Commodity Contract Clause Library
A searchable library of standard bulk commodity contract clauses | quality determination, price adjustment, payment, delivery, shipping and compliance | each with a drafting note on what to watch out for.
Quality and weight as determined by an independent internationally recognised inspection company mutually agreed between the parties at the load port at the time of loading shall be final and binding on both parties for invoicing and settlement purposes, save in the case of fraud or manifest error. The cost of such inspection shall be shared equally between Seller and Buyer. Buyer shall be entitled to appoint its own surveyor at its own cost to attend loading and to witness sampling and analysis.
Overview & methodology
Numerical Example: Quality Adjustment Clause
Example for an Iron Ore shipment where the price is adjusted downwards due to a 0.5% shortfall in iron content compared to the basis grade.
Drafting Bulk Commodity Contracts
Most bulk commodity disputes trace back to a handful of recurring clauses | where quality is determined, how price adjusts for quality variance, how payment is secured, and who bears risk at each stage of the voyage. This library collects standard drafting for each of those points, with the practical trade-offs behind the wording. Use it as a starting point for negotiation, not as a substitute for legal review.
Frequently asked questions
Which clauses matter most in a bulk commodity contract?
Quality and rejection, weight and quantity determination, title and risk transfer, payment and security, laytime and demurrage, force majeure, sanctions and compliance, and dispute resolution. Ambiguity in quality determination and in the passing of title causes most commodity arbitrations.