
parties at respective venues must be readily made available to each other within 24 business hours of
receipt of so from agency .
Final invoice to be basis inspection agency & port reports of quality , quantity . .
No documentary credit payment acceptable in either cases . Ground loss is to buyer’s account .
In any eventuality , if the above working finalities fall beyond business hours on a weekday starting
from Monday to Friday , the payment procedural time will begin from 8 am IST, the following day ,
Saturday being a banking day . If working finalities fall on Saturday , beyond business hours ,,
Sunday being a banking holiday,, payment procedural time will commence from 8am IST Monday .
If for any reason Monday falls a banking holiday ,, following day of Tuesday will be considered .
Unless a stated bank holiday for calendar reasons or for force majeure , payment procedural functions
cannot be withheld .
Most documents evidencing the seller’s provisional invoice for 80% will be made available to buyer
prior to delivery/ dumping , so buyer has enough time to keep their calculations ready and handy to
review seller’s invoice once placed ,,, hence buyer must not delay payment time by mere reasons of
their calculations .
Clause 8. Documents :
If at any time during the existence of this contract either party is unable to perform whole or in part
any obligation under this contract, because of war, Hostility, military operation of
any character, civil commotions, sabotage, quarantine restriction, acts of
Government, fire, floods, explosions, epidemics, earthquakes, storms, strikes or other
labor trouble which is out of the liability control of Seller, embargoes, then the date
of fulfillment of any obligation shall be postponed during the time when such
circumstances are operative.
Any waiver/extension of time in respect of the delivery of any installment or part of the
goods shall not be deemed to be waiver/extension of time in respect of the remaining
deliveries. If operation of such circumstances exceeds one month / 30 days , either
party will have the right to refuse further performance of the contract in which case
neither party shall have the right to claim eventual damages. The party which is
unable to fulfill its obligations under the present contract must within 2 days / 48
wkng hours of occurrence of any of the causes mentioned in this clause shall inform
the other party of the existence of the termination of the circumstances preventing the
performance of the contract.
Certificate issued by a Chamber of Commerce or any other competent authority /
published notification / any publishment under state law , connected with the cause in
the state / region of the Seller or the Buyer shall be sufficient proof of the existence
of the above circumstances and their duration.
Non-availability of material will not be an excuse to the Sellers for not performing their obligations
under this contract and will thus be susceptible to pay eventual damages if so claimed
by buyer ..
A delay beyond a month is to be considered as termination of contract and further performance is
subject to renegotiations by both parties .
SGS,GISCO, TCRC or S.K.Mitra by Buyer shall analyze one of the portions for Iron (Fe)
content and other chemical composition on WET basis as set forth in Article 4 as per
Indian standard and shall issue the certificate of such analysis.
1. Amendments to the Contract shall be valid only if, agreed in writing and duly
signed by both parties and exchanged in original .
2. Correspondence in the course of the ordinary execution of the contract such as
anticipated delivery/ dumping dates/ time etc will be regularly sent by fax or
mail or email to buyer so that if he desires he may keep his appointee at
weighment .
3. Notices to evoke arbitration or termination of the Contract shall be sent as an
advance fax with an original by prominent courier service and shall be deemed
delivered on the evidence date of the courier deliver.
4. The language of the Contract and all correspondence, notice, invoices,
certificates , shall be in English.
5. ICC INCO terms 2000 apply to this contract.
6. The contract supersedes all prior negotiations, representations and agreements
if any and this is the first agreement between the seller and the buyer for the
sale and purchase of the goods under this contract only .
7. The Contract is drawn up in 2(Two) Originals, each initialed and signed by the
seller/buyer and each one receiving 1 (one) original .
8. Each party’s liability towards each other is limited to the penalties, charges,
damages and remedies expressly stated in this contract.
9. The contract will be signed and exchanged between the seller and the buyer
initially via email , followed by Hard copies.
The fax/e-mail transmission of the contract shall be legal and binding until and unless exchanged in
original.
In witness whereof the parties here to have executed these presents in duplicate at India on this
oct., 09, and the duly authorized representatives of the seller and buyer having signed on this day .
Each party retains one respective copy thereof.
BUYER SELLER
_________________________________ _________________________________
[Authorised Signature] [Authorised Signature]