Draft of Contract
Name of Commodity : ISRI BARLEY
Composition : Copper scrap 99.97% as per ISRI BARLEY
Quantity : 200 MT P/M 2% in seller’s option
Price per MT : USD 6,500.00 / MT. Total order value: 1,300,000.00 USD
Delivery : FOB Malaysia
Shipment : In 20 ft containers within 15 days of receipt of Buyer’s L/C
by a bank acceptable to seller, in full satisfactory and
subject to acceptable availability of container shipping
Origin : Malaysia
Load port(s) : Any sea port of Malaysia
Payment : By irrevocable letter of Credit (L/C) opened by a bank
acceptable to Seller, and advised through, negotiated by,
and payable at the counters of Seller’s bank (to be
nominated once Buyer confirms name and Branch of their
Said L/C is to be opened by fully tested telex or swift, and
is to be received by Seller in full satisfactory and operative
order to Seller, by latest 7 days of receipt of counter signed
If Buyer’s satisfactory, fully operative Letter of Credit
(L/C) has not been received by latest the above mentioned
date, then Seller has the sole option to either maintain or
cancel this contract, in case of the latter, Seller will have
no further responsibilities or obligations, supply wise or
legally to Buyer or to any other third party.
The L/C is to be opened in favor of:
L/C(s) to be payable at sight for 100% of invoice value against the below mentioned
Seller’s Commercial invoice in triplicate
Full set of 3/3 Original “on Board” Ocean
Bill of Lading(s) marked “Freight Prepaid”,
Seller’s Packing List Showing:
Container Number, Seal Number, and Net Weight
of each Container.
Seller’s Certificate of Quality.
Quality and quantity inspection report
Other Conditions of L/C:
All L/C expenses inside buyers country are for the
accounts of the Buyer. All L/C expenses inside UK are
for the accounts of the Seller, UK Bank’s confirmation
charges are to the accounts of the Seller as long as the
LC is payable at sight. Negotiation and Advising
expenses are for Seller’s account.
L/C will allow for plus 2% and minus 2% in total
quantity and value.
L/C must be valid for thirty six (15+21) days after
latest shipment date… of if L/C is opened latest by...
Third party documents are allowed except Invoice and
The invoice and packing list to be endorsed by the
Partial Shipments: Allowed
Minor spelling and typographical errors in documents
which do not change the meaning or an intended
implication should not be considered a discrepancy.
This credit is subject to the latest version on Uniform
Customs and Practice for Documentary Credits.
L/C to state “State Bills of lading/documents allowed.
Quality : To be final at load port
If the seller fails to supply the goods in conformity of the
quality and quantity of the contract, then the buyer may
terminate the contract and on termination buyer shall not
be liable to pay any loss, damage or consequential damage
to seller or any third party.
Weight : Weight settlement will be based on Seller’s Weight
Shipping Conditions : Seller in their option may utilize various container shipping
lines. Seller to ship material in 20 foot containers in
Seller’s option by a conventional/non-conventional liner
vessel up to 30 years of age registered with Lloyds or
equivalent agency, maintaining class equivalent to Lloyds
Shipment Advice : For each shipment, the Seller will inform Buyer of
container shipping line name, vessel name, planned sailing
date form loading port, vessel ETA at destination port.
One set of non negotiable copies of shipping
documents to be sent by Fax or E-mail to the Buyer
within 10 working days form the date of shipment.
Container Handling : Buyer will arrange and pay for drayage of loaded
container(s) form container terminal at above mentioned
destination port location and return of emptied container(s)
to location specified by shipping line. Buyer to pay
terminal handling charges at destination port.
Buyer is responsible for the cleaning of all containers and
any container damages incurred after Buyer pick up of
container at discharge port.
Demurrage/Detention : Any demurrage and/or detention expenses incurred at load
port are for Seller’s account. Likewise, any detention
expenses incurred at discharge port will be for Buyer’s
account. Seller guarantees minimum 10 demurrage free days
at destination port.
Other Conditions : Buyer is responsible for any import duties, taxes, and
compliance with import regulations including, but not
limited to, compliance with material inspection/certification
regulations for Buyer’s country, etc.
Buyer is fully responsible to Seller, for the full and
complete execution of this contract irrespective of whether
the cargo has been resold or assigned to any third party, and
such responsibilities will include timely opening of L/C and
carrying out L/C amendments, timely payment of any
inspection service arranged or required by Buyer or Buyer’s
bank, customs and port dues and submission of documents
for clearance, and timely clearance of containers on arrival
It is of the essence of the contract and constitutes and
essential condition of the present agreement, that the above
mentioned Letter of Credit is received and confirmed by
Seller’s Bank on or before cargo arrives at discharge port.
It is also an essential condition of the contract that on or
before………a duly signed copy of this contract and duly
initialed at each page by the Buyer to be returned to and
received by the Seller. If these special conditions are not
satisfied, by the Buyer, then the Seller may at their sole
discretion, annul and cancel this contract without any
additional written notice to that effect.
Warranty : Buyers assume all risks involved in the use or possession of
material delivered hereunder. No warranties, expressed or
implied, are made by Sellers other than that the material
conforms to the description stated herein within any
Any claims that material delivered hereunder does not
conform to specifications set herein are waived unless
presented in writing by Buyers to Sellers within 7 (seven)
days after delivery thereof. If no event shall Sellers be liable
for incidental or consequential damages or for specific
Hazardous / Radioactive / All scrap shall be safe for normal use by the Buyer, and
Dangerous Material shall be free form wood, all types of explosives and/or
dangerous materials such as bombs, ammunition, gas
cylinders and radioactive materials, radioactive waste or
In case of any radioactive material/waste found or detected,
Seller shall take such material back to the source of supplies
at Seller’s own risk and expense and shall be responsible for
all the related expenses, losses and damages incurred
Force Majeure : Force Majeure, as used therein, shall mean a cause or causes
beyond the will or control of any of the parties to this
contract as the case may be, which wholly or in part,
prevents performance by the claiming party of its obligations
hereunder (except for buyer’s obligation to pay for the
Examples of force majeure include without limitation; Acts
of God, insurrections, blockage of the loading port and/or the
discharge port, declared or undeclared war, nots, strikes,
lockouts, breakdown of or images to or destruction of
installations and/or man-made disasters, actions and/or
restrictions of government (or agencies thereof), or any like
contingency beyond the reasonable control of Seller or
Buyer. If, because of Force Majeure, any party or parties to
this agreement are unable to carry out their obligations, and
if such party or parties immediately gives the other parties
hereto written notices of such Force Majeure, then the
obligations and liabilities of the party or parties giving such
notice shall be relieved, but after the expiration of sixty (60)
days, the party not claiming excuse under this provision may
cancel the contract.
Arbitration : All disputes, differences and claims arising out of or in
connection with this agreement or in relation thereto shall be
resolved through arbitration. Each party shall appoint its
arbitrator and the arbitrators so appointed by the parties shall
appoint a third arbitrator who shall act as the Chairman of
the Arbitral Tribunal. The award passed by the Arbitral
Tribunal shall be final and binding upon the parties. The
venue of the arbitration shall be at Singapore. The language
of the arbitration shall be English.
This contract is made in two original copies, one copy to be held by each party in witness thereof.
Accepted by Buyer: Accepted by Seller:
Authorized Signature Authorized Signature