In the case of a sole Broker; when a contract confirmation is drafted by him it should be sent by him to both Principals for signature.
In the case of two Brokers; it is the duty of the Sellers' Broker to raise the contract confirmation and to send it to the other Broker. The Brokers should exchange the terms between them, and drafts should continue to be exchanged between them, until such time as they are identical and agreed, before they are sent to their Principals for signature. Both Brokers should be named on the Contract.
Failure of a party to sign a contract confirmation does not necessarily invalidate it but their signatures provide certainty, particularly at a later stage if there is a dispute.

Notices
All notices required to be served on the contracting parties should be communicated rapidly in legible form. Methods of rapid communication are defined as either telex, or letter if delivered by hand on the date of writing, or telefax, or E-mail or other electronic means, always subject to the proviso that if receipt of any notice is contested by the addressee the burden of proof of transmission shall be on the sender.
A notice to a broker or agent under the parties' contracts terms is deemed to be a 'Notice' under the contract.
When a notice is received by a Broker he has a duty to pass it on in accordance with the contract terms. Failure to do so could result in a breach of contract by one of the Principals.

Commission
Rates of commission are negotiated between Brokers and their Principals direct, and are not subject to a scale or agreement by any organization or association.
The Brokerage Contracts is the agreement between the Principals with regard to the payment by them of the brokerage agreed. A Broker is not a party to that agreement.
A Broker is not a party to his Principals' contract and does not fall under any of their terms with particular regard but not limited to, the fulfillment or default of a contract, nor its domicile or jurisdiction clause.
In the event of a dispute on commission between a Broker and his Principal, the use of the agreement will provide for settlement by arbitration in accordance with Arbitration Rules in force at the date of the agreement.

PROCEDURE #1
1 Buyer issues LOI with BCL or RWA and NCNDA
2 Seller or is Representative send FCO
3 Buyer approve FCO
4 Seller prepare sale and purchase draft contract.
5 Buyer returns the Sales and Purchase Agreement duly signed and sealed to Seller within 5 (Five) Banking days per Fax and E-mail.
6 Within 5 (Five) Banking days after executing and signing of the Sales and Purchase Contract, Buyers Bank states their readiness to issue their irrevocable, and for the Seller Transferable and non operative DLC , as per contract agreed to Seller’s nominated Bank.
7 Within 10 (ten) International Banking days of the receipt of Buyers Irrevocable , Transferable and Assignable DLC payment, the Seller will post the full Proof of Product which will activate the DLC.
8 Shipment commence, as per Delivery Schedule mutually agreed.

PROCEDURE #2
1 Buyer submits LOI & BCL not older than 5 banking days and NCNDA
2 Seller or Seller Mandate Issues FCO.
3 Buyer sends signs FCO with all information completed.
4 Seller issues Contract for Buyer's signature and Buyer returns signed Contract to Seller by Facsimile.
5 Buyer Bank Issues Non-Operative Letter of Credit to the Seller in 5 Working Days After Signing the Contract.
6 Sellers Bank confirms POP and 2% PB and Activate the Letter of Credit.
7 Shipment commences as per contract.
{jcomments on}