Appendix 1.

8 Sales Contract Sample

Contract Reference: #2163

Subject: Food Aid DR Congo
Date: April 14, 2009
************************************************************************************
CONTRACT FOR THE PURCHASE OF GOODS
REMINDER: THIS IS A SAMPLE. ALL SPECIFIC DETAILS SUCH AS COMMODITY TYPE AND
SPECIFICATIONS MUST BE CHANGED TO MATCH YOUR INDIVIDUAL PROEJCT.
BETWEEN:

BUYER:

Canadian Foodgrains Bank

400-393 Portage Ave
P.O. Box 767
Winnipeg, Manitoba R3C 2L4
Canada
Tel: (204)944-1993
Website: www.foodgrainsbank.ca

and

SELLER:

ABC Suppliers
Harare, Zimbabwe
Tel: 123 456 789
Email: 123@abcsuppliers.com

We herewith confirm having purchased from you, on behalf of our partner, in Zimbabwe Meal, Beans, and
Oil divided in the parcels as per below:

LO
T

COMMODI
TY

COUNTRY
OF ORIGIN

AA

Maize

RSA

AB

Maize

AC

QUANTITY

DESTINATIO
N

250 MT

PRICE /
UNIT
(USD)
$500/MT

RSA

250 MT

$500/MT

Maize

RSA

250 MT

$500/MT

DDP
Bulawayo
DDP Gutu

AD

Maize

RSA

250 MT

$500/MT

BA

Beans

50 MT

$1,050/MT

BB

Beans

Ugan
da
Uganda

50 MT

$1,050/MT

BC

Beans

Uganda

50 MT

$1,050/MT

BD

Beans

Uganda

50 MT

$1,050/MT

CA

Oil

CB

Oil

Zimbab
we
Zimbabwe

CC

Oil

Zimbabwe

15,00
0 ltr
15,00
0 ltr
15,000 ltr

$2.50/ltr
$2.50/ltr
$2.50/ltr

DDP Gutu

DDP
Bulawayo
DDP Gutu
DDP
Bulawayo
DDP Gutu
DDP
Bulawayo
DDP Gutu
DDP
Bulawayo
DDP Gutu

DELIVERY
BEFORE/BETWE
EN
25 - 30th April
2009
25 - 30th April
2009
25 30th June
2009
25 30th June
2009
25 - 30th April
2009
25 - 30th April
2009
25 30th June
2009
25 30th June
2009
25 - 30th April
2009
25 - 30th April
2009
25 30th June
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Appendix 1.8 Sales Contract Sample

CD

Oil

Zimbabwe

15,000 ltr

$2.50/ltr

DDP
Bulawayo

2009
25 30th June
2009

Total Contract Value: USD $ 1,290,000

1. Specifications & Packaging Requirements:

LOT A
Specifications for White Maize:
The Cartagena Protocol (Bio safety Protocol, additional to the Convention of
Biodiversity) requires that exporters /producers indicate whether the food items
may contain GMOs (Genetically Modified Organisms) or not. If supplied in grains,
the product MUST NOT contain GMOs and certification is required in conformity with
the rules and regulations as set by the Government of Zimbabwe.
Origin
To be indicated in the offer
Grade
#2 or better
Protein
11.0% min
Moisture
12.5% max
Broken maize
3.0% max
Shrivelled maize
1.0% max
Weevil damaged maize
1.0% max
Other coloured maize
2.0% max
Extraneous matter & trash
1.0% max
Rotten/mouldy maize
1.0% max
Germinated maize
None
Total Defective maize
5.0% max
Contamination
None
Live insects
Free
Dead insects
10/kg max
Aflatoxin total
20 ppb max
Dockage
Commercially Clean LOCAL Ministry
of Agriculture Standards
Intended Use
Human consumption at point of final
delivery
Packaging for White Maize:
Bags
New woven polypropylene (PP) bags
Size
of 50 kg content each
Weight
min 85 g/m2
PP bags
special food grade UV-treated
Artwork
as per CFGB standards attached
An additional of 2% empty bags to be delivered at no extra costs.
LOT B
Specifications for Edible Beans:
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Appendix 1.8 Sales Contract Sample

Origin
Moisture
Foreign Matter
Other varieties
Split or Broken
Weevil/Holed Grains
Live insects
Dead insects
Discoloured beans
Total defective beans
Hydrocyanic acid
Salmonella
Aflatoxin
Ochratoxin
Cooking time
minutes
Intended use

To be indicated in the offer

14.0% max
1.0% max
2.0% max
2.0% max
2.0% max
Free
2/kg max
3.0% max
9.0% max
20mg/kg max (before cooking)
absent on 25g sample
4 mcg/kg
5 mcg/kg
after soaking for 24 hours; 45
average (max 90 minutes)
Human consumption at point of final
delivery

