Offtake Agreement
This Offtake Agreement (“Agreement”) is entered into as of this [Date] by and between [Your Name], hereinafter referred to as "Supplier", having its principal place of business at [Your Company Address], and [Buyer's Name], hereinafter referred to as "Buyer", having its principal place of business at [Buyer's Address] Collectively referred to as the "Parties".
I. PURPOSE AND SCOPE
The purpose of this Agreement is to establish the terms and conditions upon which Supplier agrees to sell and deliver, and Buyer agrees to buy and receive certain commodities subject to the terms and conditions contained herein. The Agreement strives to ensure market stability, reduce risk, secure financing, achieve efficient supply chain planning, foster long-term relationships, and specifically outlines the terms of the Offtake Arrangement between the Parties.
II. LOCATION AND DELIVERY
The Parties agree that the location for delivery shall be determined by the Buyer. The Supplier will use all reasonable efforts to meet the Buyer's delivery requirements and outlined schedules, conforming to the agreed-upon quality standards. Any changes to the delivery location or schedule shall be mutually agreed upon in writing by both Parties.
III. PRICE AND PAYMENT
The Buyer agrees to pay the Supplier a pre-determined price for the goods as specified in the Offtake Agreement Schedule attached hereto as Appendix A. Payment terms shall be agreed upon by the Parties in writing before the effective date of this Agreement. The Supplier shall issue adequate documentation, including but not limited to invoices, delivery receipts, and quality certificates, to authenticate the volume and quality of goods delivered.
IV. RISK MANAGEMENT
This Agreement intends to manage the risks for both Parties. The Supplier is ensured of a market for their goods, reducing their production risk. The Buyer, on the other hand, secures a stable supply, reducing their risk of supply shortages or price alterations. Both Parties shall cooperate to identify and mitigate any risks associated with the supply and delivery of the commodities.
V. DURATION AND TERMINATION
This Agreement shall come into effect on the date first above written and shall continue in force for a period of [insert duration] unless terminated earlier as provided herein. Either Party may terminate this Agreement by giving days' written notice to the other Party. Upon termination, all duties, responsibilities, and liabilities of the Parties shall cease, except for payments due for prior deliveries.
VI. GOVERNING LAW
This Agreement shall be governed by and construed by the laws of the territory or region it is executed. Any disputes arising out of or in connection with this Agreement shall be finally settled under the Rules of Arbitration of the [Arbitration Institution], by [number] arbitrators appointed by said Rules.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.
SUPPLIER:
[Your Name]
[Your Company Name
[Date Signed]
BUYER:
[Buyer's Name]
[Buyer's Company Name] (if applicable)]
[Date Signed]
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