Agreement to Supply Goods as per Sample (India)
This agreement provides a template for the sale and delivery of specific goods (in this case, cotton) based on a sealed sample. It includes terms for quality inspection by a designated arbitrator, payment schedules, and consequences for failing to meet delivery timelines or quality standards.
AGREEMENT TO SUPPLY GOODS AS PER SAMPLE
THIS AGREEMENT is made this ____________ day of May in the year 20 _____,
BETWEEN
AA., aged about ____________. years,
son of ______________________________,
resident of _________________________________, (hereinafter called ‘‘the Seller’’) of the one part AND
______________________________________________ Cotton Mills Ltd., a company incorporated under the Indian Companies Act, 1956, with its registered office at ___________________________ (hereinafter called ‘‘the Purchasers’’) of the other part, AND WITNESSETH as under:
1. That the Seller shall supply to the Purchaser 100 quintals of pure white cotton of the variety known as __________________________________ according to the sample sealed by the parties and kept with the parties for reference in future in case of need.
2. That the total quantity of cotton shall be supplied within two months from the date hereof.
3. That the Purchaser shall pay for each instalment of cotton received, its full price within one week of receipt, after the same has been received by and checked for quality by Shri ________________________ of the Purchaser Mills. In case the said Shri ________________________ (hereinafter called ‘‘the Arbitrator’’) after checking the cotton rejects it as below standard or not of the variety contracted, then no price shall be paid by the Purchasers, whether the same has been forthwith removed by the Seller from the custody of the said Shri _____________________________ or not. In case the cotton after rejection is not removed within …… days after having been rejected, the Mills shall have the option to auction it at the risk and cost of the Seller without any reference to the Seller and shall deduct the cost of the auction and storage charges at Rs __________________ per quintal per day and make available the balance of the sale price to the Seller.
4. That the parties hereto shall accept the decision of the said Shri ____________________ of the Purchaser Mills in regard to the quality and standard of the cotton as final and binding.
5. That the period of …. months fixed for the supply of the entire quantity (not including any quantity rejected) shall be considered as of the essence of the contract and if the Seller fails to adhere to this condition, the Purchasers shall have the right to repudiate the contract and purchase the quantity not supplied from any person, party or firm at such price as may then be ruling and claim from the Seller the expenses and loss incurred or suffered by the Purchasers in so buying.
IN WITNESS whereof the above-named parties have respectively set their hands, Shri _________________ himself acting for the Seller and Shri ____________, the Manager Director acting for the Purchaser and sealing the contract with the seal of the Company the day and the year first above-written.
Sd. ____________
Seller.
Witnesses:
SIGNATURE. ____________
The.______.Cotton Mills Ltd.,
1. M.D
2. Seal of Purchaser.
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