12 - ICB-White Sugar-Section 9 (Contract For...

Part 3: Section 9 Contract Forms
Section 9: Contract Forms
Table of Forms
Agreement.................................................................................................................................2
Contract Security...................................................................................................................18
Advance Payment Security......................................................................................................19
Documente: Section 9 Page 1 of 22 Sugar Corp – Bid Doc. for the procurement of PLANTATION WHITE CANE SUGAR
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DRAFT CONTRACT FOR THE PURCHASE

OF 200,000/Two hundred thousand/ PLANTATION WHITE CANE SUGAR
FP/OT/01/SC/ 2021
Whereas the SUGAR CORPORATION (hereinafter referred to as the Buyer) is willing to
Purchase PLANTATION WHITE CANE SUGAR (hereinafter referred to as Sugar);
And
Whereas ------------------------------ (hereinafter referred to as the Seller) is willing to
sell the same pursuant to the terms and conditions of this Contract,
Now, therefore, the Buyer and the Seller hereto agree as follows: -
ARTICLE I
OBJECT OF THIS CONTRACT
I.1. The seller hereby agrees to sell and deliver 200,000 /Two hundred thousand/MT
PLANTATION WHITE CANE SUGAR. The quality and origin is stated hereunder
in the manner stated under the provisions of this agreement.
I.2. The Buyer agrees to buy, receive and pay for the sugar upon terms and conditions
specified herein under.
Article II
QUALITY OF THE SUGAR
The Seller shall supply the sugar with the following quality specifications: -
The Seller shall supply 200,000 /Two hundred thousand/MT of PLANTATION WHITE
CANE SUGAR with the following quality specifications:
S. No Specifications Parameters
1 Polarization OZ Minimum 99.70
2 Moisture % by mass 0.01 – 0.06
3 Sulphur dioxide mg/kg (Maximum) 20.0
4 Insoluble matter, % by mass (Maximum) 0.01
5 Color in ICUMSA unit ≤ 150
6 Cane sugar, free flowing medium grain
size 0.7-1.0mm
7 Conductivity ash, % by mass (Maximum) 0.04 max
8 Reducing sugars, % by mass (Maximum) 0.04
.
9 Crop Year 2020/21

ARTICLE III
ORIGIN
The origin of the sugar sold hereunder shall ----------------------

ARTICLE IV
PACKING
4.1. All sugar sold hereunder shall be packed in new sound polythene-lined
brown/white color polypropylene bags of 50 kilos net weight each suitable for
export with minimum tare weight of 160 grams.
4.2. Bag tare weight shall be checked on load port and discharge port compared with the
given samples at presence of Buyers and sellers surveyors/legally authorized. At the
time of checking at discharging port if any bags with less than 160 gram tare
weight, under quality and deviate from the samples upon delivery entitles to a
penalty of USD 30 (Thirty) /MT on the total unsolicited bagged sugar . No tolerance
shall be admitted under the specified standards. Unsolicited.
4.3. All The bag marks must show “Origin, Production Date, Expiry, Net Weight, name
of the product, and name of producer” All this information shall be printed on the
bags; a bag delivered this information with a Sticker is not acceptable.
4.4. Bag marks shall be in English Language. Other language markings are also
acceptable in addition to English.
4.5. The seller shall deliver, together with sugar delivery, 3% empty bags free of charges
which is similar to original bags.
ARTICLE V
SHIPMENT/ARRIVAL
5.1. The Seller shall ship and deliver the total quantity of 200,000 MT (Two hundred
thousand MT) of PLANTATION WHITE CANE SUGAR April, May, June, and July
2021 at Djibouti Port.
.
5.2. All specifications regarding the Weight, Quantity, Quality and Packing shall be
Checked and Ascertained at time of loading of the Sugar at loading port by an
internationally recognized independent inspection company appointed by the Buyer
for Seller's account, and at the discharge port for Buyer’s account.
5.3. Penalty of USD 5,000 /Five thousand/ per day for any delay on delivery up to the
maximum of USD 100,000 /One Hundred thousand/ shall be entailed which shall be
deducted from the PB or LC value and late delivery beyond 20 /Twenty/ days shall
lead to direct cancellation of contract and confiscate of full PB.
5.4. The Seller shall arrange for the Buyer Load port visit to Sellers account other than
sugar cost and provide transportation to the load port until the load is cleared out.
In case the visit cost is not used by the Buyer, the Seller would transfer the quoted
amount to the Buyer.
ARTICLE VI
LOADING/DISCHARGING
6.1. The Seller shall arrange for the Buyer Load port visit to Sellers account other than
sugar cost and provide transportation to the load port until the load is cleared out.
In case the visit cost is not used by the Buyer, the Seller would transfer the quoted
amount to the Buyer.
6.2. For CFR Free out Djibouti.

