Contract Agreement

For the purchase of ‘Marble’

"This Purchase Contract" agreement is made on the 7 th day of March 2019, between:
Alemayehu Ketema General Contractor Address, Addis Ababa, Bole sub-city, woreda 07
House no.999 (hereinafter referred as "the Buyer" on one part;
And
BEAEKA General Business P.L.C, Addis Ababa, Ethiopia Addisu Gebeya Sheger Park Gulele
sub-city, Woreda 07, Tel: +251111275390 hereinafter referred as "the Seller" on the other hand.
Article 1
Object of the Contract
Whereas the Buyer desires to buy different kinds of Marble products for Oromia Sport Academy
project and the seller agreed with the buyer to supply the Marble products supply as per required
specifications and price.

Now, therefore, in consideration of the premises and mutual understandings herein contained, the
parties to the contract agreed as follows.
Article 2
Scope of the Contract
This contract is agreed by the parties mentioned above for the purchase “Marble products Supply”
whereby the seller agreed to sell the Marble products as per the sellers proforma offer MS/0339/12
dated 25/02/2020 and as per the conditions and requirements set forth in this contract.
This contract is comes into effect after the Marble products supply are get an approval by the
consultant. If the Marble products are not get the required approval by the consultant, the contract will be
cancelled by both parties without any notice and payment.
Article 3
Specification, Price and Terms of Payment
3.1 The specification and items of the materials is attached and annexed at the end of this contract through
proforma number MS/0339/12 dated 25/02/2020. The seller is agreed to sell and supply the materials
based on the specification attached on the annex.
3.2 The buyer agreed to pay the seller a total price of Birr 7,546,189.27 (Seven million five hundred forty six
thousand one hundred eighty nine birr and 27/100) including VAT which is "The Contract Price" payable
to the seller after the materials are approved by the consultant.
3.3 The contract price is including the transportation cost for the trucks that delivered the products and
loading of the products to the trucks.
3.4 40% of the contract price Birr 3,018,475.70 (Three million eighteen thousand four hundred seventy
five birr and 70/100 cents) including VAT shall be paid as an advance payment to the seller after the
materials get an approval by the consultant.
3.5 60% of the contract price Birr 4,527,713.57 (Four million five hundred twenty seven thousand seven
hundred thirteen birr and 57/100 cents) including VAT shall be paid after delivery and acceptance by the
buyer after 10 (ten) working days.
3.6 The seller shall give proportionate Post Dated Cheque for the buyer as a guarantee for the advance payment
he receive.
 3.7 Payments will be issued after the materials get an approval by the consultant. If the materials are not get the
required approval by the consultant, the contract will be cancelled by both parties without any notice and
payment. The seller will return the money back to the buyer that he received as the advance payment.
3.8 The supplier shall provide legal invoice (VAT) for the payment he received.
Article 4
Change Orders and Additional Supply

4.1 The buyer may order additional supply quantity of the materials by a written letter.
4.2 The cost of the additional quantity materials shall be equivalent to the specifications and price amount of
the item which attached as annexes in this contract.

Article 5
Standards and Delivery Terms
5.1 The materials to the supply under this contract shall conform to the standards and measurements
mentioned in the technical specifications.
5.2 Technical Specification refers to the technical specification(s) mentioned in the buyer attachment and in
the seller offer number MS/0339/12 dated 25/02/2020 and an attachment that attached on this contract.
5.3 The seller is obliged to make a “Third party warranty certificate, product catalogue, specifications and test
results” for the materials.
5.4 “Incidental Services” means those services ancillary to the supply of the goods including transportation
and insurance, and any other incidental services to the delivery of the goods and other such obligation of
the seller covered under the contract. The cost and the insurance is covered by the seller.

Article 6
Contract Amendments
6.1 No variation in or modification of the terms of the contract shall be made except by written amendment
signed by the parties to the contract.

