Forward Agreement for buying precious metals

TEJAL PANCHAMIA (Querist) 13 May 2011 This query is : Resolved
Can any one share with me the sample agreement for "Forward contract for precious metals"?

We want to enter contract wherein we are going to purchase precious metals to be used for manufacturing a product for a buyer.

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M V Gupta (Expert) 15 May 2011
This is tailer made doccument. Pl conatact ur Advocate.

Guest (Expert) 16 May 2011
The format of such type of agreement can also be available with any of the member dealer of Metal Exchange or Commodity Exchange.

TEJAL PANCHAMIA (Querist) 17 May 2011
pls correct me if my understandig on Forward agreements is wrong:- one party buys the precious metal for the other party and the price and the delivery date are fixed. It is different from the future contracts as thsoe are standard contract and the commodities for the same are traded on stock exchange.

Now can we incorporate penalty /bank gaurnatee clause in the agreement to safe guard our interest to ensure that the other party lifts the material on the date of delivery .

Also what other precautions needs to be incorporated in the agreement to safe guard the interest and minimize the loss of the party who buys the precious metal for the other party.

Thank you

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