Effective 1st March 2016

Contract No.47
Copyright
THE GRAIN AND FEED TRADE ASSOCIATION

CONTRACT FOR THE DELIVERY OF GOODS BY INLAND WATERWAYS

CENTRAL AND EASTERN EUROPE
IN BULK
FOB TERMS
*delete/specify as applicable Date......................................

1 SELLERS ...........................................................................................................................................................................................................................
2
3 INTERVENING AS BROKERS................................................................................................................................................................................
4
5 BUYERS .............................................................................................................................................................................................................................
6 have this day entered into a contract on the following terms and conditions.
7
8 1. GOODS ....................................................................................................................................................................................................................
9
10 2. QUANTITY tonnes of 1000 kilograms, 5% more or less at
11 Buyers option, at contract price. In the event of more than one delivery being made, each delivery shall be
12 considered a separate contract, but the margin on the mean quantity sold shall not be affected thereby.
13 Each mark/parcel shall stand as a separate parcel.
14
15 3. PRICE ..............................................................................................................................per tonne of 1000 kilograms gross weight,
16
17 Delivered Free On Board Buyers' Barge(s) in ......................................................................................................................................
18
19 4. BROKERAGEper tonne, to be paid by Sellers on the mean contract quantity, goods
20 lost or not lost, contract fulfilled or not fulfilled unless such non-fulfilment is due to the cancellation of
21 the contract under the terms of the Prevention of Delivery Clause. Brokerage shall be due on the day
22 shipping documents are exchanged, or if the goods are not appropriated then brokerage shall be due on
23 the 30th consecutive day after the last day for delivery.
24
25 5. QUALITY ...............................................................................................................................................................................................................
26 Condition. Delivery shall be made in good condition.
27
28 6. PERIOD OF DELIVERY
29 Delivery during....................................................................................................................................................at Buyers' call.
30
31 Nomination of Barge. Buyers shall serve not less than .days notice of the name and probable
32 readiness date of the barge, and the estimated tonnage required. Buyers shall advise Sellers of any delay
33 in arrival of the barge and shall serve further notices 5 days, 3 days and 1 day before arrival of the barge.
34 Buyers have the right to substitute the nominated barge, provided that the replacement barge is able to
35 load approximately the same quantity and is for approximately the same estimated arrival time. The
36 original delivery period and any extension shall not be affected by a substitution. Provided the barge is
37 presented at the loading port in readiness to load within the delivery period, Sellers shall if necessary
38 complete loading after the delivery period, and carrying charges shall not apply. In case of re-sales a
39 provisional notice shall be passed on without delay, where possible, by telephone and confirmed on the
40 same day in accordance with the Notices Clause.
41 A barge presented for loading must be fit and suitable for the reception and carriage of the goods.
42 Should the barge fail to present at the loading place on expiry of the 3 days and 1days notices, then
43 Buyers are liable for extra storage and/or extra haulage and/or truck detention charges; such damages
44 to be proven if not mutually agreed.
45

