Free FOB Sale of Goods Agreement Template India PDF/Word

About this agreement

Title: Agreement for Sale of Goods (F.O.B. Basis) Format

Are you searching for a professional Agreement for Sale of Goods (F.O.B. Basis) Format to secure your international trade deals? Our ready-to-use legal template ensures clarity in terms, minimizes disputes, and complies with Indian commercial laws, making it ideal for exporters and importers.

In the world of international trade, an Agreement for Sale of Goods (F.O.B. Basis) Format is essential for defining the responsibilities of sellers and buyers when goods are sold on a Free On Board (F.O.B.) basis. Under this Incoterm, the seller's obligation ends once the goods are loaded onto the vessel at the port of shipment. This format is governed primarily by the Indian Sale of Goods Act, 1930, and aligns with international standards like those from the International Chamber of Commerce (ICC). It protects both parties by specifying delivery terms, payment methods, and risk transfer points, preventing costly misunderstandings in cross-border transactions.

Why is Agreement for Sale of Goods (F.O.B. Basis) Format Important?

This document is crucial for exporters in India dealing with overseas buyers, as it clearly outlines the F.O.B. point—typically the named port—where title and risk pass to the buyer. It safeguards against issues like shipping delays, quality disputes, or non-payment. Legally, it fulfills court and company requirements under the Sale of Goods Act, ensuring enforceability in Indian courts. Using a standardized Agreement for Sale of Goods (F.O.B. Basis) Format reduces negotiation time, builds trust, and supports smooth customs clearance and insurance claims.

Key Elements of Agreement for Sale of Goods (F.O.B. Basis) Format

A comprehensive Agreement for Sale of Goods (F.O.B. Basis) Format includes:

Parties Involved: Details of seller (exporter) and buyer (importer), including addresses and contact information.
Description of Goods: Quantity, quality specifications, packaging, and markings.
F.O.B. Terms: Exact port of shipment, delivery date, and loading responsibilities.
Price and Payment: Total price, currency (e.g., USD or INR), payment terms like Letter of Credit (LC), and invoice details.
Inspection and Quality Control: Provisions for third-party inspection before loading.
Shipping and Insurance: Seller arranges transport to F.O.B. point; buyer handles marine insurance.
Force Majeure and Dispute Resolution: Clauses for unforeseen events and arbitration under Indian or international laws.
Signatures and Witnesses: For legal validity.

These elements make the template customizable and ready to use in PDF or Word format.

Who Should Use Agreement for Sale of Goods (F.O.B. Basis) Format?

This format is perfect for:

Indian manufacturers and exporters shipping goods like textiles, spices, machinery, or electronics.
Importers verifying supplier commitments in business-to-business (B2B) deals.
Traders in civil and commercial sectors handling bulk shipments via sea freight.
SMEs expanding globally, needing affordable legal templates.

Common use cases include export contracts from ports like Mumbai, Chennai, or Kandla, ensuring compliance with DGFT and customs regulations.

Download Your Customizable Agreement for Sale of Goods (F.O.B. Basis) Format Today!

Get instant access to our free download Agreement for Sale of Goods (F.O.B. Basis) Format in PDF/Word. Customize it with AI assistance or professional legal help for your specific needs. Paid options offer premium templates with advanced clauses for added protection.

Important Note While this Agreement for Sale of Goods (F.O.B. Basis) Format is designed as a legal template for India, it's recommended to consult a lawyer for personalization. Explore related documents like Bill of Lading, Commercial Invoice, or International Sales Contract Format for complete trade documentation. Keywords: F.O.B. agreement sample, sale of goods template India, export contract PDF, customizable trade agreement.

AGREEMENT FOR SALE OF GOODS (F.O.B. BASIS)

Non-Judicial

AGREEMENT FOR SALE OF GOODS (F.O.B. BASIS)

THIS AGREEMENT is made at ... this ... day of... between A B & Co. Ltd., a company registered under the (Indian) Companies Act, 1956 and having its registered office at ... hereinafter referred to as 'the Seller' of the One Part and M/s ... a foreign company registered under the ... Companies Act and having Its registered office at ... and its local agents' office at ... in India, hereinafter referred to as 'the Buyer' of the Other Part.

