GENERAL TERMS AND CONDITIONS GOVERNING SALE AND DELIVER
OF BULK MARINE OIL BUNKER SUPPLY
Unless the context otherwise demands:
A.1 "Seller" means Coral for Bunkering & Services Head Office Port Sudan.
A.2 "Buyer" means the party requesting the Seller either to sell and deliver to
it, or to arrange for the delivery to it, of Marine Fuels.
A.3 "Supplier" means the party having Marine Fuels available at a port and
requested by the Seller to deliver to the Buyer.
A.4 "Delivery Port" means the port at which the Supplier delivers Marine Fuels
against a nomination.
A.5 "Marine Fuels" means marine fuel oil, intermediate fuel oil, marine diesel
oil, light marine diesel oil and gas oil.
A.6 "Fuels Prices" means those prices quoted by the Seller against the Buyer’s
A.7 "Owner" means the registered Owner or Bareboat Charterer of the vessel; and
A.8 "Vessel" means the Vessel, Ship, Barge or Off-Shore Unit that receives the
supply/Marine Fuels; either as end-user or as transfer unit to a third party.
B.1 This is a statement of the terms and conditions according to which Coral
Bunkering & Services Co. LTD., (hereinafter called “ Coral ") will sell Marine
Fuels and Lubricants.
B.2 These conditions apply to all offers, quotations, orders, agreements,
services and all subsequent contracts of whatever nature, except where otherwise
is expressly agreed in writing by Coral.
B.3 General trading conditions of another party will not apply, unless expressly
accepted in writing by Coral.
B.4 In the case that, for whatever reason, one or more of the (sub)clauses of
these general conditions are invalid, the other (sub)clauses hereof shall remain
valid and be binding upon the parties.
Specification (QUALITY - QUANTITY)
C.1 The Buyer shall have the sole responsibility for the nomination of the
quality and the quantity of the Marine Fuels/Lubricants, which shall correspond
to the written confirmation from the Seller.
C.2 The quality and quantity shall be as agreed between the Seller and the Buyer
and correspond to the Seller's written confirmation.
C.3 In respect of the quantity agreed upon the Seller shall be at liberty to
provide, and the Buyer shall accept a variation of 5% from the agreed quantity,
with no other consequence than a similar variation to the corresponding invoice
from the Seller.
Nomination and final notice of requirement
D.1 Buyer shall give Seller or Supplier directly or through Buyer’s agents at
least 72 hours written notice. (Fridays and holidays excluded) of vessel’s
readiness to receive delivery. Buyer shall specify the name of the vessel, the
vessel’s agent, the loading port, the estimated arrival date and the exact
required quantity and quality of Marine Fuels required so as to enable Seller or
Supplier to make any necessary arrangements for the delivery. By making such
nomination the Buyer shall be deemed to have accepted and agreed to the terms
and conditions herein contained.
D.2 Buyer shall give Seller or Supplier final notice of requirement directly or
through Buyer’s agent at least 48 hours (Friday and holidays excluded) before
loading Marine Fuel into barge.
D.3 Seller on its own behalf may decline a nomination by notice given to the
Buyer at least 48 hours before loading Marine Fuels into barge.
D.4 If the vessel shall not have arrived at the Delivery Port within ten (10)
calendar days after the expected date of arrival as notified in C. above the
nomination shall be deemed to have been cancelled by the Buyer.
D.5 Notwithstanding the nomination to the Buyer of a Supplier hereunder the
Seller shall be and remain responsible as principal for the performance of the
contract subject always to the terms and conditions herein contained. It is
specifically and accepted by the Buyer that upon receiving notification from the
Seller of the Supplier that nomination shall be accepted by the Buyer and that
Supplier so nominated is for the purposes of this contract referred to as
E.1 The time of delivery, as given by the Seller, has been given as an
approximate time, unless it has been otherwise specifically agreed in writing
between the parties.
E.2 The time of delivery will only be binding upon the Seller when all
information necessary for the Seller to comply with its obligations hereunder,
have been properly delivered to the Seller in reasonable time before the
E.3 Seller’s obligation to make any delivery hereunder is subject to the
availability to Seller at the Delivery Port of the particular grades of Marine
Fuels desired by Buyer.
E.4 If Seller or Supplier at any time for any reason believes that there may be
such a shortage of supply at any port that it may be unable to meet the demands
of all its customers. Seller or Supplier may allocate its available and
anticipated supply among its customers in such a manner as it may in its sole
E.5 Deliveries shall be made during normal working hours at the port in question
unless required at other times and permitted by port regulations in which event
the Buyer shall pay all overtime and extra expenses incurred.