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46 In any month containing an odd number of days the middle day shall be accepted as being in both halves of
47 the month, except for pricing purposes the middle day shall be considered to be in the first half of the
48 month.
49
50 7. LOADING
51 Loading port ...........................................................................................................................................................................................
52
53 Sellers must declare on .. days prior to commencement of the delivery period, an accessible and
54 navigable river port. Barge(s) to load as per custom of the port unless otherwise agreed. Bill of lading
55 shall be considered proof of delivery in the absence of evidence to the contrary.
56
57 8. EXTENSION OF DELIVERY
58 The contract period of delivery shall be extended by an additional period of not more than 10 consecutive
59 days, provided that Buyers serve notice claiming extension not later than the next business day following
60 the last day of the delivery period. In this event Sellers shall carry the goods for Buyers' account and all
61 charges for storage, interest, insurance and other such normal carrying expenses shall be for Buyers'
62 account, unless the barge presents in readiness to load within the contractual delivery period.
63 Any differences in export duties, taxes, levies between those applying during the original delivery period
64 and those applying during the period of extension, shall be for the account of Buyers. If required by Buyers,
65 Sellers shall produce evidence of the amounts paid. In such cases the Duties, Taxes and Levies Clause shall
66 not apply.
67
68 9. FREIGHT DOCUMENT
69 For the purposes of this contract a bill of lading includes a freight letter or bill of lading as is customarily
70 used on the waterway, which in the hands of the Receiver would enable the Receiver to take delivery of the
71 goods at the destination.
72
73 10. INSURANCE
74 Marine and war risk insurance including strikes, riots, civil commotions and mine risks to be effected by
75 Buyers with first class underwriters and/or approved companies. Buyers shall supply Sellers with
76 confirmation thereof at least 5 consecutive days prior to expected readiness of barge(s). If Buyers fail to
77 provide such confirmation, Sellers shall have the right to place such insurance at Buyers' risk and expense.
78
79 11. PAYMENT
80 (a) By cash in .....................................................................................................................................................................................................
81
82 against the following documents ..............................................................................................................................................................
83 (b) No obvious clerical error in the documents shall entitle Buyers to reject them or delay payment, but
84 Sellers shall be responsible for all loss or expense caused to Buyers by reason of such error, and Sellers
85 shall on request of Buyers furnish an approved guarantee in respect thereto.
86 (c) Amounts payable under this contract shall be settled without delay. If not so settled, either party may
87 notify the other that a dispute has arisen and serve a notice stating his intention to refer the dispute to
88 arbitration in accordance with the Arbitration Rules.
89 (d) Interest. If there has been unreasonable delay in any payment, interest appropriate to the currency
90 involved shall be charged. If such charge is not mutually agreed, a dispute shall be deemed to exist which
91 shall be settled by arbitration. Otherwise interest shall be payable only where specifically provided in
92 the terms of the contract or by an award of arbitration. The terms of this clause do not override the
93 parties contractual obligation under sub-clause (a).
94
95 12. EXPORT LICENCE
96 EC Export Licence if required, to be obtained by Buyers provided Buyers are an EU member, otherwise to
97 be obtained by Sellers. For other countries export licence if required, to be obtained by Sellers.
98
99 13. DUTIES, TAXES AND LEVIES ON GOODS
100 Any EC export duties, taxes, levies, and refunds etc present or future in the country of origin, shall be for
101 the account of the holder of the Export Licence, otherwise national duties and taxes, present or future shall
102 be for Sellers' account. For other countries any duties, taxes, levies, and refunds etc, present or future in the
103 country of origin, shall be for Sellers' account.
104
105 14. PREVENTION OF DELIVERY
106 Event of Force Majeure - Event of Force Majeure" means (a) prohibition of export or other executive or
107 legislative act done by or on behalf of the government of the country of origin or of the territory where
108 the port or ports named herein is/are situate, restricting export, whether partially or otherwise, or (b)
109 blockade, or (c) acts of terrorism, or (d) hostilities, or (e) strike, lockout or combination of workmen, or