6.2.1. Where the Ethiopian Shipping Lines calls or agrees at the place of loading, sea
freight is to be by the Ethiopian Shipping Lines.
6.2.2. For CFR Free out Djibouti, chartering and discharge shall be as per the
freighting terms as detailed in Appendix “A3” attached to this contract.
6.2.3. For any shortage and damage of sugar at the discharging port the supplier
shall pay the price of sugar per ton.
6.3. For FOB Stowed Option
6.3.1. At each loading port, even if loading commence earlier, lay time for loading
to begin at 1400hours if written/cabled/telexed notice of readiness is tendered
.
to Agents before noon and at 0800 hours next working day if written /
cabled / telexed notice of readiness is tendered to Agents after noon.
6.3.2. Lay days at the average rate of --- MT calculated on gross weight provided
vessel can receive at this rate, per weather working day of 24 consecutive
hours. If the average rate is less than --- MT PWWD the seller shall pay the
demurrage as per the charter party, dispatch is half of demurrage.
6.3.3. At loading port(s) in the event of congestion Master has the right to tender
notice of readiness at the customary waiting place in ordinary office hours by
cable/telex to Agents, whether in berth or not, whether in port or not,
whether in free partique or not, whether customs cleared or not.
6.3.4. Demurrage rate for a vessel shall be as per the relevant charter party.
ARTICLE VII
INSURANCE
Insurance for the Sugar to be covered by Buyer from port of loading to Addis Ababa
warehouses via Djibouti port.
ARTICLE VIII
OBTAINING OF THE EXPORT PERMIT
8.1. The Seller shall obtain Bank permit, Customs declaration & other documents
relevant for the exportation of the sugar at its origin.
8.2. All expenses in connection with the obtaining of these permits shall be borne by the
seller.
8.3. The Seller shall be responsible for obtaining any necessary Export permit at its
origin and failure to obtain such permit shall not be sufficient grounding for force
majeure.
ARTICLE IX
IMPORT LICENSE
The Buyer shall be responsible for obtaining any necessary Import License like customs
declaration and relevant documents and failure to obtain such license shall not be
sufficient grounding for force majeure.
ARTICLE X
PRICE
.
10.1. For the sugar to be supplied under this contract, the Buyer shall pay USD ------------
Per ton FOB stowed, or USD -------------- per ton CFR Free out Djibouti in
accordance To Article 11 for the settlement of LC. Port visit cost in USD -----------.
Port visit Expenses are not part of sugar cost and it should be covered by the seller. If
the buyer does not send legally authorized for the loading port visit, the seller shall
transfer the cost of port visit to the buyer’s bank account.
10.2. The Said Prices are fixed & firm for the total quantity for the entire contract period.
ARTICLE XI
13. MODE OF PAYMENT
11.1. Buyer shall issue in favor of the Seller an irrevocable letter of Credit exclusively in
USD payable based on the agreed credit terms and conditions. Settlement shall be
effected under the Letter of Credit on submission of Original required shipping
documents as per the LC to the advising bank and presentation of the following
documents and conditions:-
11.1.1. Signed three original Commercial Invoice and three copies specifying FOB
Cost, Freight Charges and CFR cost, all copies certified by the Chamber of
Commerce.
11.1.2. One Original and One copy of Certificate of Origin issued by Chamber of
Commerce.
11.1.3. Full set of signed CLEAN ON BOARD Bills of Lading and three
nonnegotiable copies, Freight Prepaid, made out TO THEORDER of Letter
of Credit opening bank, notifying SUGAR CORPORATION.
11.1.4. One original bill of Lading to be sent directly to the opening bank within
10 days of the Bills of Lading date.
11.1.5. Packing list in three original copies.
11.1.6. Inspection Certificate issued by an Internationally Recognized
Independent Inspection Company covering Quantity, Weight, Quality
Analysis (the full detail of Specifications as per this contract article III),
marking and Packing of the goods and loading stowage issued in triplicate.
.
11.1.7. Health Certificate, issued by a competent Health Authority stating that the
sugar supplied is fit for human consumption to be issued in one Original.
11.1.8. Vessel Cleanliness Certificate issued prior to loading bagged sugar in one
original stating vessel holds found empty, dry, clean, free from foreign
odor, with no sign of live infestation and suitable to receive and carry
bagged sugar.
11.1.9. Radioactivity test Certificate issued by a competent authority in one
original.
11.1.10. Bill of Lading for 3% Empty Bags similar to the original bags, marked “Free
of Charge”
11.1.11. One original signed Freight Invoice issued by the carrier or its agent.
11.1.12. A certificate issued by a Captain or vessel owner, or agent or company of
vessel to be presented stating the following:

