Appendix 1.8 – Sales Contract Sample
Contract Reference: #2163
Subject: Food Aid DR Congo
Date: April 14, 2009
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CONTRACT FOR THE PURCHASE OF GOODS
REMINDER: THIS IS A SAMPLE. ALL SPECIFIC DETAILS SUCH AS COMMODITY TYPE AND
SPECIFICATIONS MUST BE CHANGED TO MATCH YOUR INDIVIDUAL PROEJCT.
BETWEEN:
BUYER:
Canadian Foodgrains Bank
400-393 Portage Ave
P.O. Box 767
Winnipeg, Manitoba R3C 2L4
Canada
Tel: (204)944-1993
Website: www.foodgrainsbank.ca
and
SELLER:
ABC Suppliers
Harare, Zimbabwe
Tel: 123 456 789
Email: 123@abcsuppliers.com
We herewith confirm having purchased from you, on behalf of our partner, in Zimbabwe Meal, Beans,
and Oil divided in the parcels as per below:
LOT
AA
AB
AC
AD
BA
BB
BC
BD
CA
CB
CC
CD
COMMODITY
Maize
Maize
Maize
Maize
Beans
Beans
Beans
Beans
Oil
Oil
Oil
Oil
COUNTRY OF
ORIGIN
RSA
RSA
RSA
RSA
Uganda
Uganda
Uganda
Uganda
Zimbabwe
Zimbabwe
Zimbabwe
Zimbabwe
QUANTITY
250 MT
250 MT
250 MT
250 MT
50 MT
50 MT
50 MT
50 MT
15,000 ltr
15,000 ltr
15,000 ltr
15,000 ltr
PRICE / UNIT
(USD)
$500/MT
$500/MT
$500/MT
$500/MT
$1,050/MT
$1,050/MT
$1,050/MT
$1,050/MT
$2.50/ltr
$2.50/ltr
$2.50/ltr
$2.50/ltr
DESTINATION
DDP Gutu
DDP Bulawayo
DDP Gutu
DDP Bulawayo
DDP Gutu
DDP Bulawayo
DDP Gutu
DDP Bulawayo
DDP Gutu
DDP Bulawayo
DDP Gutu
DDP Bulawayo
DELIVERY
BEFORE/BETWEEN
25 - 30th April 2009
25 - 30th April 2009
25 – 30th June 2009
25 – 30th June 2009
25 - 30th April 2009
25 - 30th April 2009
25 – 30th June 2009
25 – 30th June 2009
25 - 30th April 2009
25 - 30th April 2009
25 – 30th June 2009
25 – 30th June 2009
Total Contract Value: USD $ 1,290,000
1. Specifications & Packaging Requirements:
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Appendix 1.8 – Sales Contract Sample
LOT A
Specifications for White Maize:
The Cartagena Protocol (Bio safety Protocol, additional to the Convention of Biodiversity) requires that
exporters /producers indicate whether the food items may contain GMOs (Genetically Modified
Organisms) or not. If supplied in grains, the product MUST NOT contain GMOs and certification is
required in conformity with the rules and regulations as set by the Government of Zimbabwe.
 Origin
To be indicated in the offer
 Grade
#2 or better
 Protein
11.0% min
 Moisture
12.5% max
 Broken maize
3.0% max
 Shrivelled maize
1.0% max
 Weevil damaged maize
1.0% max
 Other coloured maize
2.0% max
 Extraneous matter & trash
1.0% max
 Rotten/mouldy maize
1.0% max
 Germinated maize
None
 Total Defective maize
5.0% max
 Contamination
None
 Live insects
Free
 Dead insects
10/kg max
 Aflatoxin total
20 ppb max
 Dockage
Commercially Clean – LOCAL Ministry of
Agriculture Standards
 Intended Use
Human consumption at point of final
delivery
Packaging for White Maize:
 Bags
New woven polypropylene (PP) bags
 Size
of 50 kg content each
 Weight
min 85 g/m2
 PP bags
special “food grade” UV-treated
 Artwork
as per CFGB standards attached
An additional of 2% empty bags to be delivered at no extra costs.
LOT B
Specifications for Edible Beans:
 Origin
 Moisture
 Foreign Matter
 Other varieties
 Split or Broken
 Weevil/Holed Grains
 Live insects
 Dead insects
 Discoloured beans
 Total defective beans
 Hydrocyanic acid
 Salmonella
To be indicated in the offer
14.0% max
1.0% max
2.0% max
2.0% max
2.0% max
Free
2/kg max
3.0% max
9.0% max
20mg/kg max (before cooking)
absent on 25g sample
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Appendix 1.8 – Sales Contract Sample
 Aflatoxin
 Ochratoxin
 Cooking time
 Intended use
4 mcg/kg
5 mcg/kg
after soaking for 24 hours; 45 minutes
average (max 90 minutes)
Human consumption at point of final
delivery
Packaging for Edible Beans:
 Bags
New sacs made of polypropylene (PP)
Fit for export and multiple handling
 Size
bags of 20 kg content each
 Weight
min 85 g.m2
 PP bags
Special “food grade” UV-treated
 Stitching
double stitching at the opening
 Language
French
 Artwork
as per CFGB standards attached
An additional of 2% empty bags to be delivered at no extra costs
LOT C
Specifications for Edible Vegetable Oil:
Product must be free from abnormal flavour and odour and living insects/pests.
