Standard Terms and conditions for sale of F.P. Cotton Bales

confirmation of the sale of cotton bales subject to the following terms and conditions

1. Contract for sale means non transferable specific delivery contract as defined in forward contract (Regulation) Act of 1952.

2. Date of contract means the date of conclusion of the deal irrespective of the date on which contract is reduced in writing. Due date of delivery shall be as stipulated in the contract.

3. Sale of cotton will be with reference to particular variety and grade shall be subject to availability of cotton as saleable. In case of availability of cotton sales will be treated as pucca sauda and no rejection will be permitted unless specifically agreed to and mentioned in the contract. Buyer will be shown two times of the bales contracted as far as possible for selection.

4. The contract shall be on spot basis i.e. the expenses upto the stage of loading the bales in vehicle/ cart (from the spot where bales are lying) shall be borne by the Federation. Sales Tax shall be paid by purchaser unless specifically agreed to otherwise.

5. The contract may be signed by managing director/ Jt. Managing Director/ General Manager (SS) Deputy General Manager (SS)/ Manager (Sales)/ Dy. Manager (SS) on behalf of Federation and by an authorised person on behalf of buyer.

6. Selection has to be completed within 10 days time from the conclusion of deal or within the time specifically agreed to and mentioned in the contract.

7. The buyer has to effect payment and take delivery of bales within the delivery period given from the date of (confirmation or deemed confirmation) contract. Failure on part of buyer to do so the contract is liable to be closed at the option of seller. In the event of such a closure the seller shall be entitled to resell the entire or balance quantity thereof at any time and by any manner it deems fit and at the same time reserving its right to recover any damages/ loss sustained by way of such resale including carrying charges as applicable w.e.f. the date following due date of delivery under the provisions of Sec. 40 and 41 of the Maharashtra Raw Cotton (Procurement processing and Marketing) Act of 1971 or under Section 91 to 96 of Maharashtra Co-operative Societies Act., 1960 for which buyer has no objection.

8. Buyer shall be free to take Knife sample from the bales at the time of weighment and in case it is revealed on such examination that the actual quality of cotton is inferior and buyer demands any allowance the same shall be decided amicably and if it could not be decided amicably the matter shall be referred to arbitration of The East India Cotton Association Ltd, Mumbai. the buyer shall, however not refuse delivery and shall in all cases take delivery of cotton with such allowance that shall be agreed to amicably or through arbitration.

9. Without prejudice of the provisions stated above. The Federation may carry or hold cotton on behalf of buyer for a maximum period of 30 days from the last date of delivery period subject to buyer complying with following conditions. Buyer shall request the seller to carry the cotton on his behalf/ account by written reequest before the expiry of due date of delivery accompanied by advance payment (by D.D) of 15% value of cotton and carrying charges as applicable for the defaulted period up to the estimated time for taking delivery. If payment is not made and delivery is not taken within such extended period also the federation may cause the  for failure of the advance payment inclusive of carrying charges and federation is at liberty to resell the cotton at any time and in any time and in any way it deems fit and to recover the loss if any sustained by way of such resale including carrying charges interest and other allied expenses incurred for conducting resale of cotton from the buyer. If the buyer fails to comply with this condition the provisions under this contract for closure of contract shall be invoked and operated automatically thus absolving federation of giving any notice or communication to the buyer.

10. After receipt of payment within due date the buyer shall be granted 7 days grace period for physical lifting and in case lifting is not completed within the grace period buyer shall be liable for the payment of late lifting charges @ Rs 1/- per bale per day for bales lying with Federation. Late Lifting charges shall be applicable from the next following day grace period to the actual day physical lifting.

11. Payment shall be accepted upto 4 pm on working days by D.D./pay slip made good for payment on any nationalised bank only unless otherwise agreed to and mentioned in contract.

12. In case as per request of buyer Federation is required to despatch goods on behalf buyer Federation shall not be liable for any delay or damage or loss in transit and usual carrying charges shall be charged for the period of delay as if the bales have been delivered on spot.

13. The sales tax shall be on buyer's account as applicable on the date of the sale.

14. In case buyer wants to make payment without weight it may be allowed on the basis of 49 candy for 100 standard bales.

15. This contract is subject to Mumbai Jurisdiction only.