Name of vessel

Voyage NO.

Bill of Lading number and Date

Port of Loading

Port of Discharge

Number (Quantity) of packages

Gross Weight

Types of goods

Our LC Number

Name of the Carrier’s Agent

The classification of societies under which the vessel is registered and
the country of registration. The Certificate has to be signed and
stamped by the issuer declaring that all the information provided
above are correct and complete.
11.1.13. One original beneficiary’s confirmation certificate is required to confirm
the following conditions in the L/C.:- Bags are marked name of the
product, Name of the Producer, origin, Net weight, Expiry, Crop year.
11.2. Local bank charges in connection with the opening of the L/C shall be borne by the
Buyer.
.
11.3. Any foreign bank charges outside Ethiopia shall be borne by the Seller. (If Seller
requests for Confirmed Letter of Credit, all confirmation charges including
commission charge of the opening bank in connection with the confirmed LC shall
be covered by the Seller.)
11.4. The Letter of credit will be established within 5 working days after receipt of
signed contract, Proforma Invoice and 10% performance bond from the Seller,
however, delay in opening of the Letter of credit will result in extension of
shipment period for a reasonable period.
11.5. The Proforma Invoice issued by the seller shall specifically indicate the name and
address of bank through which the seller wishes to receive the LC & such bank
must also be acceptable to the Buyer's bank. The Proforma Invoice shall be
presented in the attached format.
11.6. Presentation of documents to the advising bank within 10 days from BL date.
11.7. Charter Party Bills of Lading and third party documents are acceptable.
11.8. Incase two or more B/L to be issued per a vessel, Commercial Invoice, Packing List;
Certificate of Origin & Health Certificate has to be splited in line with each bills of
lading quantity. Nonnegotiable copies of commercial invoice, BL, Freight Invoice,
Packing List, and Certificate of origin & Health Certificate are sent directly to the
Buyer within 7 days from signing of the Bills of Lading and other shipping
document will be sent within 7 days.
11.9. Seller shall issue Performance invoice immediately after receiving the award in
four originals showing cost break down for FOB value, Freight and C & F Free out
Djibouti, Origin of good and marked "Labeled as per Ethiopian Standard specified
on Article V under Packing.
11.10. Additional Conditions:
.
11.10.1. The final Commercial Invoice and Original Bills of Lading should indicate
Breakdown of the actual freight charges paid which must be supported by
the Carrier’s or its agent signed freight invoices.
11.10.2. Negotiation under the LC is restricted to FOB value plus the actual freight
Amount substantiated by the Carrier’s or its agent signed freight invoices.
But the Buyer shall not cover any exceeding freight cost over the Proforma
freight amount.
11.10.3. Freight amount on the Bills of Lading and Freight Invoices should be
indicated in the currency of the credit. If the actual freight amount be
indicated other than the currency of the LC, the exchange rate of that
currency against the LC Currency should be indicated.
ARTICLE XII
PERFORMANCE BOND
12.1. Seller shall issue in favor of the Buyer unconditional performance bond for 10% of
the contract price from commercial bank of Ethiopia with standard bank guarantee
format and content within 5 working days of the signing of this contract in
accordance with the specimen attached herewith. Any Claim by the Buyer shall be
deducted from the performance bond up on presentation of letter request to the
bank by the Buyer.
12.2. The Performance Bond shall be valid for 180 calendar days from the date of
