PURCHASE CONTRACT

PURCHASECONTRACT

ContractNo:
Date:
TheBuyer:
TheSeller:
TheContract,madeout,inChineseandEnglish,bothversionbeing
equallyauthentic,byandbetweentheSellerandtheBuyerwherebythe
SelleragreestosellandtheBuyeragreestobuytheundermentionedgoods
subjecttotermsandconditionssetforthhereinafterasfollows:

SECTION1

1NameofCommodityandspecification
2CountryofOrigin&Manufacturer
3UnitPrice(packingchargesincluded)
4Quantity
5TotalValue
6Packing(seaworthy)
7Insurance(tobecoveredbytheBuyerunlessotherwise)
8TimeofShipment
9PortofLoading
10PortofDestination
markshownasbelowinadditiontotheportofdestination,package
number,grossandnetweights,measurementsandothermarksastheBuyer
mayrequirestencilledormarkedconspicuouslywithfastandunfailing
pigmentsoneachpackage.Inthecaseofdangerousand/orpoisonouscargo
(es),theSellerisobligedtotakecaretoensurethatthenatureandthe
generallyadoptedsymbolshallbemarkedconspicuouslyoneachpackage.

12TermsofPayment:
OnemonthpriortothetimeofshipmenttheBuyershallopenwiththe
Bankof_______anirrevocableLetterofCreditinfavouroftheSeller
payableattheissuingbankagainstpresentationofdocumentsas
stipulatedunderClause18.A.ofSECTIONII,theTermsofDeliveryof
thisContractafterdepartureofthecarryingvessel.ThesaidLetterof
Creditshallremaininforcetillthe15thdayaftershipment.

13OtherTerms:
UnlessotherwiseagreedandacceptedbytheBuyer,allothermatters
relatedtothiscontractshallbegovernedbySectionII,theTermsof
DeliverywhichshallformanintegralpartofthisContract.Any
supplementarytermsandconditionsthatmaybeattachedtothisContract
shallautomaticallyprevailoverthetermsandconditionsofthisContract
ifsuchsupplementarytermsandconditionscomeinconflictwithtermsand
conditionshereinandshallbebindinguponbothparties.
FORTHESELLERFORTHEBUYER

SECTION2

14FOB/FASTERMS
14.1Theshippingspaceforthecontractedgoodsshallbebookedby
theBuyerortheBuyer’sshippingagent__________.

14.2UnderFOBterms,theSellershallundertaketoloadthe
contractedgoodsonboardthevesselnominatedbytheBuyeronanydate
notifiedbytheBuyer,withinthetimeofshipmentasstipulatedinClause
8ofthisContract.

14.3UnderFASterms,theSellershallundertaketodeliverthe
contractedgoodsunderthetackleofthevesselnominatedbytheBuyeron
anydatenotifiedbytheBuyer,withinthetimeofshipmentasstipulated
inClause8ofthisContract.

14.410-15dayspriortothedateofshipment,theBuyershallinform
theSellerbycableortelexofthecontractnumber,nameofvessel,ETA
ofvessel,quantitytobeloadedandthenameofshippingagent,soasto
enabletheSellertocontacttheshippingagentdirectandarrangethe
shipmentofthegoods.TheSellershalladvisebycableortelexintime
theBuyeroftheresultthereof.Should,forcertainreasons,itbecome
necessaryfortheBuyertoreplacethenamedvesselwithanotherone,or
shouldthenamedvesselarriveattheportofshipmentearlierorlater
thanthedateofarrivalaspreviouslynotifiedtotheSeller,theBuyer
oritsshippingagentshalladvisetheSellertothiseffectinduetime.
TheSellershallalsokeepinclosecontactwiththeagentortheBuyer.
14.5ShouldtheSellerfailtoloadthegoodsonboardortodeliver
thegoodsunderthetackleofthevesselbookedbytheBuyer.Withinthe
timeasnotifiedbytheBuyer,afteritsarrivalattheportofshipment
theSellershallbefullyliabletotheBuyerandresponsibleforall
lossesandexpensessuchasdeadfreight,demurrage.Consequentiallosses
incurreduponand/orsufferedbytheBuyer.

