Agreement for Sale of Goods (C.I.F. Basis)

Updated at:March 2010
 
FREE EXCERPT

THIS AGREEMENT is made at... this... day of... between M/s. A B & Co. Ltd., a company registered under the (English) Companies Act and having Its registered Office at __________ London. Hereinafter referred as the 'Seller' of the one part and M/s. X Y & Co. Ltd., a Company registered under the (Indian) Companies Act, 1956. and having its registered office at __________hereinafter referred to as 'the Buyer' of the OTHER PART;

  1. The Seller agrees to sell to the Buyer and the Buyer agrees to buy from the Seller, synthetic rubber ___________tons, of_______quanlity at the price _________ sterling per ton (hereinafter referred to as the said 'goods') C.I.F. for December - January shipment.

  2. The Seller- will engage space in a ship at the port of shipment and Intimate the name of the ship and her expected date of arrival in any port in India.

  3. The Seller will enter into a contract of afreighment with the owner of the ship for transporting and delivery of the said goods at the port of_______ in India. The Buyer shall also obtain a Policy of Insurance for the value of the said goods upon the current terms and make out an invoice.

  4. The Buyer shall open a Letter of Credit through its Bankers for the agreed price of the goods and including the freight, insurance and other charges in favour of the Seller's Banker viz______________

  5. The Seller shall ship the goods in the ship and despatch the documents relating to the said goods namely the contract of affreighment, insurance policy, invoice, bills of lading etc. to its Bankers at the port of arrival.

  6. The said documents duly endorsed in favour of the Buyer will be handed over to the Buyer's Bankers against encashment of the Letter of Credit and the Buyer will receive the same from Its Bankers to enable the Buyer to get the goods cleared at the port of arrival. Such delivery of documents will be deemed to be delivery of the goods to the Buyer and thereafter the goods will be at the risk of the Buyer.

  7. If the said goods are short delivered or are not according to the quantity or quality agreed upon the Buyer, he will be entitled to claim compensation for the loss suffered by it due to short delivery or breach of warranty and the Seller will be liable to make good the loss.

  8. If the goods are not shipped by the Seller within the shipment period mentioned above, the Buyer will have the option either to cancel this contract or to extend the period. If the contract is not cancelled within two weeks from...

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