opening of the LC; nevertheless, the seller shall promptly extend the validity to
cover agreed extension of the delivery by the sellers account.
12.3. The Buyer shall return the Performance bond or the balance thereof to the Seller
soon after the total delivery of sugar at Djibouti port and settlement of any
outstanding claim on the supplier.
ARTICLE XIII
TAXATION
13.1. Any existing or future levies in the nature of taxes on Sugar imposed by the
country of origin shall be for the account of Seller on FOB basis.
.
13.2. Any existing or future levies in the nature of taxes on Freight or Shipping imposed
by the country of origin shall be for the account of vessel owner on FOB basis.
13.3. Any existing or future levies in the nature of taxes whether on Sugar, Freight or
Shipping imposed by the country of origin shall be for the account of seller on
CFR basis,
13.4. Any existing or future levies in the nature of taxes whether on Sugar, Freight or
Shipping imposed by the country of destination shall be for the account of buyer
on CFR basis.
ARTICLE – XIV
FORCE MAJEURE
14.1. The performance of this contract is subject to Force majeure as defined by the
Rules of the Refined Sugar Association as fully as if the same has been expressly
inserted herein whether or not either or both of the parties are members of the
association.
ARTICLE – XV
DAMAGE/FRAUD
15.1. The Seller shall be responsible for actual and/or consequential damages in failing to
perform its obligations according to this contract.
15.2. The seller shall pay damages for any defect arising from the PLANTATION
WHITE CANE SUGAR which will be loaded at the loading port and discharged at
discharging port, whether or not the bill of loading specifies the shipment as
contained or said to contain.
ARTICLE XVI
SETTLEMENT OF DISPUTE
16.1. The parties shall attempt to amicably settle any dispute, controversy or claim
arising out of or relating to this Contract or the breach, or termination or invalidity
thereof.
.
16.2. In case amicable settlement is not possible, each party shall elect one arbitrator and
the two arbitrators shall elect an umpire to settle their dispute.
16.3. The language of the arbitration is English. The proceeding shall be governed by
Ethiopian Laws and in case of discrepancy with Ethiopian laws to cover the matter
Rules of Int’l Refined Sugar Association Rules will used for defining the gap; and
Place of arbitration shall be Ethiopia.
ARTICLE XVII
TITLE
Ownership Title of goods shall not pass on until the Seller has received full payment for
100% of the final contract value in accordance with the terms of the contract. In case of
defer payments; title of good shall pass after full delivery of the PLANTATION WHITE
CANE SUGAR at discharge port.
ARTICLE XVIII
LANGUAGE
The language of the contract and any correspondences thereof shall be English.
ARTICLE XIX
DOCUMENTS
This contract contains____ number of Articles and ____number of pages; was duplicated
in two original copies, Seller shall in good time give copies of documents to the Buyer.
ARTICLE XX
EFFECTIVE DATE
This contract shall become effective as of the date of signing of this contract on
date-------------- by the duly appointed legally authorized of the parties.
ARTICLE XXI
NOTICE & ADDRESSES
The Buyer The Seller
SUGAR CORPORATION
Kasanchise, near Development
Bank of Ethiopia
Kiad –med University College PLC
Building,
Josif Tito Street
Kirkos Sub – city Wereda 08
Telephone:+251115571006
Fax + -----------------
P.O.BOX 20034 – 1000
. Fax: +251115530046
Addis Ababa, Ethiopia
ARTICLE XXII
AMENDMENT
This contract shall only be amended by the agreement of the two parties.
In witness thereof, the parties hereto have affixed their respective signatures on this
_____________________2020.
On behalf of the Buyer