Article 7
Inspection and Testing
7.1 The buyer or its representative and the consultant jointly shall inspect and/or test and weight the material to
check their conformity to the requirement of the specifications and measurements at no extra cost to the
buyer. The buyer may notify the seller in writing, in a timely manner, of the identity of the inspector
represented for the purpose.
7.2 After the material get an approval by the consultant, buyer or its representative and the seller or its
representative jointly shall inspect and/or to test and weight the remaining material to check their conformity
to the requirement of the specifications and measurements (based on the approval decision of the consultant)
at no extra cost to the buyer.
7.3 After the material gets an approval by the consultant, Should any inspected or tested materials/parts thereof is
defective or the buyer or the consultant finds it not to the specifications, the buyer shall reject the materials,
and the seller shall either replace the rejected materials or make alternation necessary to meet the technical
specification at no cost to the buyer. The replacements shall be effected within 15 (fifteen) calendar days after
receipt of notification for replacement issued by the buyer.

Article 8
 Transportation cost and Insurance
8.1 The seller will cover the cost of the transportation for the freight up to the point of delivery place.
8.2 Insurance will be the responsibility of the seller up to the point of delivery place.
8.3 The seller shall be responsible for all taxes, stamp duties, license fees, and other such levies imposed on the
materials up to the delivery to the buyer’s site and the later shall in no way be responsible.
Article 9
Delivery Place and Time
9.1 The delivery time of the goods to its destination shall be within 45 (Forty five) days from the contract is
signed and get an approval by the consultant.
9.2 The delivery place of the supply is at Oromia Regional State, Sululta city, Oromia Sport Academy site.
Article 10
Warranty
10.1 The seller shall be responsible for making goods supplied under this contract are new, unused and to the
most recent or current production. The seller further warrants that all the goods supplied under this contract
shall have no defective workmanship or free from any act of omission or defect.
10.2 The seller shall be responsible for making good any defect in or damage to any part of the materials,
which appear or occur at the time of delivery and the buyer shall promptly notify the seller in writing of any
claims arising under this warranty. Upon receipt of such notice the seller shall replace the goods within 15
(fifty) days if the defect or damage is not the fault of the buyer.

Article 11
Delays in the supplier’s performance
11.1 Deliveries of the materials and performance of services shall be made by the seller in accordance with the
time schedule.
11.2 If the seller fails to deliver the goods and performance of services as per agreed time, the buyer shall charge
0.1% of the total contract price value per day until the delivery is made in full.

Article 12
Force Majeure
12.1 The seller shall not be liable for termination of default if and to the extent that it’s delaying performance or
other failure to perform its obligation under the contract is the result of an event of Force Majeure.
12.2 If the force majeure situation arises, the seller shall promptly notify the buyer in writing of such condition
and the cause thereof. Unless otherwise directed by the buyer in writing, the seller shall continue to perform
its obligations under the contract as far as is reasonably practical, and shall seek all reasonable alternative
means for performance not prevented by the force majeure event without claiming any additional cost what
so ever at the end.

Article 13
Resolution of Dispute
13.1 The buyer and the seller shall make every effort to resolve amicable by direct and informal negotiation any
disagreement or dispute between them under or in connection with contract.
13.2 If, after thirty (30) days from the commencement of such information negations, the buyer and the seller
have been unable to resolve amicable a contract dispute, they have the right to claim in a court.

Article 14
 Applicable Law
14.1 The contract shall be executed in accordance with the laws of the Federal Democratic Republic of Ethiopia.
Article 15
Notices
15.1 Any notice given by one party to the other pursuant to this contract shall be sent to the other party in writing
or E-mail and confirmed in writing to the other party’s address specified in the contract.
15.2 A notice by effective when delivered or on the notices’ effective date, whichever is late.

Article 16
Adherence to Government Regulations, Directive
16.1 The seller shall strictly adhere to government regulations, directives and instructions in supplying the goods to
buyer. Failure to comply with the government regulation, directives and instruction shall be the sole
responsibility of the seller.

Article 17
Annexes
The description and items of the materials is attached and annexed at the end of this contract. All letters,
change orders, new orders are part and parcel of this contract. The letters and change orders are should be
read in line with this contract.

IN WITNESS whereof the parties hereto have caused this agreement in duplicate to be executed in
accordance with the respective laws of the Federal Democratic Republic of Ethiopia on the day and in the
year first above written.

For the Buyer For the Seller

Name: __________________________ Name:__________________________

Signature: _________________ Signature: _____________________
Date: _______________________ Date: _______________________

Witness

Name Signature

1. _______________________________ _______________________
2. _______________________________ _______________________
3. _______________________________ _______________________