Contracts
The international sales of grain, animal feedingstuffs, pulses and rices are traditionally bought and sold under the terms and conditions of Gafta standard forms of contract. The chain of supply starts with the farmers whose crops of grain, feed, fats, molasses, pulses, oilseeds and rice are processed and consumed in a vast range of products. At every link of the supply-demand chain there are prospective sellers and buyers, whose interaction creates the markets for which Gafta provides the standard contract terms.
These buyers and sellers may also include specialists in malting, brewing and distilling, milling, feed and food processing who together with the exporters, importers and merchants are the international traders of the vast bulk commodity crops transported around the globe.
Every issue you need for trading
Contract negotiations are direct between prospective buyers and sellers, or through the intermediary of a broker. Many of these international forward, physical, contracts are often entered into 6-9-12 months ahead of harvest, shipment, or delivery. In support of these transactions Gafta has available standard trading terms set out in a range of 80 standard forms of contracts with clauses for:
- Quality, condition, warranties and guarantees
- Shipping documents and appropriations
- Payment terms
- Problems and exceptional circumstances
- Insurance
- Default and damages
- Supporting rules for: weighing, sampling, analysis methods and insurance
Gafta Arbitration
>All contracts incorporate provision for arbitration as per Gafta Arbitration Rules No. 125
>Click here for more information about Gafta Arbitration
The International Contracts Policy Committee (ICPC)
All the contracts and rules are kept up to date by an international committee, the ICPC, to ensure that they reflect current trade practices for CIF, FOB and delivered/collected transactions.