14.6Shouldthevesselbewithdrawnorreplacedordelayedeventually
orthecargobeshutoutetc.,andtheSellerbenotinformedingoodtime
tostopdeliveryofthecargo,thecalculationofthelossinstorage
expensesandinsurancepremiumthussustainedattheloadingportshallbe
basedontheloadingdatenotifiedbytheagenttotheSeller(orbasedon
thedateofthearrivalofthecargoattheloadingportincasethecargo
shouldarrivetherelaterthanthenotifiedloadingdate).The
abovementionedlosstobecalculatedfromthe16thdayafterexpiryofthe
freestoragetimeattheportshouldbebornebytheBuyerwiththe
exceptionofForceMajeure.However,theSellershallstillundertaketo
loadthecargoimmediatelyuponthecarryingvessel’sarrivalatthe
loadingportatitsownriskandexpenses.Thepaymentoftheafore-said
expensesshallbeeffectedagainstpresentationoftheoriginalvouchers
aftertheBuyer’sverification.

15C&FTerms
15.1TheSellershallshipthegoodswithinthetimeasstipulatedin
clause8ofthisContractbyadirectvesselsailingfromtheportof
loadingtoChinaport.Transhipmentonrouteisnotallowedwithoutthe
Buyer’spriorconsent.Thegoodsshallnotbecarriedbyvesselsflying
flagsofcountriesnotacceptabletothePortAuthoritiesofChina.

15.2ThecarryingvesselcharteredbytheSellershallbeseaworthy
andcargoworthy.TheSellershallbeobligedtoactprudentlyand
conscientiouslywhenselectingthevesselandthecarrierwhenchartering
suchvessel.TheBuyerisjustifiedinnotacceptingvesselscharteredby
theSellerthatarenotmembersofthePICLUB.

15.3ThecarryingvesselcharteredbytheSellershallsailandarrive
attheportofdestinationwithinthenormalandreasonableperiodof
time.Anyunreasonableaviationordelayisnotallowed.

15.4TheageofthecarryingvesselcharteredbytheSellershallnot
exceed15years.Incaseherageexceeds15years,theextraaverage
insurancepremiumthusincurredshallbebornebytheSeller.Vesselover
20yearsofageshallinnoeventbeacceptabletotheBuyer.
15.5Forcargolotsover1,000M/Teach,oranyotherlotslessthan
1,000metrictonsbutidentifiedbytheBuyer,theSellershall,atleast
10dayspriortothedateofshipment,informtheBuyerbytelexorcable
ofthefollowinginformation:thecontractnumber,thenameofcommodity,
quantity,thenameofthecarryingvessel,theage,nationality,and
particularsofthecarryingvessel,theexpecteddateofloading,the
expectedtimeofarrivalattheportofdestination,thename,telexand
cableaddressofthecarrier.

15.6Forcargolotsover1,000M/Teach,oranyotherlotslessthan
1,000metrictonsbutidentifiedbytheBuyer,theMasterofthecarrying
vesselshallnotifytheBuyerrespectively7(seven)daysand24
(twenty-four)hourspriortothearrivalofthevesselattheportof
destination,bytelexorcableaboutitsETA(expectedtimeofarrival),
contractnumber,thenameofcommodity,andquantity.

15.7IfgoodsaretobeshippedperlinervesselunderlinerBillof
Lading,thecarryingvesselmustbeclassifiedasthehighest____________
orequivalentclassaspertheInstituteClassificationClauseandshall
besomaintainedthroughoutthedurationoftherelevantBillofLading.
Nevertheless,themaximumageofthevesselshallnotexceed20yearsat
thedateofloading.Thesellershallbeartheaverageinsurancepremium
forlinervesselolderthan20years.Undernocircum-stancesshallthe
Buyeracceptvesselover25yearsofage.
15.8Forbreakbulkcargoes,ifgoodsareshippedincontainersbythe
SellerwithoutpriorconsentoftheBuyer,acompensationofacertain
amounttobeagreeduponbybothpartiesshallbepayabletotheBuyerby
theSeller.

15.9TheSellershallmaintainclosecontactwiththecarryingvessel
andshallnotifytheBuyerbyfastestmeansofcommunicationaboutanyand
allaccidentsthatmayoccurwhilethecarryingvesselisonroute.The
SellershallassumefullresponsibilityandshallcompensatetheBuyerfor
alllossesincurredforitsfailuretogivetimelyadviceornotification
totheBuyer.

16CIFTerms:
UnderCIFterms,besidesClause15C&FTermsofthiscontractwhich
shallbeappliedtheSellershallberesponsibleforcoveringthecargo
withrelevantinsurancewithirrespectivepercentage.

