Indian Council of Arbitration

Brief Specimen Contract Form For Sale Purchase Transactions, Exports and Imports

1. Name and address of the parties (state correct appellation and complete address of the parties)

2. We, the above named parties have entered into this contract for the sale/ purchase, etc (state breifly the purpose of the contract) on this (date) at (Place), subject to the following terms
and conditions:

a) Goods

Quantity

Quality

(Describe the quantity, quality and other specifications of the goods precisely as per agreement. An agency for inspection/certification of quality and/or quantity may also be stipulated).

b) Price
Mode of Payment
[Quote the price, terms, i.e. ex-works/FOB (free on board)/CIF (cost Insurance, freight) etc. in the currency agreed upon and describe the mode of payment i.e. payment against L/C (letter of credit)/DA (document against acceptance)/DP (document against payment) etc. It is also
desirable to mention the exchange rate.]

c) Shipment
(Specify date of delivery and the maximum period upto which delivery could be delayed and for which reasons. Port of Shipment and of delivery should be mentioned).

d) Packing and marking
(Requirements to be specified precisely).

e) Insurance
(State the type of insurance cover required, i.e. FPA (free from particular average)/WA (with average)/AII Risks, etc. State also the party responsible for the insurance).

f) Brokerage/Commission
(if any payable may be mentioned).

g) Passing of the property and of risk.
(The property or ownership of the goods and the risk shall finally pass to the buyer at such stage as the parties may agree, i.e. when the goods are delivered at the seller's place of work/pass the ship's rails/are covered by insurance etc. as per agreed terms).

Arbitration

Arbitration clause recommended by the Indian Council of Arbitration :

"All disputes or differences whatsoever arising between the parties out of or relating to the construction, meaning and operation or effect of this contract or the breach thereof shall be settled by arbitration in accordance with the Rules of Arbitration of the Indian Council of Arbitration and the award made in pursuance thereof shall be binding on the parties".

(or any other arbitration clause that maybe agreed upon between the parties).

3. Any other special condition, prevalent In or relevant to the particular line of trade or transaction, may also be specified.

Sd/ - Seller

Sd/ - Buyer

Note : The above specimen contract form, drawn up in brief essentials, is meant for simple small scale transactions and is intended to draw the attention of the parties to Important aspects of the trade deal in drafting the contract. The parties are free to add to or modify the terms as per the peculiar nature of their trade transaction. They may also consult with advantage, experienced commercial or arbitration bodies for the purpose or study published literature on the subject.
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