On behalf of the Seller
Name And Position and signature Name and Position signature

___________________ ___________________
Witnesses
Name Address
Signature
1.___________________ _________________ ______________
2. ___________________ _________________ ______________.
3. ___________________ _________________ ______________.
.
Appendix A3
FREIGHTING TERMS FOR BAGGED SUGAR
1. TYPE OF VESSEL
a. Tween deck vessel with McGregor or similar hatch covers, with holds, the
ceilings, sides should be flush and free from any obstructions which might
damage the bags, such as frames, ribbing or battening.
b. Vessels to have a maximum of three decks with minimum height clearance
between the decks 2.3 meters.
2. DIMENSIONS
Maximum arrival of vessel should not exceed a draft of 12 meters at discharge port.
Any lighter age due to vessel’s draft exceeding 12 meters to be for owners’ account
and the time not to count as lay time.
3. HATCHES
a. Opening and closing of hatches to be for the account of the ship.
b. On completion of loading sugar into the lower hold of tween deck vessels all
Macgregor, or similar type tween deck hatch covers must be closed before the
balance of the sugar is loaded in the tween decks.
c. During discharge, pontoon, or similar type tween deck hatch covers may
either be opened fully or completely removed and stowed away from sugar so
as not to impede discharge.
4. AGE
Vessel maximum age 30 years at time of shipment shall be acceptable with overage
insurance premium and related local taxes for sellers account for vessel over 15 years
old.
5. VESSEL OVERAGE INSURANCE
Any overage vessel's insurance premium for vessel over 15 years old should be for
Seller's account and such premium shall be in line with Lloyds scale plus Ethiopian
Insurance Corporation local taxes levied on it.
.
6. LAY TIME
a. Notice of Readiness to be presented in writing during official working hours