17AdviceofShipment:
Within48hoursimmediatelyaftercompletionofloadingofgoodson
boardthevesseltheSellershalladvisetheBuyerbycableortelexof
thecontractnumber,thenameofgoods,weight(net/gross)orquantity
loaded,invoicevalue,nameofvessel,portofloading,sailingdateand
expectedtimeofarrival(ETA)attheportofdestination.Shouldthe
BuyerbeunabletoarrangeinsuranceintimeowingtotheSeller’sfailure
togivetheabovementionedadviceofshipmentbycableortelex,the
Sellershallbeheldresponsibleforanyandalldamagesand/orlosses
attributabletosuchfailure.

18ShippingDocuments

18.ATheSellershallpresentthefollowingdocumentstothepaying
bankfornegotiationofpayment:
18.A.1Fullsetofcleanonboard,"freightprepaid"forC&F/CIFTerms
or"Freighttocollect"forFOB/FASTerms,OceanBillsofLading,madeout
toorderandblankendorsed,notifying___________attheportof
destination.

18.A.2Fivecopiesofsignedinvoice,indicatingcontractnumber,L/C
number,nameofcommodity,fullspecifications,andshippingmark,signed
andissuedbytheBeneficiaryofLetterofCredit.

18.A.3Twocopiesofpackinglistand/orweightmemowithindication
ofgrossandnetweightofeachpackageand/ormeasurementsissuedby
beneficiaryofLetterofCredit.

18.A.4Twocopieseachofthecertificatesofqualityandquantityor
weightissuedbythemanufacturerand/oraqualifiedindependentsurveyor
attheloadingportandmustindicatefullspecificationsofgoods
conformingtostipulationsinLetterofCredit.

18.A.5Oneduplicatecopyofthecableortelexadviceofshipmentas
stipulatedinClause17oftheTermsofDelivery.

18.A.6Aletterattestingthatextracopiesofabovementioned
documentshavebeendispatchedaccordingtotheContract.

18.A.7Aletterattestingthatthenationalityofthecarryingvessel
hasbeenapprovedbytheBuyer.

18.A.8Therelevantinsurancepolicycovering,butnotlimitedtoat
least110%oftheinvoicevalueagainstallandwarrisksiftheinsurance
iscoveredbytheBuyer.

18.BAnyoriginaldocument(s)madebyrephotographicsystem,automated
orcomputerizedsystemorcarboncopiesshallnotbeacceptableunless
theyareclearlymarkedas"ORIGINAL."andcertifiedwithsignaturesin
handwritingbyauthorisedofficersoftheissuingcompanyorcorporation.

18.CThroughBillofLading,StaleBillofLading,ShortFormBillof
Lading,shallnotbeacceptable.

18.DThirdPartyappointedbytheBeneficiaryasshippershallnotbe
acceptableunlesssuchThirdPartyBillofLadingismadeouttotheorder
ofshipperandendorsedtotheBeneficiaryandblankendorsedbythe
Beneficiary.

18.EDocumentsissuedearlierthantheopeningdateofLetterof
Creditshallnotbeacceptable.

18.FInthecaseofC&F/CIFshipments,CharterPartyBillofLading
shallnotbeacceptableunlessBeneficiaryprovidesonecopyeachofthe
CharterParty,Master’sofMate’sreceipt,shippingorderandcargoor
stowageplanand/orotherdocumentscalledforintheLetterofCreditby
theBuyer.

18.GThesellershalldispatch,incareofthecarryingvessel,two
copieseachoftheduplicatesofBillofLading.InvoiceandPackingList
totheBuyer’sreceivingagent,_______________attheportofdestination.

18.HImmediatelyafterthedepartureofthecarryingvessel,the
SellershallairmailonesetoftheduplicatedocumentstotheBuyerand
threesetsofthesameto______________________________Transportation
Corporationattheportofdestination.

18.ITheSellershallassumefullresponsibilityandbeliabletothe
BuyerandshallcompensatetheBuyerforalllossesarisingfromgoing
astrayofand/orthedelayinthedispatchoftheabovementioned
documents.

18.JBankingchargesoutsidethePeople’sRepublicofChinashallbe
fortheSeller’saccount.

