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Form #725Sale of Lumber Agreement
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Agreement for Sale of Lumber - free to use
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Sale of lumber.
This agreement is made between _________, of _________,
referred to as manufacturer, and _________, of _________, referred to as agent.
Manufacturer appoints agent as exclusive selling agent
for the entire output of the lumber from sawmill located at _________, under
the following terms and conditions:
1. This contract is to exist for a period of _________
months from _________, _________[date], provided that manufacturer shall
fill, under the terms and conditions of this contract, all orders, taken during
the term by agent under this contract, which remain unfilled on _________, _________[date].
2. Agent agrees to advance money to manufacturer only
as specified here: _________ dollars per thousand board feet on all tupelo gum
or cypress lumber; _________ dollars per thousand board feet on sap and red gum
lumber and _________ dollars per thousand board feet on oak or ash lumber;
measurements less than _________ inch in thickness in proportion to the
above-stated amounts. All of said lumber to run No. _________ common and
better, and not to exceed _________ percent of it is to be No. _________
common. All lumber to be uniformly manufactured full thickness when dry, edged,
and end trimmed, and to be manufactured from first-class, fresh-cut, live,
merchantable timber, and to be free from punky, doty, brashy, or lightweight
lumber, or lumber damaged by overflow or high water; lumber to be piled on
yards of manufacturer at _________, on the _________ railroad.
3. Manufacturer agrees to place the lumber on
foundations sufficiently high to permit a good air space, or end racked so as
to permit a good air space; all lumber stacked on foundations shall have not
less than _________ cross-sticks on _________ foot piles, _________
cross-sticks on _________ foot piles and _________ cross-sticks on _________
foot piles; _________ percent or more of said lumber shall run _________ and
_________ feet long.
4. Manufacturer agrees to allow the lumber to remain
in a pile until dry and to load and ship only in accordance with instructions
of agent, guaranteeing the grades and measurements according to the _________
lumber association rules.
5. Agent agrees to advance to manufacturer every
_________ weeks, the sums set forth in paragraph _________ of this contract,
upon manufacturer furnishing to agent a daily report of all lumber cut and
placed on sticks. Agent agrees to honor the draft of manufacturer every
_________ weeks, to which draft shall be attached a biweekly report of all
lumber cut and stacked, which biweekly report shall conform in all respects to
the aggregate of the daily reports for that period.
6. Manufacturer agrees to lease, by a written lease in
proper form with usual covenants and duly executed, to agent, for the period of
this contract, the land upon which the lumber is to be stacked.
7. Manufacturer is to execute to and in favor of agent
a good and solvent bond with surety by a company or companies, or any other
security acceptable to agent and in an acceptable amount, guaranteeing to agent
that the lumber at time draft is made for it is free from all liens and claims
of every description, including taxes and labor; that the daily and biweekly
reports of lumber cut and placed for which drafts are drawn, are true and
correct; and that manufacturer will ship or dispose of the lumber only in
accordance with the terms of this contract.
8. Manufacturer agrees to insure all lumber
manufactured by it under this contract, with some company or companies and for
an amount acceptable to agent, with a clause or indorsement on the policy or
policies of said insurance, making any loss payable to agent as its interest
may appear. The policy or policies shall be delivered to agent immediately upon
their issuance and in event of loss by fire, agent shall receive its cash
advances on the lumber, if any, together with its commission on all lumber on
which cash advances have been made.
9. In consideration of its appointment as exclusive
selling agent of manufacturer, agent agrees to pay manufacturer the highest
market price which agent can secure, at the time of sale, from the sale of lumber,
less _________ percent commission on the net selling price, after deducting
from the invoice the tariff rate of freight at time of shipment. Agent will
guarantee all credits which it may extend to its customers and manufacturer
agrees to relieve agent from all liability on account of cancellation of orders
made by customers of agent.
10. Agent agrees to submit to manufacturer for its
approval the price to be received on each order to be delivered from lumber
manufactured under this contract, where the price is below the market price
prevailing at the time of the order.
11. Agent shall have the privilege at any time of
rechecking the lumber on the yard and/or of inspecting the yard inventory and
shipping books of manufacturer.
12. Agent agrees to make the advances referred to in
paragraph _________ of this contract at the rate of _________ percent per
annum.
13. All "kicks" or "complaints" on
account of grade or shortage in measurement that aggregate not to exceed
_________ dollars per car are to be absorbed by agent. Where a complaint on
account of grade or measurement exceeds _________ dollars per car, agent shall
refer the complaint to manufacturer for adjustment, and manufacturer shall pay
all claims over _________ dollars per car, whether settled by agreement or
according to the rules of the _________ lumber association.
14. The adjustment of all freight charges shall be
finally made upon certified railroad weights, the certified railroad weight
sheets or expense bills to be delivered to manufacturer for its inspection and
approval.
15. Up to the time the total amount of advances made
to it has been repaid, manufacturer agrees that agent may credit its advance
account with the face of the invoices less freight and commission. After the
advance account has been fully repaid, agent agrees to pay to manufacturer
within _________ days after receipt of each invoice, _________ percent of the
full face value of the invoice, less freight charges and _________ percent
commission, balance to be paid immediately upon receipt and acceptance of
shipment by customer.
16. Agent agrees that it will use its best efforts at
all times to furnish to manufacturer orders and shipping instructions to cover
all lumber on hand that is ready for shipment and shipping dry.
17. If there is a slump in the lumber market and sales
prices of lumber depreciate to a point where there is not _________ percent
margin between mill sale price and amount of advance, the parties will agree on
a new scale of advances, so that the margin will equal at least _________
percent and if, under the new scale of advances, there is an excess in the
amount then advanced over the amount that will be required by the new scale,
then manufacturer will place sufficient lumber on the yard to absorb the
excess.
18. Any breach or violation of any of the articles of
this agreement by either of the parties will have the effect of terminating
this contract at the option of the aggrieved party, provided the aggrieved
party shall give the other party _________ days' notice in writing of its
intention to terminate this contract and provided further that manufacturer
shall fill, under the terms of and conditions of this contract, all orders
taken under this contract up to the date of its termination by agent and which
remain unfilled at the date of termination.
19. Agent shall at all times have a lien on the lumber
on yard of manufacturer for any and all advances made by agent to manufacturer
and which remain unpaid.
20. For and in consideration of the benefits to accrue
to it by virtue of this contract, agent accepts the above recited appointment
as exclusive selling agent for manufacturer under all the terms and conditions
and subject to all the obligations of this contract.
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Your use of this site constitutes your acceptance of our terms of use and your agreement
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These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com
is not engaged in recommending or referring members on the site or making claims
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