as applicable at the discharge port Thursday, Friday, and legal/local holidays
always exempted.
b. Lay time start counting after the vessel get suitable berth and all entry
formalities
c. For discharge, even if discharging commences earlier, time shall commence to
count after vessel berthed at 1400hrs if NOR has been presented during
normal working hours before noon and at 0800hrs on the next working day if
NOR has been presented during normal working hours afternoon.
d. At discharge working time during Ramadan period shall be as per discharge
port time circular.
7. DISCHARGE RATE
a. The sugar shall be discharged using vessel’s own cranes at the average rate of
1500 metric ton per weather working day of 24 consecutive hours basis 5
holds and provided vessel can deliver at this rate and each hold equipped with
one electro hydraulic proper working crane, prorate reduced if fewer. But if
the sugar may not be distributed evenly in each hold at load port, the sugar
shall be discharged at the average rate of 1500 metric ton Per hold per crane
pwwd of 24 consecutive hours and in this case time allowed shall be
determined based on the commanding hatch/hold quantity. Time from
Thursday noon until Saturday 0800hrs and from 5PM on the day preceding a
holiday until 8AM the day after a holiday shall be excepted even if used.
b. Performing vessel to be fully geared with all gear capable of lifting a
minimum of 5 metric tons.
c. Vessel should own proper electro hydraulic working crane and able to
discharge simultaneously from all hatches using vessels gear.
d. Vessel with derrick cranes is not permitted. Shipment as part cargo is not
permitted.
e. Shore crane/shore gangway should be arranged by the vessel to the vessel
account in case of vessel gear failure.
.
8. VESSEL NOMINATION AND FIXTURE
a. Sellers to guarantee that the vessels will be highest class Lloyd’s registered
and with an international registered P&I Club.
b. Vessel should be ISM code certified or the owners or operators should hold
an ISM code document of compliance.
c. Vessel to be fully ISM/DOC, ISPS certified and complaint.
d. Prior to fully fixing the vessel her full details are to be forwarded by the seller
to the Buyer for prior approval of their suitability at discharge which not to be
unreasonably withheld, Buyer having 24 hours SFHEX for reply after receipt
of vessel nomination failing which the seller shall proceed with chartering.
e. Nomination to include vessel’s Name, Age, Class, P and I club, DWAT, cargo
quantity, construction (single/tweendeck), number of holds/hatches, details of
vessel gear, crane cycle time, crane speed, crane maximum outreach,
laydays/canceling dates, itinerary/ETA at load port and
demurrage/dispatch/detention rates, etc
f. Vessel agent at discharge port to be nominated by Buyer and appointed by
owners with owners paying the customary fee. Owners to put the agents in
funds prior to arrival of the vessel at discharge port.
g. Performing vessels to be classed Lloyds 100A1 or vessel shall be fully classed
with a member of the International Association of Classification of Societies
(IACS).
h. Vessel also to be in a position of a valid P and I certificate with a first class P
and I club and having all necessary and valid certification to discharge at
disport.
i. Any/all costs and/ or consequences of the vessel’s failure to comply with the
above are to be for seller’s account.
9. SHIFTING
a. All time employed in shifting anchorages or between berths within same port
and all time spent on anchorage due to shifting not to count as lay time, and
all shifting expenses to be for vessel owners’ account.
.
10. DEMURRAGE/DISPATCH
a. Demurrage/Dispatch rate for a vessel shall be as per the relevant vessel charter
party and in line with fixed values at the time of chartering as per the type and
size of vessel to apply which should be notified to Buyer before chartering the
vessel.
b. Dispatch to be half of the demurrage rate and payable on all working time
saved.
c. Demurrage to be payable by the Buyer to the seller per day or prorate for any
part of a day.
d. Demurrage/Dispatch to be settled within 15 days after completion discharge
and agreement of duly supported timesheets.
e. Provided a fully workable L/C is in place as per the contract, and if the
shipping documents are not received by the Buyer before the arrival of vessel,
the Seller shall instruct the vessel to allow discharge without original bills of
lading upon presentation of bank undertaking by the Buyer, failing which the
Buyer is not responsible for delay of vessel at discharge port due to the non-
availability of original shipping documents.
11. TAXES AND/ OR DUES
a. On cargo at destination to be for Buyers account.

b. On vessel and or freight at destination to be for owners account.
For the Buyer For the Seller
___________________ ___________________
.
PROFORMA INVOICE NO. -----------
COMMODITY: PLANTATION WHITE CANE SUGAR

The Seller shall supply PLANTATION WHITE CANE SUGAR with the following quality
specifications:
Ser.No Specifications Parameters
1 Polarization OZ Minimum 99.7
2 Moisture % by mass 0.01 – 0.06
3 Sulphur dioxide mg/kg (Maximum) 20
4 Insoluble matter, % by mass (Maximum) 0.01
5 Color in ICUMSA unit ≤ 150
6 Cane sugar, free flowing medium grain size 0.7 - 1mm
7 Conductivity ash, % by mass (Maximum) 0.04 max
8 Reducing sugars, % by mass (Maximum) 0.04
9 Crop Year 2020/21
QUANTITY : -------- MT (MAXIMUM)

UNIT PRICE : USD ----- PMT FOB
USD ----- PMT FREIGHT
USD ------ PMT CFR DJIBOUTI
USD ----- PORT VISIT
TOTAL AMOUNT: FOB USD ----

FREIGT USD ----
CFR DJIBOUTI USD ----
USD ----- PORT VISIT
ORIGIN: ------------
PACKING : PACKED IN NEW SOUND POLYTHENE-LINED BROWN/WHITE COLOR
POLYPROPYLENE BAGS OF 50 KILOS NET WEIGHT EACH SUITABLE FOR EXPORT WITH
MINIMUM TARE WEIGHT OF 160 GMS.
SHIPMENT : --------------------
PORT OF LOADING : ---------------------
PORT OF DISCHARGE : DJIBOUTI PORT
ADVISING BANK NAME : -------------------
ADVISING BANK ADDRESS : -------------------
SWIFT CODE : -------------------
ALL OTHER TERMS AND CONDITIONS WOULD BE AS PER THE CONTRACT NO. --------
DATED -
FOR (NAME OF THE SUPPLIER)
.
SIGNATURE
STAMP
Contract Security
(Unconditional Bank Guarantee)
Date: [insert date (as day, month, and year) of Bid Submission]
Procurement Reference Number: FP/ OT/ 01/ SC/ 2021
To: Sugar Corporation