E.6 Seller shall not be required to deliver Marine Fuels into any of the
vessel’s tanks which are not regularly used for bunkers, and shall not be
required to deliver any fuel for the export of which a Government permit is
required and has not been obtained by the Buyer or its accredited
E.7 Delivery shall be made at wharf or at shore terminals of Seller or Supplier
or by barge where barging facilities are available in Seller’s option: or a
combination of the mentioned supply methods.
E.8 Vessel shall be bunkered as promptly as circumstances permit. Seller or
Supplier shall not be liable to Buyer for any loss or demurrage due directly or
indirectly to weather, congestion of the port, prior commitment of available
barges or any other contingency.
E.9 In the event of delivery by barges(s). Buyer shall provide free of expense a
clear and safe berth for the barge(s) alongside the vessel’s receiving lines.
Buyer shall pay Seller the amount due to Seller or Supplier according to it’s
current barging rates at the port concerned. Other charges, such as for mooring
and unmooring, to be for Buyer’s account.
E.10 Seller, Supplier, or the barging equipment are in no case whatsoever
responsible to any damage, loss or delay to the receiving vessel. Furthermore
Buyer agrees to pay and indemnify against all claims and expenses for any loss,
caused by receiving vessel to barging equipment.
E.11 Terminal or barge deliveries need not be made where in Seller’s or
Supplier’s opinion clear and safe berth is not available.
E.12 Receiving vessel to moor, unmoor, hoist bunkering hose(s) from the barges(s),
respectively lower hose(s) day/night, Fridays and holidays included, whenever
required by Seller or Supplier; free of expenses, and in any way assist barge
equipment to a smooth supply. Buyer shall make the connection between the
pipeline(s)/delivery hose(s) and vessel’s lines, and shall provide sufficient
tankage and equipment to receive promptly, day/night, Fridays and holidays
included, all deliveries hereunder. In case Buyers vessel is not able to receive
promptly and smoothly Buyer is to be responsible for and to pay reasonable
demurrage claims to the barging facilities.
F.1 The quantity of the fuel oils delivered hereunder shall be determined from
gauge of Seller’s or Supplier’s shore tanks or barge effecting delivery or
Seller’s or Supplier’s oil meter, at Seller’s or Supplier’s option.
F.2 There would be an option to survey the Seller's or Supplier's oil meter by a
third party inspector. The cost of such inspection shall be compensated solely
by the Buyer.
F.3 In gauging shore tanks or barge, the chief engineer of Buyer’s vessel or his
representative, shall jointly with the Seller or Supplier, measure and verify
quantities of the Marine Fuels sold and delivered hereunder in tanks or barges
from which delivery is made. Should chief engineer or his representative fail or
decline to so verify quantities, measurement of quantity made by Supplier as
afore said shall be final and conclusive as to quantities sold and delivered
hereunder, and no claims for variance shall be allowed subsequent to delivery.
In the measurement of the fuel oils, Seller shall make, or cause to be made,
allowance for all water and/or non-petroleum sediment in excess of one (1)
F.4 The Chief Engineer or his representative shall together with the Seller's
representative measure and verify the quantities of Marine Fuels delivered from
the tank(s) from which the delivery is made.
F.5 Should the Chief Engineer or his representative fail or decline to verify
the quantities, the measurements of quantities made by the Seller shall be
final, conclusive and binding and the Buyer shall be deemed to have waived any
and all claims in regard to the variance.
G.1 Complaint as to quality must be based on tests made as soon as possible by
an independent laboratory of samples taken at time of delivery from shore tank
or barge from which delivery is made.
H.1 The Seller shall arrange for four (4) identical representative samples of
each grade of Marine Fuels to be drawn throughout the entire bunkering
operation. If practically possible such samples shall be drawn in the presence
of both the Sellers and the Buyers or their respective representatives.
H.2 In case that drip sampling is not available onboard barge, tank truck or
shore tank, samples shall be taken as a composite of each tank divided with 1/3
from each the top/mid/bottom of the tanks.
H.3 The samples shall be securely sealed and provided with labels showing the
Vessel's name, identity of delivery facility, product name, delivery date and
place and seal number, authenticated with the Vessel's stamp and signed by the
Seller's representative and the Master of the Vessel or his representative. The
seal numbers shall be inserted into the BDR/Bunker Delivery Receipts, and by
signing the BDR both parties agrees to the fact that the samples referred to
therein are deemed valid and taken in accordance with the requirements as
specified in this clause.
H.4 Two (2) samples shall be retained by the Seller for ninety (90) days after
delivery of the Marine Fuels, or if requested by the Buyer in writing, for as
long as the Buyer reasonably required. The other two (2) samples shall be
retained by the receiving Vessel.
