Agreement for Sale of Ready Goods (India) by OLL
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Agreement for Sale of Ready Goods
THIS AGREEMENT is made at … this …. day ……. of Between Mr. A residing at … hereinafter referred to as the ‘Seller’ of the One Part and Mr. B residing at … hereinafter referred to as ‘the Buyer of the Other Part.
1. The Seller agrees to sell and the Buyer agrees to buy from the Seller one hundred bags of.,.. (hereinafter referred to as the ‘said goods’) at the price of Rs… per bag.
2. The goods agreed to be sold are at present lying An the godown of the Seller and the Buyer has examined the same and they have been marked for identification…
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3. The said goods will be despatched by the Seller to the Buyer at… by railway from … to … station and the Buyer will take delivery of the said goods from the Railway against payment of @he price as hereinafter mentioned.
4. On the said goods being delivered over to the Railway at the said … station the Seller will send the Railway receipt duly endorsed as well as a bill of exchange drawn on the Buyer in favour of the Seller’s banker at the town of… where the goods are to be delivered to the Buyer by the Railway and the same will be handed over by the said Bank to the Buyer endorsed in his name against the Buyer paying the price of the said goods, without any deduction.
5. Since the time the goods are delivered to the Railway at the place of despatch, they will be at the risk of the Buyer provided that. the Seller reserves his right, in the event of the Buyer failing to pay the price and to take delivery as aforesaid, to take possession of the goods and to sell the same by auction at the Buyer’s risk. In the event of the net sale price failing short of the agreed price the Buyer will be liable to pay the difference to the Seller as damages. However, In the event of the price fetched being more than the agreed price, the Seller alone will be entitled to that difference.
6. In the event of the said goods being lost or destroyed in course of transit the Buyer will be liable to the Seller to pay the said agreed price with Interest thereon at the rate of Rs… percent from date of despatch till payment.
7. The Seller shall insure the said goods for the period of transit against the risk of loss or destruction In the name of the Buyer and in the event of loss or destruction, the Buyer will be entitled to the insurance claim subject to the lien of the Seller for the sale price as aforesaid and the Buyer will be liable to accept and pay the bill of exchange drawn on him for the price.
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A straightforward agreement for the sale and purchase of specific, pre-identified goods ready for delivery. It outlines the process for railway transit, payment via a bill of exchange, insurance responsibilities, and terms for handling potential loss or damage during shipping.
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About this template
What is this template?
This is a commercial sale of goods contract specifically designed for 'ready goods' already in existence and inspected. It is not a contract for the manufacture of future goods or a simple retail receipt, as it contains specific clauses for railway transit and payment via bank endorsement.
When should you use it?
Use this template when selling bulk goods in India that require railway transportation and where the seller wants to retain a lien until payment is collected by a bank. Use a Supply of Goods Agreement instead for recurring orders or long-term vendor relationships.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Agreement to Sell | The Seller agrees to sell 100 bags of defined goods at a specified price in Rupees per bag. |
| 2 | Identification of Goods | Confirms the goods are currently located in the Seller's godown and have been marked for identification by the Buyer. |
| 4 | Delivery and Payment | The Seller sends a railway receipt and bill of exchange to a banker, who releases documents to the Buyer upon full payment. |
| 5 | Risk and Resale | Transfers risk to the Buyer upon delivery to the railway and permits the Seller to resell goods by auction if payment fails. |
| 7 | Insurance | The Seller must insure the goods in the Buyer's name for the transit period, subject to a lien for the sale price. |
| 8 | Default by Seller | Terminates the contract if dispatch does not occur within 8 days and makes the Seller liable for liquidated damages. |
| 9 | Arbitration | Mandates that any disputes be referred to arbitration according to the rules of a specified Association. |
Who it's for
- a seller in India disposing of 100 bags of identified stock currently held in a godown
- parties arranging the sale of goods where delivery is performed via railway transit and bank collection
- a buyer in India accepting risk of loss for goods during transit in exchange for insurance coverage
How long it runs and how it's signed
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