Sample of bitumen contract

Sample of Bitumen Contract (60/70, 80/100, 85/100…)

Date:
Ref:

Between (Buyer):
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And (Seller):
………………………………………
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The Buyer agrees to buy, and the Seller agrees to sell, the goods below under these terms:

ARTICLE 1: OBJECT & DEFINITION

First, define key terms. For example:

• “USD Currency” means freely transferable U.S. dollars.

• “Metric Ton” equals 1000 kilograms.

• “TT” means telex transfer.

• “FOB” means Free on Board.

• “CIF” means Cost, Insurance & Freight.

• “Commodity” refers to the cargo shipped.

ARTICLE 2: COMMODITY

• Name: Bitumen 60/70, 80/100, or 85/100.

• Origin Country: UAE.

• Source: Petroleum bitumen refinery.

• Contract Type: One part.

ARTICLE 3: GUARANTEED PRODUCT SPECIFICATION

The Seller guarantees the following for 60/70 grade. Moreover, similar specs apply to 80/100 and 85/100.

ARTICLE 4: QUANTITY & PRICE

• Quantity: ______ MT (±5%).

• Unit Price: FOB Bandar Abbas, UAE at USD ______ per MT.

• Additionally, prices apply only during this spot contract based on current USD–UAE rates.

ARTICLE 5: DELIVERY

• Loading Port: Bandar Abbas, UAE.

• Partial shipment: Allowed.

• Moreover, Seller loads within 14 days from payment date.

ARTICLE 6: TERMS OF PAYMENT

• Buyer pays 30% advance via TT or cash.

• The remainder is due after Buyer receives:

  1. Quality & quantity certificate.

  2. Signed commercial invoice.

  3. Full negotiable “Shipped On Board” Bill of Lading.

  4. Certificate of Origin.

• Importantly, Buyer may reject non-spec cargo at Seller’s cost.

ARTICLE 7: BANKING INFORMATION

Buyer:

• Bank Name: ______

• Country: ______

• Account Name & Number: ______

• SWIFT Code: ______

Seller:

• Bank Name & Address: ______

• Account Name & Number: ______

• Branch: ______

Additionally, Buyer bears all his bank charges.

ARTICLE 8: SHIPMENT

• Buyer books containers and freight forwarder after paying advance.

• Then, Seller must load only 20ft containers.

• Also, Seller ensures containers are seaworthy and drums are secure.

ARTICLE 9: PACKING – DRUM SPECIFICATIONS

• Drum: New steel export grade, ≥0.6 mm thick, painted black.

• Net content: 178 kg–182 kg.

• Lids: Tightly fastened to prevent leaks.

ARTICLE 10: DRUM MARKINGS

• Seller prints Buyer’s markings in white on each drum.

• Also, pasted labels are unacceptable.

ARTICLE 11: WEIGHING, SAMPLING & ANALYSIS

• Buyer appoints an independent inspector (e.g., SGS, GEOCHEM).

• Furthermore, inspection fees at loading port are included.

• Inspector’s report is final and binding.

• Moreover, Buyer may attend weighing at own expense.

Inspector duties include:

• Quality and quantity report.

• Drum condition report (new, ≥0.6 mm, no dents, painted, labeled, correct weight, sealed lids).

• Container condition report (seaworthy, no damage or corrosion).

• Weight confirmation with tally sheets and seals.

• Additionally, inspector verifies dunnage (≥0.5 mm plastic sheet, 1.5 m up walls).

Finally, Buyer approves shipment only after receiving all three reports.

ARTICLE 12: APPLICABLE LAW

This contract follows UAE law.

ARTICLE 13: INSURANCE

Buyer insures the cargo from loading.

ARTICLE 14: PERFORMANCE GUARANTEE

Seller provides an unconditional bank guarantee for 3% of the invoice.
Therefore, Buyer may claim it if Seller fails to deliver.

ARTICLE 15: PENALTY FOR LATE DELIVERY

Seller must deliver on time.
Otherwise, Buyer charges USD 10,000 per late day.
Then, penalty deducts from payment.

ARTICLE 16: FORCE MAJEURE

Either party may be relieved due to force majeure.
Examples include disasters, war, strikes, epidemics, or refinery shutdown.
Also, party must notify within 7 days with documentation.
If force majeure lasts more than 60 days, either party may cancel.

ARTICLE 17: ARBITRATION

They resolve disputes by Singapore arbitration under English.
Also, arbitration costs go to the losing party.

ARTICLE 18: TITLE & RISK

Title transfers when Seller receives full payment and vessel loading completes.
Risk transfers when cargo crosses ship’s rail.

ARTICLE 19: LICENSES, TAXES & FEES

Seller pays all port licenses, taxes, and fees at loading.

ARTICLE 20: ASSIGNMENT

Neither party may assign this contract without written consent.
However, Seller may assign to a successor company after restructuring.

ARTICLE 21: NON‑CIRCUMVENTION & NON‑DISCLOSURE

Parties may not bypass or disclose terms.
Furthermore, prior deals do not affect this contract.

ARTICLE 22: GENERAL PROVISIONS

• Amendments require written agreement.

• Notices may go by fax, mail, or courier.

• Also, all docs must be in English or accompanied by approved translations.

• They sign two originals and initial every page.

• Liability limits exclude indirect or consequential losses.

ARTICLE 23: VALIDATION & ALTERATION

Contract becomes effective when signed by both parties.
Also, any change requires mutual written consent.

ARTICLE 24: ENTIRE CONTRACT

This document supersedes all prior agreements.
Moreover, no modifications count unless written and signed by both parties.

ARTICLE 25: PROCEDURE

They sign hard copies in person or via courier.
Then, Buyer issues LC by SWIFT per payment terms.

ARTICLE 26: SHIPPING TERMS & CLAUSES

They follow the shipping company’s terms.
Also, Seller pays demurrage at loading port.
Furthermore, Buyer pays at discharge port.

ARTICLE 27: OTHER TERMS

They apply the latest Incoterms 2000 for any conflicting FOB clauses.
Finally, they prepared this contract on September 8, 2012, and it remains valid from signing.