Addis Ababa
WHEREAS [insert complete name of Supplier] (hereinafter “the Supplier”) has

undertaken, pursuant to Contract No. [insert number] dated [insert day and month],
[insert year] to supply [brief description of the Goods and Related Services] (hereinafter
“the Contract”).
AND WHEREAS it has been stipulated by you in the aforementioned Contract that the
Supplier shall furnish you with a security [insert type of security] issued by a reputable
guarantor for the sum specified therein as security for compliance with the Supplier’s
performance obligations in accordance with the Contract.
AND WHEREAS the undersigned [insert complete name of Guarantor], legally domiciled
in [insert complete address of Guarantor], (hereinafter the” Guarantor”), have agreed to
give the Supplier a security:
THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of
the Supplier, up to a total of [insert currency and amount of guarantee in words and
figures] and we undertake to pay you, upon your first written demand declaring the Supplier
to be in default under the Contract, without cavil or argument, any sum or sums within the
limits of [insert currency and amount of guarantee in words and figures] as aforesaid,
without your needing to prove or to show grounds or reasons for your demand or the sum
specified therein.
This security is valid until the [insert number] day of [insert month], [insert year].
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
758.
Name: Name:
In the capacity of In the capacity of
Signed: Signed:
Duly authorized to sign the bid for and on behalf of: [insert complete name of Bidder]
Dated on ____________ day of __________________, _______ [insert date of signing]
.
Section 9: Contract Forms
Table of Forms
Agreement.................................................................................................................................2
Contract Security.....................................................................................................................3
Advance Payment Security........................................................................................................4
.
Agreement
THIS AGREEMENT made the ............. day of ..............., 20 , between ..….………………..
………………………………. of …………………….. (Hereinafter “the Buyer the one part, and
……………………. of ………………… (Hereinafter “the Supplier”), of the other part:
WHEREAS the Procuring Entity invited bids for certain Goods and Related Services, viz.,
………………………………………………………. and has accepted a Bid by the Supplier for the
supply of those Goods and Related Services in the sum of …………
……………………………………………….. (Hereinafter “the Contract Price”).
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. In this Agreement words and expressions shall have the same meanings as are respectively
assigned to them in the Contract referred to.
2. The following documents shall be deemed to form and be read and construed as part of this
Agreement, viz.:
(a) The Special Conditions of Contract;

(b) The General Conditions of Contract;
(c) The Statement of Requirements;
(d) The Bid Submission Sheet and the Price Schedules submitted by the Supplier;
(e) The Buyer’s Notification to the Supplier of award of Contract; and
3. In consideration of the payments to be made by the Buyer to the Supplier as indicated in this
Agreement, the Supplier hereby covenants with the Purchaser to provide the Goods and
Related Services and to remedy defects therein in conformity in all respects with the
provisions of the Contract.
4. The Buyer hereby covenants to pay the Supplier in consideration of the provision of the
Goods and Related Services and the remedying of defects therein, the Contract Price or such
other sum as may become payable under the provisions of the Contract at the times and in
the manner prescribed by the Contract.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance
with the laws of …………………………….on the day, month and year indicated above.
Name ………………………………. in the capacity of ……………………………….
Signed by …………………………………………. for the Procuring Entity
Name ………………………………. in the capacity of ……………………………….
Signed by ……………………………………… for the Supplier
Witnesses
1. ---------------------
2. ---------------------
3. ---------------------
.
Contract Security
Procurement Reference Number: FP/ OT/ 01/ SC/ 2021

