This Contract made on _________ , at_________, China, between _________ Co.with its principal office at_________,China(here in after called Party A),and _________ Co.with its principal office at_________,USA (hereinafter called Party B),
WITNESSETH:
Whereas Party B has machines and equipment,which are now used in Party B's manufacturing of steel wire rope,and is willing to sell to Party Athe machines and equipment;and
Whereas Party B agrees to buy the products,steel wire rope, made by Party Ausing the machines and equipment Party B supplies,in compensation of the price of the machines and equipment,and
Whereas Party A agrees to purchase from Party Bthe machines and equipment,and
Whereas Party Aagrees to sell to Party Bthe products ,the steel wire rope,in compensation of the price of Party B's machines and equipment;Now therefore,in consideration of the premises and convenants described hereinafter,Party A and Party B agree as follows:
1. Purchase Arrangement
1.1 Party A agrees to purchase from Party B the following commodity under the terms and conditions set out below:
Commodity:_________
Spcifications:_________
Capability:_________
1.2 Quantity:_________.
1.3 Price: On FOB _________basis.Unit Price:US _________;Total Price:US _________
1.4 Payment:
The price of the machines and equipment shall be compen sated with the products, the steel wire rope, manufactured by Party A using the machines and equipment. The payment of the total price shall be effected three times equally in 3 successive years,beginning in_________
1.5 Shipment:
Time of shipment:_________
Port of loading:_________
Port of destination:_________
Shipping marks:_________
1.6 Insurance:
To be effected by Party A.
1.7 Inspection:_________
1.8 Guarantee:
Party B guarantees that the machines and equipment are unused,sophisticated and of best quality, and that the machines and equipment are capable of manufacturing the steel wire rope (_________ specifiications with a production of_________meters per hour.
2. Sales Arrangement
2.1 Party A sells to Party Bthe stell wire rope in compensation of the price of the machines and equipment Party B sells to Party A.
Commodity: _________.
Specifications:_________
2.2 Quantity:
_________meters of steel wire rope per year,of which the price shall be US _________$per annum.
2.3 Price:
The price of the steel wire rope shall be set on the basis of the prevailing price in the world market at the time when shipment is made.The price shall be based on CIF basis.
2.4 Shipment:
Shipment shall be made twice a year,in _________ and in _________,each for the value of_________
Port of loading:_________
Port of destination:_________
shipping marks:_________
2.5 Packing:
To be packed in wooden reels.
2.6 Paymnet:
Payment shall be effected by confirmed and irrevocable letter of credit in favour of Party A, payable at sight, allowing transhipment. The letter of credit shall reach Party A 15 days before the month of shipment and shall be valid for not less than 90 days.
The letter of credit shall be in strict accordance with the terms and conditions of the Contract. Otherwise ,Party B shall be held responsible for the delay in shipment and Party A may lodge claims against Party B for the losses arising therefrom. All the expenses arising from the amendments shall be for Party B's account.
2.7 INsurance:
To be couvered by Party A for 110% of the invoice value,covering W. A and War Risk.
2.8 Inspection:
The quality certificate issued by Party A shall be regarded as final. If, on arrival of the goods at the port of destination, Party B finds the quality not up to the spcifications mentioned above, Party B shall notify Party A within 45 days after arrival of the goods at the port of destination. Both Parties shall have consulations for a settlement of the matter in dispute.
3. Force Majeure
Party A or Party B shall not be held responsible for any failure or delay in delivery of the entire lot or a portion of the goods under the Contract as a result of any force majeure accident(s).
4. Arbitration
All disputes arising in connection with this Contract or in the execution thereof,should be settled amicably through negotiations. In case no settlement can be reached, the case in dispute shall then be submitted for arbitration in _________.The decision of the arbitration shall be accepted as final and binding upon both parties.
5. Governing Law
The formation, interpretation and performance of the Contract shall be governed by the laws of the People's Republic of China.
6. Original Text
The Contract is made, in English, in two originals, one for each party.
7. Duration
_________.
Party A(signature):_________ Party B(signature):_________
Date:_________ Date:_________