The Seller agrees to sell and the Buyer agrees to buy... bales of Indian Cotton (... variety) at the price of ... dollars per ton. The price will be on F.O.B. basis - June-July shipment.
The Buyer will nominate a ship within four weeks from the date hereof and shall give intimation of the expected date of her arrival at the port of dispatch and the Seller will ship the said goods in the nominated ship when she arrives at the port of ...
The goods will be transported by the Seller upto the wharf where the ship will be anchored, at its own costs.
When the goods are delivered to the master of the ship against the mate's receipt and the Bill of Lading is issued by the master, or owner of the ship, the delivery by the Seller to the Buyer will be complete and thereafter the goods will be the risk of the Buyer.
It will be the responsibility of the Buyer to pay the freight charges thereon, marine insurance charges and other charges for transporting the goods from the port of shipment to the port of destination and thereafter until the goods come into the actual possession of the Buyer.
On the loading of the goods in the ship, the Seller shall hand over to its banker the necessary documents of title to the goods and which will be sent by Its Bankers to their branch or nominated bank at the port of destination.
The Buyer shall open a letter of credit with its Banker in favour of the Sellers Bankers and on receipt of the documents of title by the Seller's foreign Bankers, the Buyer's Bankers will credit the amount of the price in the Sellers' name with the Seller's Bankers.
If any Import licence is required to be obtained by the Buyer at the place of destination the same will be obtained by the Buyer and the Buyer will be liable to pay all custom duty, import duty and other charges for clearance of the goods.
If any export licence Is required to be obtained for exporting the goods from India under the Indian Law, the same will be obtained by the Seller and all export duties will also be paid by the Seller'
The Buyer will be entitled to examine the goods by sample or otherwise at the port of loading and if the goods are not of the agreed quality or quantity the Buyer will have the option to reject the goods at the risk and costs of the Seller.
The seller shall carryout all customs formalities necessary for the exportation of the goods.
The seller shall bear all risk of laws of damage to the goods until such time as they have passed the ships rail at name port of shipment and thereafter all the risk of loss of or damage to the goods that is from the time they have passed the ships rail will be of the buyer.
The seller shall give to the buyer sufficient notice that the goods have been delivered on the board of the ship.
The seller shall pay the costs of checking quality measuring, weighing, counting and operations necessary for the purposes of placing the goods at the disposal of the buyer. The seller shall pack the goods properly and marked them appropriately.
The seller shall render to the buyer at the latter?s request risk and expenses and every assistance in obtaining documents or equivalent cleeironic massage issued or transmitted the country of ship man and/or of obligations which the buyer may request for the exportation of the goods.
The buyer shall pay all the costs relating to the goods from the time they have passed ships rail at the port of shipment as will as all costs incurred because of the ship named having failed to arrived in time or unable to take goods or closes for cargo earlier then the stipulated time or if the buyer fails to give sufficient notice to the seller of the ship, her arrival and loading place.
The buyer shall take delivery of the goods when they are brought on board the ship by the seller.
In case the ship nominated by the Buyer fails to arrive at the port of despatch within a reasonable time from the expected date of arrival or at all, the Buyer shall nominate another ship and intimate the date of arrival of that ship to the Seller. In such a case all the godown charges incurred by the Seller for storing the goods either with a clearing agent or with the port authorities from the date of arrival of the goods at the port till the date of putting the goods on board. the ship will be payable by the Buyer. If the nominated vessel does not land at the port of despatch but arrives at some other port in India the Seller will if so required by the Buyer transport the goods to the other port for shipment but in such a case the transport charges will be payable by the Buyer.
If any dispute arises under this contract, between the parties, of whatsoever nature, including any claim for damages the same will be referred to arbitration under the Byelaws of the ... Cotton Association.

Sd/- Seller. Sd/- Buyer.

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Important Guidelines

Guidelines for Drafting an Agreement for Sale of Goods (F.O.B. Basis)

Usage: An Agreement for Sale of Goods on a "F.O.B. (Free On Board) Basis" is commonly used in international trade. It specifies the responsibilities and obligations of the buyer and seller in terms of the delivery of goods. F.O.B. terms determine when and where the risk and title to the goods transfer from the seller to the buyer. This agreement is vital for businesses engaged in importing or exporting goods by sea, air, or land.

Common Mistakes to Avoid:

Unclear F.O.B. Point: Specify the exact location where risk transfers (e.g., F.O.B. Origin or F.O.B. Destination). Failing to do so can lead to disputes over liability during transit.

Incomplete Goods Description: Provide a detailed description of the goods, including quantity, quality, specifications, and packaging, to avoid misunderstandings about what is being sold.

Payment Terms: Clearly outline the price, currency, payment method, and any applicable Incoterms (International Commercial Terms) to prevent payment disputes.

Delivery Obligations: Define each party's responsibilities for transportation, insurance, and import/export compliance, as well as any necessary documentation like bills of lading or customs forms.

Force Majeure Clause: Include a provision for unforeseen events like natural disasters or political instability, specifying how delays or cancellations will be handled.

Dispute Resolution: Specify how disputes will be resolved, such as through arbitration or mediation, to avoid costly legal battles in different jurisdictions.

Applicable Law: Clarify the governing law and jurisdiction to determine which country's laws will apply in case of disputes.

Insurance: Determine which party is responsible for insuring the goods during transit, and specify the coverage amount and terms.

By adhering to these guidelines and avoiding common mistakes, you can draft a comprehensive Agreement for Sale of Goods (F.O.B. Basis) that ensures clarity and minimizes the risk of disputes in international trade transactions.

Frequently asked questions

What is an Agreement for Sale of Goods (F.O.B. Basis)?→

This is a legal agreement in India outlining the terms for selling goods on Free On Board (F.O.B.) basis, where the seller bears costs and risks until goods are loaded on the ship at the port of shipment.

Is this Agreement for Sale of Goods valid in India?→

Yes, it is legally enforceable under the Indian Contract Act, 1872, and Sale of Goods Act, 1930, provided it meets essential contract elements like offer, acceptance, and consideration.

Do I need to pay stamp duty on this F.O.B. sale agreement in India?→

Yes, stamp duty is applicable as per the Indian Stamp Act, 1899, and varies by state; execute on stamp paper of appropriate value and consult local laws for exact rates.

In what format can I download this Agreement for Sale of Goods?→

Download it in editable Microsoft Word (.docx) or non-editable PDF format, suitable for immediate use or customization.

Can I edit or customize this F.O.B. Basis Sale Agreement?→

Yes, the Word version is fully customizable; modify clauses for parties, goods description, price, delivery terms, and other specifics as per your needs in India.

Who should use this Agreement for Sale of Goods (F.O.B. Basis) in India?→

Ideal for Indian exporters selling goods internationally on F.O.B. terms, ensuring clear risk transfer at the port and compliance with INCOTERMS.