19IfthegoodsunderthisContractaretobedispatchedbyair,allthetermsandconditionsofthisContractinconnectionwithoceantransportationshallbegovernedbyrelevantairterms.
20Instructionleafletsondangerouscargo:
Fordangerousand/orpoisonouscargo,theSellermustprovide
instructionleafletsstatingthehazardousorpoisonousproperties,
transportation,storageandhandlingremarks,aswellasprecautionaryand
first-airmeasuresandmeasuresagainstfire.TheSellershallairmail,
togetherwithothershippingdocuments,threecopieseachofthesameto
theBuyerand___________________TransportationCorporationattheportof
destination.

21Inspection&claims:
Incasethequality,quantityorweightofthegoodsbefoundnotin
conformitywiththoseasstipulatedinthisContractuponre-inspectionby
theChinaCommodityImportandExportinspectionBureauwithin60days
aftercompletionofthedischargeofthegoodsattheportofdestination
or,ifgoodsareshippedincontainers,60daysaftertheopeningofsuch
containers,theBuyershallhavetherighttorequesttheSellertotake
backthegoodsorlodgeclaimsagainsttheSellerforcompensationfor
lossesuponthestrengthoftheInspectionCertificateissuedbythesaid
Bureau,withtheexceptionofthoseclaimsforwhichtheinsurersor
ownersofthecarryingvesselareliable,allexpensesincludingbutnot
limitedtoinspectionfees,interest,lossesarisingfromthereturnof
thegoodsorclaimsshallbebornebytheSeller.Insuchacase,the
Buyermay,ifsorequested,sendasampleofthegoodsinquestiontothe
Seller,providedthatsamplingandsendingofsuchsampleisfeasible.

22Damages:
Withtheexceptionoflatedeliveryornon-deliverydueto"Force
Majeure"causes,iftheSellerfailstomakedeliveryofthegoodsin
accordancewiththetermsandconditions,jointlyorseverally,ofthis
Contract,theSellershallbeliabletotheBuyerandindemnifytheBuyer
foralllosses,damages,includingbutnotlimitedto,purchaseprice
and/orpurchasepricedifferentials,deadfreight,demurrage,andall
consequentialdirectorindirectlosses.TheBuyershallneverthelesshave
therighttocancelinpartorinwholeofthecontractwithoutprejudice
totheBuyer’srighttoclaimcompensations.

23ForceMajeure:
NeithertheSellerortheBuyershallbeheldresponsibleforlate
deliveryornon-deliveryowingtogenerallyrecognized"ForceMajeure"
causes.Howeverinsuchacase,theSellershallimmediatelyadviseby
cableortelextheBuyeroftheaccidentandairmailtotheBuyerwithin
15daysaftertheaccident,acertificateoftheaccidentissuedbythe
competentgovernmentauthorityorthechamberofcommercewhichislocated
attheplacewheretheaccidentoccursasevidencethereof.Ifthesaid
"ForceMajeure"causelastsover60days,theBuyershallhavetheright
tocancelthewholeortheundeliveredpartoftheorderforthegoodsas
stipulatedinContract.

24Arbitration:
Bothpartiesagreetoattempttoresolvealldisputesbetweenthe
partieswithrespecttotheapplicationorinterpretationofanyterm
hereofoftransactionhereunder,throughamicablenegotiation.Ifa
disputecannotberesolvedinthismannertothesatisfactionofthe
SellerandtheBuyerwithinareasonableperiodoftime,maximumnot
exceeding90daysafterthedateofthenotificationofsuchdispute,the
caseunderdisputeshallbesubmittedtoarbitrationiftheBuyershould
decidenottotakethecasetocourtataplaceofjurisdictionthatthe
Buyermaydeemappropriate.Unlessotherwiseagreeduponbybothparties,
sucharbitrationshallbeheldin________,andshallbegovernedbythe
rulesandproceduresofarbitrationstipulatedbytheForeignTrade
ArbitrationCommissionoftheChinaCouncilforthePromotionof
InternationalTrade.Thedecisionbysucharbitrationshallbeacceptedas
finalandbindinguponbothparties.Thearbitrationfeesshallbeborne
bythelosingpartyunlessotherwiseawarded.

OurContractTemplateDatabaseiscompliedinaccordancewithlawsofP.R.China.ThisEnglishdocumentistranslatedaccordingtoitsChineseversion.Incaseofdiscrepancy,theoriginalversioninChineseshallprevail.