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110 (f) riot or civil commotion, or (g) breakdown of machinery, or (h) fire, or (i) Act of God, or (j)
111 unforeseeable and unavoidable impediments to transportation or navigation, or (k) any other event
112 comprehended in the term "force majeure".
113
114 Should performance of this contract be prevented, whether partially or otherwise, by an Event of Force
115 Majeure, the performance of this contract shall be suspended for the duration of the Event of Force
116 Majeure, provided that Buyers/Sellers (the affected party) shall have served a notice on the other party
117 within 7 consecutive days of the occurrence or not later than 21 consecutive days before
118 commencement of the period of delivery, whichever is later, with the reasons therefor.
119
120 If the Event of Force Majeure continues for 21 consecutive days after the end of the period of delivery,
121 then Sellers/Buyers (the non-affected party) have the option to cancel the unfulfilled part of the contract
122 by serving a notice on the other party not later than the first business day after expiry of the 21 day
123 period.
124
125 If this option to cancel is not exercised then the contract shall remain in force for an additional period of
126 14 consecutive days, after which, if the Event of Force Majeure has not ceased, any unfulfilled part of the
127 contract shall be automatically cancelled.
128
129 If the Event of Force Majeure ceases before the contract or any unfulfilled part thereof can be cancelled,
130 Buyers/Sellers shall notify Sellers/Buyers without delay that the Event of Force Majeure has ceased. The
131 period of delivery shall be extended, from the cessation, to as much time as was left for delivery under
132 the contract prior to the occurrence of the Event of Force Majeure. If the time that was left for delivery
133 under the contract is 14 days or less, a period of 14 consecutive days shall be allowed.
134
135 The burden of proof lies upon the party claiming under this clause and the parties shall have no liability
136 to each other for delay and/or non-fulfilment under this clause, provided that the party relying on the
137 clause shall have provided to the other party, if required, satisfactory evidence justifying the delay or
138 non-fulfilment.
139
140 Ice
141 If transportation of the goods to the load port, or if loading, or if presentation of the vessel at the loading
142 port is prevented by reason of ice, at any time during the last 30 days of the delivery period, or at any time
143 during the delivery period if such be less than 30 days, then either party shall be entitled at the
144 termination of such ice to as much time, not exceeding 21 days, for delivery at such port(s) as was left for
145 delivery under the contract prior to when the prevention occurred, and in the event of the time left for
146 delivery under the contract being 14 days or less, a minimum extension of 14 days shall be allowed. In the
147 event of further ice preventing delivery or loading of the goods during the time by which the time of
148 delivery has been extended by reason of the operation of the provisions of the foregoing paragraph, the
149 additional extension shall be limited to the actual duration of such ice.
150
151 Buyers or Sellers, as the case may be, shall serve notice not later than 5 business days after the
152 commencement of ice or 5 business days after the commencement of the delivery period whichever is later
153 if they intend to claim an extension of time for delivery under this clause. If required by either party, the
154 other party must provide documentary evidence to establish any claim for extension under this clause.
155
156 15. NOTICES
157 All notices required to be served on the parties pursuant to this contract shall be served rapidly in
158 legible form. Methods of rapid communication for the purposes of this clause are defined and mutually
159 recognised as: - either telex, or letter if delivered by hand on the date of writing, or telefax, or E-mail or
160 other electronic means, always subject to the proviso that if receipt of any notice is contested, the
161 burden of proof of transmission shall be on the sender who shall, in the case of a dispute, establish, to
162 the satisfaction of the arbitrator(s) or board of appeal appointed pursuant to the Arbitration Clause, that
163 the notice was actually transmitted to the addressee. In case of resales/repurchases all notices shall be
164 served without delay by sellers on their respective buyers or vice versa, and any notice received after
165 1600 hours on a business day shall be deemed to have been received on the business day following. A
166 notice to the Brokers or Agent shall be deemed a notice under this contract.
167
168 16. NON-BUSINESS DAYS
169 Saturdays, Sundays and the officially recognised and/or legal holidays of the respective countries and any
170 days, which GAFTA may declare as non-business days for specific purposes, shall be non-business days.
171 Should the time limit for doing any act or serving any notice expire on a non-business day, the time so
172 limited shall be extended until the first business day thereafter. The period of delivery shall not be affected
173 by this Clause.
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175 17. WEIGHING
176 Final at time and place of loading, as per GAFTA registered superintendent certificate at Sellers choice
177 and expense. Buyers have the right to attend at loading. The terms and conditions of GAFTA Weighing
