Block 4. Contract form for the sale of Cement

(abridged)

LEAD-IN

¨ What is important to provide for in the contract when selling cement or other bulk goods?

¨ What is specific about cement? What clause should reflect it?

FOCUS 1

Subject of the Contract

The Seller has sold to the Buyer and the Buyer has bought from the Seller on the terms FOB Novorossiysk... metric tons (m/t) of Ordinary Grey Portland Cement 10% more or less at the Seller’s option, in bulk.

Quality

The quality of the Cement sold under the present contract shall correspond to the requirements of the British Standard BS 12 Part 2, 1978.

The Seller shall arrange three samples of Cement, seven kilos each, to be taken during and after the loading by the Chamber of Commerce and Industry of Russia, packed tightly, marked with the name of the vessel and the date of shipment and sent as follows:

1st - to the Buyer;

2nd - to the Master of the vessel;

3rd - to the Manufacturer.

The Seller shall advise the Buyer by fax of the number and date of thepostal receipt. The cost of sampling and postage shall be borne by the Seller.

Price

The net price for the Cement sold under the present Contract is... USD per m/t FOB Novorossiysk.

4. Delivery – Acceptance

The Cement sold under the present Contract is considered as deliveredby the Seller and accepted by the Buyer:

a) as to the quantity: as per the weight stated in the Bill of Lading and determined by a Draft Survey effected jointly by the Master of the vessel and/ or his agent, the Seller or the manufacturer of the Cement and/ or his agent, and certified by the Chamber of Commerce of Russia;

b) as to the quality: as per the Certificate of Quality issued by the Chamber of Commerce and Industry of Russia for each shipment;

c) as to the date of delivery: as per the date of the Bill of Lading.