Agreement For Sale Of Future Goods Legal Draft Template

This Agreement is

made at ... the day of ... between Mr. A carrying on business at ...

hereinafter referred to as 'the Seller' of the One Part and Mr. B. carrying on

business at ... hereinafter referred to as 'the Buyer of the Other Part;1.

The

Seller agrees to sell to the Buyer and the Buyer agrees to buy from the Seller

the items of machinery mentioned in the Schedule hereunder.2.

The

Seller agrees to fabricate the said machines as per the sample shown and

specification given to the Buyer and approved by him and which sample is kept

apart by the Seller for Identification.3.

The

machines will be fabricated and supplied to the Buyer within a period of ...

months from the date hereof, time being essence of the contract.4.

The

delivery of the machines will be given by the Seller at the factory site of the

Seller at against payment of the price as hereinafter mentioned. The Buyer will

not he bound to take piecemeal delivery of any one or more machines and the

delivery must be of all the machines agreed to be sold.5.

The

price of each Item of the machines will be Rs... out of which the Buyer had

paid to the Seller a sum of Rs... as advance by way of earnest (receipt whereof

the Seller admits) and the balance will be paid in cash or by a Bank draft by

the Buyer to the Seller as aforesaid.6.

Before

taking delivery the Buyer will be entitled to examine the machines to verify

whether they are as per the said sample and of the quality and specifications

mentioned in the said Schedule. If they are not as per sample and quality and

specifications the Buyer will be entitled to refuse to take delivery or if

delivery is taken. to return the same to the Seller and in the latter case the

Seller will refund the amount of price paid to him by the Buyer forthwith.7.

It

will be the responsibility of the Buyer to remove the said machines from the

factory site at his own costs after they are offered for delivery. If the Buyer

fails to take delivery and to remove them as aforesaid, within two weeks from

the receipt of the notice from the Seller that the machines are ready for

delivery, the seller will be entitled to sell the same by auction at the

highest price available and in that case the Buyer will be liable to pay the

difference between the agreed price and the net sale price, as damages.8.

If

the Seller fails to give delivery within the said period of two months, the

Buyer will be entitled to cancel this contract and the Seller will refund the

said advance paid to him forthwith and 'Will also be liable to pay damages

being the difference between the agreed price and the market price prevailing

at the date of cancellation of the agreement. If the market price is, not

available then Seller will pay to the Buyer a sum of Rs... a liquidated

damages.9.

If

the Buyer, after taking delivery of the machines and putting them To use finds

that the machines or any one or more of them is or are defective, the Buyer

will be entitled to return the same and on the Buyer intimating to the Seller

accordingly it will be-the responsibility of the Seller to take back the

delivery of such defective machine or machines and refund the price thereof to

the Buyer. If the Seller fails to do so within two weeks from receipt of such

Intimation, the Buyer will be entitled to sell such defective machine or

machines for whatever price available or to redeliver them to the Seller. In

the former case the seller will be liable to pay the difference between the

agreed price and the net sale price as damages. In the latter case, the Buyer

will be liable to refund the agreed price plus the transport charges incurred

by the Buyer.10.

Any

dispute regarding this agreement including the dispute as to the quality of the

machines or any claim made by one against the other will be referred to

arbitration of one arbitrator if agreed upon or to two arbitrators one to be

appointed by each party and the arbitration will be- governed by the

Arbitration & Conciliation Act, 1996.