H.5 In the event of a dispute in regard to the quality of the Marine Fuels
delivered, the samples drawn pursuant to clause H.4 shall be deemed to be
conclusive and final evidence for the quality of the product delivered. In case
of disputes one of the samples retained by Sellers shall be forwarded to a by
both Sellers and Buyers agreed independent laboratory for final and binding
analyses. The seal must be breached only in presence of both parties unless
one/both in writing have declared that they will not be present; and both
parties shall have the right to appoint independent person(s) or institute(s) to
witness seal breaking. No samples subsequently taken shall be allowed as
(additional) evidence. If any of the seals have been removed or tampered with by
an unauthorized person, such sample(s) shall be deemed to have no value as
I.1 Payment shall be made by the Buyer as directed by the Seller within the
period agreed in writing.
I.2 Payment shall be made in full, without set-off, counterclaim, deduction
and/or discount free of bank charges to the bank account indicated by the Seller
on the respective invoice(s).
I.3 Notwithstanding any agreement to the contrary, payment will be due
immediately in case of bankruptcy, liquidation or suspension of payment or
comparable situation of the Buyer, or arrest or assets and/or claims of the
Buyer, or in case of any other situation, which in the sole discretion of the
Seller, is deemed to adversely affect the financial position of the Buyer.
I.4 Payment shall be deemed to have been made on the date of which the Seller
has received the full payment and such is available to the Seller. If payment
falls due on a non-business day, the payment shall be made on or before the
business day nearest to the due date. If the preceding and the succeeding
business days are equally near to the due date, then payment shall be made on or
before the preceding business day.
I.5 Any delay in payment shall entitle the Seller to interest at, presently, the
rate of 2 (two) per cent per month or any part thereof without prejudice to any
rights or remedies available to the Seller, and furthermore the Seller is
entitled to charging administrational penalty fee of USD 1.00 per mton supplied,
or the equality thereof in local currency, thus minimum penalty fee of USD
I.6 Payments made by the Buyer shall at all times be credited in the following
order: (1) costs, (2) interest and administrational fee, and (3) invoices in
their order of age, also if not yet due.
I.7 All costs borne by the Seller in connection with the collection of overdue
payments, whether made in or out of court and in general all costs in connection
with breach of this agreement by the Buyer, shall be for the sole account of the
I.8 The Seller shall at all times be entitled to require the Buyer to grant the
Seller what the 5 Seller deems to be proper security for the performance of all
its obligations under the agreement. Failing immediate to provide such security
upon request, the Seller shall be entitled to stop any further execution of any
agreement(s) between the parties until such time as the Buyer has provided the
J.1 The Seller may at any time demand that payment be made before the date due
for payment whether before or after delivery of the Marine Fuels or may demand
the giving of such security as it may specify.
J.2 If at any time the Buyer has failed to make any payment or give any security
required (whether in terms of this clause or not), the Seller shall, in addition
to any other remedy, be entitled to suspend or terminate deliveries (insofar as
they have not already taken place) and to assert all their rights against the
vessel. The Seller may also procure that any other deliveries be suspended or
terminated. In the event of such suspension or termination the Buyer shall have
no recourse against the Seller.
K.1 On completion of the delivery of Marine Fuel to a vessel, the Master of the
vessel or the Buyer’s accredited representative shall give the Supplier a signed
receipt therefore in a form required by the Supplier.
L.1 Any claim by Buyer of any nature arising under these terms shall be notified
to Seller in written form within eight days after delivery and no such claim
shall be made or allowed after eight days from delivery.
M.1 Neither the Seller nor the Supplier, shall be responsible for any failure to
fulfil their obligations (other than the payment of money) hereunder if
fulfillment has been delayed, hindered, interfered with, curtailed or prevented
(a) any circumstances whatsoever whether or not foreseen which are not within
the immediate control of the Seller or the Supplier or,
(b) any curtailment, failure or cessation of supplies of Marine Fuels or the
petroleum from which such Marine Fuels are derived or of any of the Seller’s or
the Supplier’s sources of supply, (whether in fact sources of supply for the
Marine Fuels to be delivered against a nomination or not) or,
(c) compliance with any order, demand or request of any international, national,
port, transportation, local, or other authority or agency or of any body or
person purporting to be or to act for such authority or agency, breakdown of or
accident to plant, machinery or facilities, or weather conditions or,
(d) any strike, lock-out or labor dispute (whether or not the Seller or the
Supplier is a party thereto or would be able to influence or procure the
settlement thereof) war, hostilities, or any local or national emergency (or the
threat or apprehension of any of the foregoing events).
M.2 Seller or Supplier shall not be required to remove any such cause set out in
M.1. above or replace any effected source of supply or facility if doing so
shall involve additional expense or a departure from Seller or Supplier’s
practices. Seller or Supplier shall not be required to make up any deliveries
omitted in accordance with this clause.
N.1 Seller may assign all or any part of its rights and obligations. Any
assignment by Buyer without Seller’s written consent shall be void.