178 Rules No.123 are deemed to be incorporated into this contract.
179
180 18. SAMPLING, ANALYSIS AND CERTIFICATES OF ANALYSIS
181 The terms and conditions of GAFTA Sampling Rules No. 124 are deemed to be incorporated into this
182 contract. Samples shall be taken at time and place of loading. The parties shall appoint superintendents,
183 for the purposes of supervision and sampling of the goods, from the GAFTA Register of Superintendents.
184 Unless otherwise agreed, analysts shall be appointed from the GAFTA Register of Analysts.
185
186 19. DEFAULT
187 In default of fulfilment of contract by either party, the following provisions shall apply: -
188 (a) The party other than the defaulter shall, at their discretion have the right, after serving notice on the
189 defaulter, to sell or purchase, as the case may be, against the defaulter, and such sale or purchase shall
190 establish the default price.
191 (b) If either party be dissatisfied with such default price or if the right at (a) above is not exercised and
192 damages cannot be mutually agreed, then the assessment of damages shall be settled by arbitration.
193 (c) The damages payable shall be based on, but not limited to, the difference between the contract price
194 and either the default price established under (a) above or upon the actual or estimated value of the goods
195 on the date of default established under (b) above.
196 (d) In all cases the damages shall, in addition, include any proven additional expenses which would directly
197 and naturally result in the ordinary course of events from the defaulter's breach of contract, but shall in no
198 case include loss of profit on any sub-contracts made by the party defaulted against or others unless the
199 arbitrator(s) or board of appeal, having regard to special circumstances, shall in his/their sole and absolute
200 discretion think fit.
201 (e) Damages, if any, shall be computed on the quantity called for, but if no such quantity has been
202 declared then on the mean contract quantity and any option available to either party shall be deemed to
203 have been exercised accordingly in favour of the mean contract quantity.
204
205 20. CIRCLE
206 Where Sellers re-purchase from their Buyers or from any subsequent buyer the same goods or part
207 thereof, a circle shall be considered to exist as regards the particular goods so re-purchased, and the
208 provisions of the Default Clause shall not apply. (For the purpose of this clause the same goods shall
209 mean goods of the same description, from the same country of origin, of the same quality, and, where
210 applicable, of the same analysis warranty, for delivery from the same port(s) of loading during the same
211 period of delivery). Different currencies shall not invalidate the circle.
212 Subject to the terms of the Prevention of Delivery Clause in the contract, if the circle is established before
213 the goods are delivered, or if the goods are not delivered, invoices based on the mean contract quantity,
214 or if the goods have been delivered invoices based on the delivered quantity, shall be settled by all
215 Buyers and their Sellers in the circle by payment by all Buyers to their Sellers of the excess of the Sellers'
216 invoice amount over the lowest invoice amount in the circle. Payment shall be due not later than 15
217 consecutive days after the last date for delivery, or, should the circle not be ascertained before the expiry
218 of this time, then payment shall be due not later than 15 consecutive days after the circle is ascertained.
219 Where the circle includes contracts expressed in different currencies the lowest invoice amount shall be
220 replaced by the market price on the first day for contractual delivery and invoices shall be settled
221 between each Buyer and his Seller in the circle by payment of the differences between the market price
222 and the relative contract price in the currency of the contract.
223 All Sellers and Buyers shall give every assistance to ascertain the circle and when a circle shall have been
224 ascertained in accordance with this clause it shall be binding on all parties to the circle. As between
225 Buyers and Sellers in the circle, the non-presentation of documents by Sellers to their Buyers shall not be
226 considered a breach of contract. Should any party in the circle prior to the due date of payment commit
227 any act comprehended in the Insolvency Clause of this contract, settlement by all parties in the circle shall
228 be calculated at the closing out price as provided for in the Insolvency Clause, which shall be taken as a
229 basis for settlement, instead of the lowest invoice amount in the circle. In this event respective Buyers shall
230 make payment to their Sellers or respective Sellers shall make payment to their Buyers if the difference
231 between the closing out price and the contract price.
232
233 21. INSOLVENCY
234 If before the fulfilment of this contract, either party shall suspend payments, notify any of the creditors that
235 he is unable to meet debts or that he has suspended or that he is about to suspend payment of his debts,
236 convene, call or hold a meeting of creditors, propose a voluntary arrangement, have an administration
237 order made, have a winding up order made, have a receiver or manager appointed, convene, call or hold a
238 meeting to go into liquidation (other than for re-construction or amalgamation), or have a Bankruptcy