Addis Ababa
WHEREAS [insert complete name of Supplier] (hereinafter “the Supplier”) has

undertaken, pursuant to Contract No. [insert number] dated [insert day and month],
[insert year] to supply [brief description of the Goods and Related Services] (hereinafter
“the Contract”).
AND WHEREAS it has been stipulated by you in the aforementioned Contract that the
Supplier shall furnish you with a security [insert type of security] issued by a reputable
guarantor for the sum specified therein as security for compliance with the Supplier’s
performance obligations in accordance with the Contract.
AND WHEREAS the undersigned [insert complete name of Guarantor], legally domiciled
in [insert complete address of Guarantor], (hereinafter the” Guarantor”), have agreed to
give the Supplier a security:
THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of
the Supplier, up to a total of [insert currency and amount of guarantee in words and
figures] and we undertake to pay you, upon your first written demand declaring the Supplier
to be in default under the Contract, without cavil or argument, any sum or sums within the
limits of [insert currency and amount of guarantee in words and figures] as aforesaid,
without your needing to prove or to show grounds or reasons for your demand or the sum
specified therein.
This security is valid until the [insert number] day of [insert month], [insert year].
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
758.
Name: Name:
Signed: Signed:
.
Advance Payment Security

(If Applicable)
Procurement Reference No: FP/ OT/ 01/ SC/ 2021

Addis Ababa
In accordance with the payment provision included in the Contract, in relation to advance
payments, [insert complete name of Supplier] (hereinafter called “the Supplier”) shall
deposit with the Buyer a security consisting of [indicate type of security], to guarantee its
proper and faithful performance of the obligations imposed by said Clause of the Contract, in
the amount of [insert currency and amount of guarantee in words and figures].
We, the undersigned [insert complete name of Guarantor], legally domiciled in [insert full
address of Guarantor] (hereinafter “the Guarantor”), as instructed by the Supplier, agree
unconditionally and irrevocably to guarantee as primary obligor and not as surety merely, the
payment to the Buyer on its first demand without whatsoever right of objection on our part
and without its first claim to the Supplier, in the amount not exceeding [insert currency and
amount of guarantee in words and figures].
This security shall remain valid and in full effect from the date of the advance payment
received by the Supplier under the Contract until [insert day and month], [insert year].
Name: Name:
Signed: Signed:
.

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Part 3: Section 9 Contract Forms

Section 9: Contract Forms

Advance Payment Security......................................................................................................19

DRAFT CONTRACT FOR THE PURCHASE

9 Crop Year 2020/21

The origin of the sugar sold hereunder shall ----------------------

6.2. For CFR Free out Djibouti.

11.10. Additional Conditions:

On behalf of the Buyer

Name And Position and signature Name and Position signature

FREIGHTING TERMS FOR BAGGED SUGAR

a. Notice of Readiness to be presented in writing during official working hours

8. VESSEL NOMINATION AND FIXTURE

11. TAXES AND/ OR DUES

a. On cargo at destination to be for Buyers account.

For the Buyer For the Seller

PROFORMA INVOICE NO. -----------

COMMODITY: PLANTATION WHITE CANE SUGAR

QUANTITY : -------- MT (MAXIMUM)

TOTAL AMOUNT: FOB USD ----

PORT OF LOADING : ---------------------

PORT OF DISCHARGE : DJIBOUTI PORT

ADVISING BANK NAME : -------------------

ADVISING BANK ADDRESS : -------------------

SWIFT CODE : -------------------

FOR (NAME OF THE SUPPLIER)

To: Sugar Corporation

WHEREAS [insert complete name of Supplier] (hereinafter “the Supplier”) has

Section 9: Contract Forms

Advance Payment Security........................................................................................................4

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

(a) The Special Conditions of Contract;

Name ………………………………. in the capacity of ……………………………….

Signed by …………………………………………. for the Procuring Entity

Name ………………………………. in the capacity of ……………………………….

Signed by ……………………………………… for the Supplier

To: Sugar Corporation

WHEREAS [insert complete name of Supplier] (hereinafter “the Supplier”) has

Advance Payment Security

To: Sugar Corporation

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