BLOCK 5 . EXPORT CONTRACT FOR THE SALE OF TIMBER

BLOCK 5. EXPORT CONTRACT FOR THE SALE OF TIMBER

(abridged)

LEAD-IN

¨ What clauses are to be covered by a standard contract for timber?

¨ What kinds of timber are sold most often?

 

FOCUS 1

Tokyo                                                                  November 20, 20___

 

__________, hereinafter referred to as THE SELLERS, on the one part, and Messrs.________, on the other part, have concluded the present contract as follows:

1. SUBJECT OF THE CONTRACT. The Sellers have sold and the Buyers have bought FOB port of Nakhodka 45, 000 c. m of unpacked Sawlogs, 10 per cent more or less at the Sellers’ option, hereinafter referred to as the Goods, in accordance with the Specification stipulated below.

 

The delivery of the Goods shall be effected by approximately equal lots within ____(year).

 

… … … … … … … … … … … … … … … … … … … … …

3. QUALITY. The quality should be in accordance with the technical condition and state standards which should be strictly observed.

 

Logs delivered under the contract will be of felling in and after the last year.

 

Logs to be delivered unbarked. The defects of quality allowed in any kind of the logs to be in accordance with the technical conditions attached hereto and made an integral part thereof.

… … … … … … … … … … … … … … … … … … … … …

5.PRICE. The price of logs to be delivered under the contract is fixed in US dollars per cubic meter in accordance with the Price-List of ______(company) for saw logs with shipment to Japan for the month of delivery plus possible extra for better quality to be agreed each month. Should the Sellers and the Buyers fail to agree upon prices the quantity to be delivered during the month concerned considered cancelled.

 

6. PAYMENT. The Buyers undertake to open an irrevocable confirmed Letter of Credit with International Bank, Moscow, Account No.... through a first class bank being correspondent of International Bank, in favour of the Sellers for 105% of the full value of the goods ready for shipment and additional amount covering charges and expenses as per Clause 7 thereof.

 

The Letter of Credit shall be opened by the Buyers within 30 days after the signing of this contract for the first lot to be delivered in … (year) with further extensions and increases covering following shipments under this contract.

 

Upon establishment of the Letter of Credit the Buyers shall immediately send to the Sellers by fax a copy thereof and shall inform of the number of the Letter of Credit, date of its establishment and amount.

 

The payments from the LC to be effected immediately upon the Sellers’ presentation to their Bank of the following documents:

a) original bills of lading – three copies;

b) invoice – one copy;

c) logs’ specification.

 

All expenses and charges, including those in connection with advice and the bank commission in connection with opening and/ or extension of the said LC to be paid by the Buyers. No other conditions except as herein expressly set forth to be included in the LC.

… … … … … … … … … … … … … … … … … … … … …

9. FORCE MAJEURE. Neither the Sellers nor the Buyers shall be liable to fulfill their obligation wholly or partly under the Contract due to fires, acts of elements, wars, military operations of any character, blockades, prohibitions of import or export or other causes beyond the control of the parties.

 

Should the above mentioned contingencies arise, time of fulfillment of the obligation by the party affected shall be postponed for the period corresponding to the interruption caused by force majeure.

 

If the delay through force majeure exceeds 45 days, the respective quantity shall be cancelled with the total quantity being reduced accordingly. The party affected by force majeure shall immediately cable the other party of commencement and c of force majeure.

 

Proof of the existence of force majeure occurred on The Sellers’ or The Buyers’ territory shall be sufficient when certified by the Chamber of Commerce of Russia, Moscow, and the Chamber of Commerce of Japan, Tokyo, respectively.

 

10. ARBITRATION. All disputes or differences which may arise out of or in connection with this Contract shall be referred, excluding jurisdiction of general courts, to International Commercial Court at the RF Chamber of Commerce in Moscow in accordance with the Rules of Procedure of the said court. The awards of the above court shall be final and binding upon the parties.

… … … … … … … … … … … … … … … … … … … … …

… … … … … … … … … … … … … … … … … … … … …

FOCUS 4. EXERCISES

FOCUS 5. WORKSHOP

PAYMENT.

The Buyers undertake to open an irrevocable confirmed Letter of Credit with International Bank, Moscow, Account No. 1745 through a first class bank being correspondent of International Bank.