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239 Petition presented against him (any of which acts being hereinafter called an "Act of Insolvency") then the
240 party committing such Act of Insolvency shall forthwith serve a notice of the occurrence of such Act of
241 Insolvency on the other party to the contract and upon proof (by either the other party to the contract or
242 the Receiver, Administrator, Liquidator or other person representing the party committing the Act of
243 Insolvency) that such notice was thus served within 2 business days of the occurrence of the Act of
244 Insolvency, the contract shall be closed out at the market price ruling on the business day following the
245 serving of the notice. If such notice has not been served, then the other party, on learning of the occurrence
246 of the Act of Insolvency, shall have the option of declaring the contract closed out at either the market price
247 on the first business day after the date when such party first learnt of the occurrence of the Act of
248 Insolvency or at the market price ruling on the first business day after the date when the Act of Insolvency
249 occurred.
250 In all cases the other party to the contract shall have the option of ascertaining the settlement price on the
251 closing out of the contract by repurchase or re-sale, and the difference between the contract price and the
252 re-purchase or re-sale price shall be the amount payable or receivable under this contract.
253
254 22. DOMICILE
255 This contract shall be deemed to have been made in England and to be performed in England,
256 notwithstanding any contrary provision, and this contract shall be construed and take effect in accordance
257 with the laws of England. Except for the purpose of enforcing any award made in pursuance of the
258 Arbitration clause of this contract, the Courts of England shall have exclusive jurisdiction to determine any
259 application for ancillary relief, (save for obtaining security only for the claim or counter-claim),the
260 exercise of the powers of the Court in relation to the arbitration proceedings and any dispute other than a
261 dispute which shall fall within the jurisdiction of arbitrators or board of appeal of the Association pursuant
262 to the Arbitration Clause of this contract. For the purpose of any legal proceedings each party shall be
263 deemed to be ordinarily resident or carrying on business at the offices of The Grain and Feed Trade
264 Association, England, (GAFTA) and any party residing or carrying on business in Scotland shall be held to
265 have prorogated jurisdiction against himself to the English Courts or if in Northern Ireland to have
266 submitted to the jurisdiction and to be bound by the decision of the English Courts. The service of
267 proceedings upon any such party by leaving the same at the offices of The Grain and Feed Trade
268 Association, together with the posting of a copy of such proceedings to his address outside England, shall
269 be deemed good service, any rule of law or equity to the contrary notwithstanding.
270
271 23. ARBITRATION
272 (a) Any and all disputes arising out of or under this contract or any claim regarding the interpretation or
273 execution of this contract shall be determined by arbitration in accordance with the GAFTA Arbitration
274 Rules, No 125, in the edition current at the date of this contract; such Rules are incorporated into and
275 form part of this Contract and both parties hereto shall be deemed to be fully cognisant of and to have
276 expressly agreed to the application of such Rules.
277 (b) Neither party hereto, nor any persons claiming under either of them shall bring any action or other
278 legal proceedings against the other in respect of any such dispute, or claim until such dispute or claim
279 shall first have been heard and determined by the arbitrator(s) or a board of appeal, as the case may be,
280 in accordance with the Arbitration Rules and it is expressly agreed and declared that the obtaining of an
281 award from the arbitrator(s) or board of appeal, as the case may be, shall be a condition precedent to the
282 right of either party hereto or of any persons claiming under either of them to bring any action or other
283 legal proceedings against the other of them in respect of any such dispute or claim.
284 (c) Nothing contained under this Arbitration Clause shall prevent the parties from seeking to obtain
285 security in respect of their claim or counterclaim via legal proceedings in any jurisdiction, provided such
286 legal proceedings shall be limited to applying for and/or obtaining security for a claim or counterclaim,
287 it being understood and agreed that the substantive merits of any dispute or claim shall be determined
288 solely by arbitration in accordance with the GAFTA Arbitration Rules, No 125.
289
290 24. INTERNATIONAL CONVENTIONS
291 The following shall not apply to this contract: -
292 (a) The Uniform Law on Sales and the Uniform Law on Formation to which effect is given by the Uniform
293 Laws on International Sales Act 1967.
294 (b) The United Nations Convention on Contracts for the International Sale of Goods of 1980.
295 (c) The United Nations Convention on Prescription (Limitation) in the International Sale of Goods of 1974
296 and amending protocol of 1980.
297 (d) Incoterms.
298 (e) Unless the contract contains any statement expressly to the contrary, a person who is not a party to
299 this contract has no right under the Contract (Rights of Third Parties) Act 1999 to enforce any term of it.

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Sellers .............................................................................................................. Buyers .........................................................................................................................................

Printed in England and issued by

GAFTA
THE GRAIN AND FEED TRADE ASSOCIATION
9 LINCOLNS INN FIELDS, LONDON WC2A 3BP

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