SampleSalesContractE.docx

SampleSalesContractE.docx

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SampleSalesContractE

DATED200[!

]

[SALESCONTRACTNAME]

-byandbetween-

[BUYERNAME]BUYER

-and-

[SELLERNAME]SELLER

TABLEOFCONTENTS

PRELIMINARYSTATEMENT1

1.

DEFINITIONSANDINTERPRETATION

1

2.

SCOPEOFCONTRACT

1

3.

CONTRACTPRICE

2

4.

PAYMENT

2

5.

DELIVERY

4

6.

PACKINGANDSHIPPINGMARKS

5

7.

INSPECTIONANDCLAIM

6

8.

INSTALLATION,COMMISSIONINGANDACCEPTANCEOFTHEEQUIPMENT

7

9.

WARRANTY

9

10.

SOFTWARELICENSE

10

11.

INTELLECTUALPROPERTYINDEMNITY

12

12.

TAXES

13

13.

REPRESENTATIONSANDWARRANTIES

13

14.

TERM

14

15.

TERMINATION

14

16.

CONFIDENTIALITY

15

17.

BREACHOFCONTRACT

16

18.

FORCEMAJEURE

16

19.

SETTLEMENTOFDISPUTES

17

20.

MISCELLANEOUSPROVISIONS

20

SCHEDULEA–DEFINITIONSANDINTERPRETATION

25

SCHEDULEB-SPECIALTERMS

29

ANNEX1-EQUIPMENT,SERVICES&DOCUMENTATIONLISTANDPRICES

31

ANNEX2-SPECIFICATIONS

32

ANNEX3-PROJECTSCHEDULE

33

ANNEX4-ENGINEERINGNOTESANDINSTALLATIONRESPONSIBILITIES

34

ANNEX5-EQUIPMENTACCEPTANCETESTPLAN

35

ANNEX6-SPECIMENOFACCEPTANCECERTIFICATE

36

CAVEATSANDDRAFTINGNOTES

37

[SALESCONTRACTNAME]

THISCONTRACT（"Contract"）ismadein[theContractLocation]and,ChinaontheContractDatesetoutinScheduleB（SpecialTerms）byandbetweentheBuyerandSellerspecifiedinScheduleB（SpecialTerms）.BuyerandSellershallhereinafterbereferredtoindividuallyasa"Party"andcollectivelyasthe"Parties".

PRELIMINARYSTATEMENT

Afterfriendlyconsultationsconductedinaccordancewiththeprinciplesofequalityandmutualbenefit,thePartieshaveagreedtoenterintoasalescontractinaccordancewithApplicableLawsandtheprovisionsofthisContract.

NowthePartiesHerebyAgreeasFollows:

1.DEFINITIONSANDINTERPRETATION

UnlessthetermsorcontextofthisContractotherwiseprovide,thisContractshallbeinterpretedinaccordancewithScheduleA,andeachofthetermsusedhereinshallhavethemeaningascribedtoitinScheduleA（DefinitionsandInterpretation）orScheduleB（SpecialTerms）asthecasemaybe.

2.SCOPEOFCONTRACT

2.1SupplyofEquipmentandServices

SellershallsupplytoBuyertheEquipmentandServices（asmorespecificallysetoutinAnnex1hereto）[fortheProject]inaccordancewiththetermsofthisContract.BuyershallpaySellertheContractPricesetoutinScheduleB（SpecialTerms）heretoandshallperformitsotherresponsibilitiesinaccordancewiththetermsofthisContract.

2.2ProjectSupervisors

SellerandBuyershalleachnominatearepresentativeasitsprojectsupervisorfortheProject（each,a“ProjectSupervisor”andjointly,the“ProjectSupervisors”）.EachProjectSupervisorshallbeauthorizedtodealwithalltechnicalmattersinconnectionwiththeEquipmentandtheServicesduringtheperiodfromtheEffectiveDateuptotheexpirationoftheapplicableWarrantyPeriods.DetailedarrangementsforbothregularlyscheduledandemergencycommunicationsbetweentheProjectSupervisorsshallbemadethroughfriendlyconsultationbySellerandBuyer.TheProjectSupervisorsshallfullycooperatetoresolvealltechnicalissueswhichmayariseinrespectoftheEquipmentandtheServices.IfthereisanydisputebetweentheProjectSupervisors,theyshallanalyzetheproblem,clarifytheresponsibilitiesand,tothefullestextentpossible,settleitattheInstallationSitesthroughfriendlyconsultation.DuringtheperiodofInstallationandCommissioning,theprogressofwork,themainworkdoneeveryweek,allproblemsarisingandthesuggestedsolution（s）shallbereportedweeklybytheProjectSupervisorstoSellerandBuyer.

2.3NoTransferofEquipment

BuyeracknowledgesandagreesthattheEquipmentconstitutesandembodiesthe

ConfidentialInformationandIntellectualPropertyofSeller.WithoutthepriorwrittenconsentofSeller,BuyermaynotdirectlyorindirectlytransfertheEquipmenttoanythirdpartyforconsiderationorwithoutconsideration.

3.CONTRACTPRICE

3.1Price

TheContractPriceissetoutinScheduleB（SpecialTerms）.

3.2ConsiderationforPrice

ThisContractPricecovers:

（a）theEquipment（includingHardwareandSoftwareLicense）andServices,

（b）ifSelleristhePartyResponsibleforShipment,thecostofshipmentofthe

HardwareandDocumentationtothePlaceofDelivery.

3.3CostsandExpenses

TheContractPricedoesnotcovercostsandexpensesthatareforBuyer’saccountunderthisContract,oranytaxes（includingbutnotlimitedtocustomsdutyandvalueaddedtax）payablebyBuyerinrespectofthisContract.

