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

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

▪ 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.

▪ 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.

▪ The contract shall be on spot basis i.e. the expenses up to 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.

▪ 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 authorized person on behalf of buyer.

▪ 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.

▪ 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.

▪ 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.

▪ 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 request   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.

▪ 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.

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

▪ In case as per request of buyer Federation is required to dispatch 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.

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

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

▪ This contract is subject to Mumbai Jurisdiction only.

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