 Origin
To be indicated in the offer
 Appearance at ambient temp
Clear and shining
 Water and volatile matter
0.2% max
 Insoluble impurities
0.05% max
 Free Fatty Acids
0.15% max, expressed as oleic acid
 Soap
0.005%
 Peroxide value
1 milli equiv/kg max
 Specific weight
0.919 – 0.925 g/cm³
 Refractive index (at 40°C)
1.466 – 1.47
 Iodine value (MIJS)
58 – 140 g/100g
 Lead content
2 ppm max
 Colour (Lovibond)
5¼” (red/yellow) max 3.0/30
 Refractive density (water at 27°C)
0.910 – 0.950
 Vitamin A fortification
6,000 I.U./kg
 Authorized additives
max 75 mg of buyylated
hydroxytoluene (BHT-E-321)/kg of oil
 Intended use
Human consumption at point of final
delivery
 Shelf life
1 year at date of delivery
Packaging for Oil:
 Jugs
 Size
 Cartons
clean, new plastic bottle made of highdensity polyethylene, hermetically
sealed, HDPE to be UV-stabilized
5 litre plastic bottles
bottles to be packed in cartons
containing 4 x 5 litre bottles
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Appendix 1.8 – Sales Contract Sample
 Language
 Markings on the cartons
 Markings to include
English
As per CFGB standards on jugs and on
cartons
Date of Manufacturing / Expiry date
2. Inspection
2.1
2.2
2.3
An inspection company nominated by CFGB will inspect each tranche on quality at supplier’s
warehouse.
Any additional inspection should be accounted to the supplier.
In case goods are rejected, sellers will contractually be obliged to pay already incurred fees for
rejected goods.
3. Payment Terms
3.1
In full within 30 days, against delivery of all required documentation
Documents:










3.3
2 Commercial invoices; inclusive bank account details
Pro-forma invoice addressed to consignee
Phytosanitary certificate
Fumigation certificate –dated no later than 15 days prior to delivery- specifying place,
date, type of product, used, dosage, and time of exposure
Non-GMO certificate for maize issued by a competent authority and recognized by the
government of Zimbabwe
Certificate of Origin – (template will be provided)
Cargo report status on a weekly basis to the buyer
Cargo Receipt Certificate, stamped and signed for receipt by consignee and surveyor
All documents to be supplied by seller and, if necessary, legalised, inclusive invoice
All documents need to show “Humanitarian Aid Shipment”.
Allowance for late delivery and/or deductions for quality/quantity deviations shall be deducted from
your invoice before accounts are settled.
4. Performance Bond
4.1
The selected supplier(s) will be requested to provide CFGB with a performance bond equal to 6%
of the contract value.
4.2
In the event that a valid reason for not being able to produce a performance bond is provided, 6%
of the contract value will be deducted from the first invoice. This money will be paid at the
completion of the contract.
5. Termination
5.1
Either party has the right to terminate the contract by providing one week’s (7 days) notice in
writing in the event that agreed terms are violated.
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Appendix 1.8 – Sales Contract Sample
6. Force Majeure
6.1 Sellers shall not be held responsible in any way for partial or complete non-delivery arising from
circumstances falling under accepted definitions of Force Majeure e.g. strikes, riots, lockouts, civil
commotion, Act of God, and including export bans if any, imposed by the exporting countries as
described under the heading “origin” above.
7. Governing Law and Disputes
7.1
7.2
7.3
This Agreement shall be governed by and interpreted according to the laws of Zimbabwe
Any dispute arising out of, or in connection with, the present Agreement, including any questions
regarding its existence, validity, or termination, may, if possible, be referred to and finally resolved
by arbitration in accordance with the arbitration laws of the land with the following provisions:
 The arbitration shall be held in Harare, Zimbabwe;
 As soon as is reasonably practicable in the circumstances and with a view to it being
completed within 21 business days after it is demanded;
 With only the legal and other representatives of the parties to the dispute present thereat
The arbitrator shall be, if the matter in dispute is principally:
 A legal matter, a practicing attorney of Zimbabwe, of at least 10 years standing;
 An accounting matter, a practising chartered accountant of Zimbabwe, of at least 10
years standing
Canadian Foodgrains Bank
ABC Suppliers
Signature
Signature
Printed Name
Printed Name
Title
Title
DATE:
DATE: ___________________
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