Contract No. 39 of GAFTA is a FOB contract used in the general and bulk sale of oilseeds. In this contract, the seller is responsible for delivering the goods on board a ship at the named port of origin. The fulfillment of the contractual obligations begins with the actions of the buyer. If the buyer fails to fulfill his obligations on time, the seller may refuse to load the goods, terminate the contract and claim damages.
The buyer must designate the vessel so that it can receive the oilseeds cargo at the time and place specified in the contract. The buyer is also obliged to make the vessel available for loading. The buyer is responsible for the timely arrival of the vessel at the port of origin and its readiness for loading. The buyer is obliged to pay the price of the goods and receive documents. The buyer must pay the price of the goods and receive documents that comply with the terms of the contract.
The unit price is determined as the basis for calculating the price of the goods subject to delivery for buyers who deal in bulk and general. According to Article 8 of the GAFTA Contract No. 39, there are additional costs for loading non-automatic bulk carriers and general cargo ships between decks. Therefore, exporters must specify the type of ship for loading at the time of quotation and subsequently in the sales contract to avoid incurring additional costs due to loading with an unsuitable ship.