4.PAYMENT

BuyershallpaySellertheContractPriceonthefollowingterms:

4.1AdvancePayment

TheAdvancePaymentshallbepaidbyBuyertoSellerbywiretransfertoSeller’sDesignatedBankAccountwithinten（10）daysafterBuyerhasreceivedthefollowingdocumentsprovidedbySeller:

（a）Proformainvoicecoveringonehundredpercent（100%）oftheContractPriceinsixcopies;

（b）CommercialinvoicecoveringtheAdvancePaymentinsixcopies;and

（c）SightdraftcoveringtheAdvancePaymentintwocopies.

4.2DeliveryPayment

TheDeliveryPaymentshallbepaidbyBuyertoSellerunderanirrevocableletterofcredit

（“LetterofCredit”）.

Buyershallfifteen（15）dayspriortothescheduledDeliveryDateforfirstShipment,opentheLetterofCreditinfavorofSellerfortheDeliveryPaymentwithabankandinformandcontentacceptabletobothparties.TheLetterofCreditshallbeavailableagainstSeller'sdraft（s）atsightdrawnontheopeningbankfortheRelevantPercentageoftheinvoicepriceofeachShipmentaccompaniedbytheshippingdocumentsasfollows:

（a）Oneoriginalandtwocopiesof[AirwayBill][orotherdocumentoftitle]tobemarked“Freight[Collect][Prepaid]”,indicatingshippingmarkandconsignedtoBuyer.

（b）CommercialInvoicecoveringtheRelevantPercentageinthree（3）originalsandthree（3）copies,indicatingtheContractnumber,L/Cnumberandshippingmark;

（c）Packinglistinthree（3）originalsandthree（3）copiesissuedbySeller;

（d）One

（1）originalandone

（1）copyofaCertificateofQualityissuedbySeller;

（e）One

（1）copyoffax/emailtoBuyeradvisingparticularsofdeliveryimmediatelyafterdeliverytothecarrieratthePortofDeliveryhasbeenmade;

（f）One

（1）originalandone

（1）copyofcertificateoforigin;

（g）Two

（2）copiesofexportlicensesissuedbytherelevantexportauthorityortwo

（2）

copiesoftheconfirmationfromSellerthatnoexportlicenseisrequired.

（h）IfSelleristhePartyResponsibleforShipment,one

（1）copyofinsurancecertificatespecifyingtherisktypeasallriskcoveringonehundredandtenpercent（110%）oftheinvoiceamountforsuchShipment.

TheLetterofCreditshallbevaliduntilthetwenty-first（21st）dayafterthedateoflastscheduledShipment.

4.3PaymentonAcceptance

TheAcceptancePaymentfortheEquipmentshallbepaidbyBuyerbyT/Twithinfifteen

（15）daysafterBuyerhasreceivedthefollowingdocumentsfromSeller:

（a）CommercialinvoicecoveringtheAcceptancePaymentinthree（3）originalsandthree（3）copies;

（b）One

（1）originalandone

（1）copyoftheAcceptanceCertificateinrespectofthe

Project.

4.4ShipmentbySeller

SellershallcommenceShipmentonceBuyerhaspaidtheAdvancePaymentandopenedtheLetterofCreditasprescribedinArticles4.1and4.2.

4.5BankCharges

Eachpartyshallberesponsibleforitsownbankcharges.

4.6TitletoHardware

FulltitletoallHardwareshalltransferfromSellertoBuyeruponBuyer’spaymentinfulloftheContractPrice.

4.7LatePayments

IfBuyerfailstomakeanypaymentwithinthetimestipulatedinthisArticle4,thenBuyershallbeliabletopaytoSellerinterestonsuchunpaidamountsfromtheduedatethroughthedatesuchdelayedpaymentismadeinfull.TheapplicablerateofinterestshallbetheLIBORrateforsix-monthU.S.dollarloansplus2%.

5.DELIVERY

5.1DeliverySchedule

SellershalldelivereachShipmenttotheapplicablePlaceofDeliveryonorbeforetheapplicableDeliveryDatesetforthintheProjectSchedule.ThenumberofShipmentsshallnotexceedtheMaximumNo.ofShipmentssetforthinScheduleB（SpecialTerms）.IfthePlaceofDeliveryisdifferentfromtheInstallationSite,thenBuyershallberesponsiblefortransportationandinsuranceofeachshipmentfromthePlaceofDeliverytoInstallationSite.

5.2NotificationbeforeShipment

Atleasttwo

（2）weeksbeforemakingeachShipment,SellershallsendBuyerwrittennoticeofallrelevantshippingdetails,includingdescription,quantityandapproximateweightandsizeoftheEquipmentineachShipment,andotherinformationconsistentwithindustrypractice.

5.3EquipmentDelivery

AlltheEquipmentshallbeshippedincompletesets,exceptasotherwiseagreed,i.e.,anyspecialtoolsforinstallation,materialsandeasilyworn-outpartsshallbedispatchedalongwiththerelevantEquipment.

5.4NotificationAfterShipment

SellershallnotifyBuyerbyfaxoremailofallshippingdetailswithintwo

（2）workingdaysaftereachShipmenthasbeendispatched.Foreachlargeitem,ifany,overtwo

（2）metrictons,thegrossweight,measurement（LxWxH）,nameandpriceofsuchitemshallbeseparatelyindicated.

5.5CustomsClearanceDocuments

WithinareasonabletimeaftereachShipmenthasbeendispatched,Sellershallmailthe

CustomsClearanceDocumentsspecifiedinScheduleB（SpecialTerms）.

5.6Insurance

ThePartyResponsibleforShipmentshallberesponsibleforobtaininginsuranceduringshipmentfortheEquipmentandDocumentationinaccordancewithindustrypracticeatitssolecost.IfdamagetotheEquipmentoccursdurings