Liability and indemnity
O.1 Buyer shall hold Seller harmless from any and all expense, claims, loss,
damage and liability arising out of :
(a) all charges for any delivery by Barge including any barging charges,
similarly charges provided for Bulk Lorry, Rail Tank Wagon and Drum deliveries,
(b) Any mooring or unmooring charges or port dues which may be incurred by the
Supplier in connection with any vessel to which Marine Fuels are delivered
P.1 If an escape, spillage or discharge of oil (hereinafter called a ‘spill’)
occurs while a delivery of Marine Fuel is being made on behalf of a the Buyer,
the Buyer will promptly take such action as is reasonably necessary to remove
the oil and mitigate the effects of such spill. However, notwithstanding the
cause of such spill the Seller or the Supplier is hereby authorised, at its
option upon notice to the Buyer, or the Buyer’s operator of, or agent for, the
receiving vessel, to take such measures, either in co-operation with the Buyer,
or exclusively as the sole party, and incur such expenses (whether by employing
its own resources or by contracting with others) as are reasonably necessary in
the judgment of the Seller or the Supplier, to remove the oil and mitigate the
effects of such spill. If the Seller has exercised its option to remove the oil
and mitigate the effects of such spill, the Buyer agrees to co-operate and
render such assistance as is required by the Seller in the course of such
action. Any expenses, damages, costs, fines and penalties arising from the
escape, spillage, etc. by its negligent act or omission. If both parties have
acted negligently, any expenses, etc. shall be divided between the parties in
accordance with their respective degrees of negligence. The burden of proof to
show the Seller’s negligence shall be on the Buyer. The Buyer also agrees to
give or cause to be given, to the Seller, all such documents, and other
information concerning any spill, or any programme for the prevention thereof,
which are requested by the Seller, or required by laws or regulations applicable
at the time and place where the Seller or the Supplier delivers Marine Fuel to
such exceptions subject always to clauses C, E.3, E.4, E.8, E.12, G, I, M. 1 and
Q.1 The Buyer will indemnify the Seller and the Supplier against any claims,
losses, costs (including costs as between Attorney or Solicitor and Client),
damages, liabilities, fines, penalties and expenses incurred or sustained
arising out of or in connection with the delivery of Marine Fuels against a
nomination except to the extent the such claims, losses, costs, damages,
liabilities and expenses arise through the negligent act or omission of the
Seller or the Supplier
R.1 Any waiver by the Seller, the Supplier or the Buyer, or any of their
respective rights hereunder or against a nomination in any particular instance
shall not prejudice their respective rights to enforce the same strictly and in
full on any subsequent occasion.
S.1 The Seller shall have the option to immediately cancel the agreement in full
or in part, or to store or produce the storage of the Marine Fuels in whole or
in part for the account and risk of the Buyer and to charge the Buyer the
expenses thereby incurred, or to hold the Buyer fully to the agreement, or take
any other measures which the Seller deems appropriate, without prejudice to its
rights of indemnification, without any liability on the side of the Seller, in
any (but not limited to) one of the following cases:
a) when the Buyer, for whatever reason, fails to accept the Marine Fuels in part
or in full at the place and time designated for delivery;
b) when the Buyer fails in part or in full to comply with its obligations to pay
any amount due to the Seller and/or provide security as set out herein;
c) when, before the date of delivery, it is appearant in the opinion of the
Seller that the financial position of the Buyer entails a risk for the Seller;
d) when, in case of force majeure, the Seller is of the opinion that the
execution of the agreement shall be cancelled.
S.2 The Seller may terminate any agreement with the Buyer in whole or in part,
in its full discretion, upon the breach of any provisions hereof by the Buyer.
T.1 If the nomination is made by an agent acting for or on behalf of the Buyer,
whether such agency is disclosed or undisclosed then such agent shall be liable,
as well as the Buyer, not only as agent but also as principal for the
performance of all the obligations of the Buyer.
U.1 Notices to be given hereunder shall be addressed to the addresses specified
from time to time by the party to whom the notice is addressed.
U.2 Where a nomination is made by any agent acting for the Buyer then notice may
be given either to the agent or to the Buyer at the option of the party giving
Arbitration and governing law
V.1 This agreement shall be governed in all matters by English Law.
V.2 Notwithstanding anything in this agreement, including, without limit,
sub-clause V.1, upon delivery of the Marine Fuels to the vessel(s), Seller shall
have a maritime lien on such vessel(s) for any amounts owed to the Seller, and
nothing herein shall affect or prejudice the right of Seller to take action
and/or commence proceedings to enforce its right of lien on such vessel(s) or to
otherwise obtain security by seizure, attachment or arrest of vessel(s) or any
other assets for any amounts owed to Seller in any jurisdiction in accordance
with local law in such jurisdiction