Packaging for Edible Beans:

Bags

New sacs made of polypropylene (PP)

Fit for export and multiple handling
Size
bags of 20 kg content each
Weight
min 85 g.m2
PP bags
Special food grade UV-treated
Stitching
double stitching at the opening
Language
French
Artwork
as per CFGB standards attached
An additional of 2% empty bags to be delivered at no extra costs
LOT C
Specifications for Edible Vegetable Oil:
Product must be free from abnormal flavour and odour and living insects/pests.
Origin
To be indicated in the offer
Appearance at ambient temp
Clear and shining
Water and volatile matter
0.2% max
Insoluble impurities
0.05% max
Free Fatty Acids
0.15% max, expressed as oleic acid
Soap
0.005%
Peroxide value
1 milli equiv/kg max
Specific weight
0.919 0.925 g/cm
Refractive index (at 40C)
1.466 1.47
Iodine value (MIJS)
58 140 g/100g
Lead content
2 ppm max
Colour (Lovibond)
5 (red/yellow) max 3.0/30
Refractive density (water at 27C)
0.910 0.950
Vitamin A fortification
6,000 I.U./kg

Authorized additives
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Appendix 1.8 Sales Contract Sample

Intended use
final

Shelf life

Packaging for Oil:

Jugs
high Size
Cartons
Language
Markings on the cartons
and on
Markings to include

max 75 mg of buyylated
hydroxytoluene (BHT-E-321)/kg of oil
Human consumption at point of
delivery
1 year at date of delivery

clean, new plastic bottle made of

density polyethylene, hermetically
sealed, HDPE to be UV-stabilized
5 litre plastic bottles
bottles to be packed in cartons
containing 4 x 5 litre bottles
English
As per CFGB standards on jugs
cartons
Date of Manufacturing / Expiry date

2. Inspection
2.1
2.2
2.3

An inspection company nominated by CFGB will inspect each tranche on quality at suppliers
warehouse.
Any additional inspection should be accounted to the supplier.
In case goods are rejected, sellers will contractually be obliged to pay already incurred fees for
rejected goods.

3. Payment Terms
3.1

In full within 30 days, against delivery of all required documentation

Documents:

2 Commercial invoices; inclusive bank account details

Pro-forma invoice addressed to consignee
Phytosanitary certificate
Fumigation certificate dated no later than 15 days prior to deliveryspecifying place, date, type of product, used, dosage, and time of
exposure
Non-GMO certificate for maize issued by a competent authority and
recognized by the government of Zimbabwe
Certificate of Origin (template will be provided)
Cargo report status on a weekly basis to the buyer
Cargo Receipt Certificate, stamped and signed for receipt by consignee
and surveyor
All documents to be supplied by seller and, if necessary, legalised,
inclusive invoice
All documents need to show Humanitarian Aid Shipment.
4

Appendix 1.8 Sales Contract Sample

3.3

Allowance for late delivery and/or deductions for quality/quantity deviations shall be deducted from
your invoice before accounts are settled.

4. Performance Bond
4.1

The selected supplier(s) will be requested to provide CFGB with a performance bond equal to 6%
of the contract value.

4.2

In the event that a valid reason for not being able to produce a performance bond is provided, 6%
of the contract value will be deducted from the first invoice. This money will be paid at the
completion of the contract.

5. Termination
5.1

Either party has the right to terminate the contract by providing one weeks (7 days) notice in writing
in the event that agreed terms are violated.

6. Force Majeure
6.1 Sellers shall not be held responsible in any way for partial or complete non-delivery arising from
circumstances falling under accepted definitions of Force Majeure e.g. strikes, riots, lockouts, civil
commotion, Act of God, and including export bans if any, imposed by the exporting countries as described
under the heading origin above.

7. Governing Law and Disputes

7.1
7.2

7.3

This Agreement shall be governed by and interpreted according to the laws of Zimbabwe
Any dispute arising out of, or in connection with, the present Agreement, including any questions
regarding its existence, validity, or termination, may, if possible, be referred to and finally resolved
by arbitration in accordance with the arbitration laws of the land with the following provisions:
The arbitration shall be held in Harare, Zimbabwe;
As soon as is reasonably practicable in the circumstances and with a view to it being
completed within 21 business days after it is demanded;
With only the legal and other representatives of the parties to the dispute present thereat
The arbitrator shall be, if the matter in dispute is principally:
A legal matter, a practicing attorney of Zimbabwe, of at least 10 years standing;
An accounting matter, a practising chartered accountant of Zimbabwe, of at least 10
years standing

Canadian Foodgrains Bank

ABC Suppliers

Signature

Signature
5

Appendix 1.8 Sales Contract Sample

Printed Name

Printed Name

Title

Title

DATE:

DATE: ___________________