Agreement for Sale of
Goods (C.I.F. Basis)
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 to 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;
Seller agrees to sell to the Buyer and the Buyer agrees to buy from the Seller,
synthetic rubber of… tons… quantity at the price of… sterling per ton
(hereinafter referred to as the said ‘goods’) C.I.F. for December – January
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.
Seller will enter into a contract of affreighment 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.
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…
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.
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.
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.
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 the
last date of shipment, the Buyer shall be deemed to have agreed to an extension
of a reasonable period for shipment.
will he the responsibility of the Buyer to obtain license for the Import of the
goods In its country and to pay all the custom duties, import duties and other
clearance charges for clearing the goods from the ship and carrying them to its
factory or godown.
it will be the responsibility of the seller to take out an export License if
required by the law of its country and to pay all charges for transport and
shipment of the said goods.
seller shall inter to the contract at is own expense for the carriage of the
goods to the port of destination namely – by the usual route In a seagoing ship
for the transport of the said goods.
seller shall obtain at is own costs cargo Insurance for the price of the goods
plus 10% so that the buyer shall able to the claim directly from the insurance
provide the buyer with the Insurance policy or other evidence of insurance
cover. The insurer shall be of good reputed and the Insurance shall be in
accordance with maximum cover of the cargo clauses embed by the institute of
undeprescribed writers. The declaration of the insurance shall be from the
delivery of the goods on board the ship at the port of shipment namely …..
seller shall he responsible for all the risk of loss of damage to the goods
until such time as they have the passed the ships rail at the said port of
shipment. The seller shall also bar the risk to the goods until they have been
delivered as aforesaid including costs of loading the goods on boat the ship
and charges for unloading at the port of discharge which may be levied by the
shipping line when contracting for carriage and also pay all customs charges
for exportation as will as all duties taxes and other Government charges
payable on exportation.
seller shall give sufficient notice that the goods have been delivered on board
the ship as will as any other notice required to allow the buyer to take
measures necessary to unable him to take delivery of the goods.
buyer shall pay all costs relating to the good from the time they have been
delivered to the ship and pay all costs and charges relating to the goods
whilst in transit until her arrival and other charges and duties and taxes
payable at the port of discharge.
any dispute arises between the parties in respect of this contract of
whatsoever nature or if any claim by one against the other is disputed the same
will be referred to arbitration under the Bye-laws of the … Association in
Sd/- Seller Sd/-