Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
AGREEMENT TO SUPPLY GOODS AS PER SAMPLE
THIS AGREEMENT is made this ______ day of ____________ 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 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 Purchasers 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 Purchasers 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 ____________________, 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 said period 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 Managing Director, acting for the Purchasers and sealing the contract with the seal of the Company — the day and the year first above-written.
Sd. ________________________
Seller
For ____________________ Cotton Mills Ltd.
Sd. ________________________
Managing Director
(Common Seal of the Company)
WITNESSES:
1. ________________________
2. ________________________
About this template
What is this template?
This document is a commodity supply contract specifically for bulk cotton based on a 'sale by sample' model. It contains unique procedures for the auction of rejected goods and designates a specific individual to act as the final arbiter of quality. It is not a general service level agreement or a framework agreement.
When should you use it?
Use this when the buyer needs to verify bulk raw materials against a physical reference sample before accepting delivery. Use a standard Sale of Goods Agreement if the purchase is based on technical specifications rather than a physical sample.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Supply of Goods | The Seller must supply 100 quintals of pure white cotton matching a sealed sample kept by both parties. |
| 2 | Delivery Timeline | The Seller is obligated to deliver the total quantity of cotton within two months of the agreement date. |
| 3 | Payment and Inspection | The Purchasers pay within one week of receipt after quality checking; rejected cotton may be auctioned at the Seller's cost. |
| 4 | Final Decision on Quality | The parties agree that the decision of a named representative of the Purchaser Mills regarding quality is final and binding. |
| 5 | Time of the Essence | Failure to meet the supply deadline allows the Purchasers to repudiate the contract and claim losses for replacement purchases. |
Who it's for
- a supplier providing raw cotton to a mill based on physical sample verification
- a manufacturer requiring strict quality inspection rights before paying for raw materials
- a buyer needing the right to auction rejected goods not removed within a set timeframe
How long it runs and how it's signed
How long
Runs until the work is done
Stated duration
two months
Signed by
Seller, Managing Director
Witness
Required
Notarisation
Not required
Also needed
Common Seal of the Company
Law it's drafted under
Refers to
Companies Act, 1956
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Thu Jul 9th, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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