 

The method of payment is the following: 10% is  advance payment, the remaining 90% - by LC.

 

CURRENCY CLAUSE.

Pay attention that the contract currency is dollars and the currency of payment is euro.

 

 

ACHIEVEMENT TEST

BLOCK 5. EXPORT CONTRACT FOR THE SALE OF TIMBER

(abridged)

LEAD-IN

¨ What clauses are to be covered by a standard contract for timber?

¨ What kinds of timber are sold most often?

 

FOCUS 1

Tokyo                                                                  November 20, 20___

 

__________, hereinafter referred to as THE SELLERS, on the one part, and Messrs.________, on the other part, have concluded the present contract as follows:

1. SUBJECT OF THE CONTRACT. The Sellers have sold and the Buyers have bought FOB port of Nakhodka 45, 000 c. m of unpacked Sawlogs, 10 per cent more or less at the Sellers’ option, hereinafter referred to as the Goods, in accordance with the Specification stipulated below.

 

The delivery of the Goods shall be effected by approximately equal lots within ____(year).

 

… … … … … … … … … … … … … … … … … … … … …

3. QUALITY. The quality should be in accordance with the technical condition and state standards which should be strictly observed.

 

Logs delivered under the contract will be of felling in and after the last year.

 

Logs to be delivered unbarked. The defects of quality allowed in any kind of the logs to be in accordance with the technical conditions attached hereto and made an integral part thereof.

… … … … … … … … … … … … … … … … … … … … …

5.PRICE. The price of logs to be delivered under the contract is fixed in US dollars per cubic meter in accordance with the Price-List of ______(company) for saw logs with shipment to Japan for the month of delivery plus possible extra for better quality to be agreed each month. Should the Sellers and the Buyers fail to agree upon prices the quantity to be delivered during the month concerned considered cancelled.

 

6. PAYMENT. The Buyers undertake to open an irrevocable confirmed Letter of Credit with International Bank, Moscow, Account No.... through a first class bank being correspondent of International Bank, in favour of the Sellers for 105% of the full value of the goods ready for shipment and additional amount covering charges and expenses as per Clause 7 thereof.

 

The Letter of Credit shall be opened by the Buyers within 30 days after the signing of this contract for the first lot to be delivered in … (year) with further extensions and increases covering following shipments under this contract.

 

Upon establishment of the Letter of Credit the Buyers shall immediately send to the Sellers by fax a copy thereof and shall inform of the number of the Letter of Credit, date of its establishment and amount.

 

The payments from the LC to be effected immediately upon the Sellers’ presentation to their Bank of the following documents:

a) original bills of lading – three copies;

b) invoice – one copy;

c) logs’ specification.

 

All expenses and charges, including those in connection with advice and the bank commission in connection with opening and/ or extension of the said LC to be paid by the Buyers. No other conditions except as herein expressly set forth to be included in the LC.

… … … … … … … … … … … … … … … … … … … … …

9. FORCE MAJEURE. Neither the Sellers nor the Buyers shall be liable to fulfill their obligation wholly or partly under the Contract due to fires, acts of elements, wars, military operations of any character, blockades, prohibitions of import or export or other causes beyond the control of the parties.

 

Should the above mentioned contingencies arise, time of fulfillment of the obligation by the party affected shall be postponed for the period corresponding to the interruption caused by force majeure.

 

If the delay through force majeure exceeds 45 days, the respective quantity shall be cancelled with the total quantity being reduced accordingly. The party affected by force majeure shall immediately cable the other party of commencement and c of force majeure.

 

Proof of the existence of force majeure occurred on The Sellers’ or The Buyers’ territory shall be sufficient when certified by the Chamber of Commerce of Russia, Moscow, and the Chamber of Commerce of Japan, Tokyo, respectively.

 

10. ARBITRATION. All disputes or differences which may arise out of or in connection with this Contract shall be referred, excluding jurisdiction of general courts, to International Commercial Court at the RF Chamber of Commerce in Moscow in accordance with the Rules of Procedure of the said court. The awards of the above court shall be final and binding upon the parties.

… … … … … … … … … … … … … … … … … … … … …

… … … … … … … … … … … … … … … … … … … … …

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