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Form #725

Sale 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.

Contributed by
Regal International Capital
 
Name of Firm Regal International Capital
Total Forms Contributed 48
 

See All Regal International Capital's Forms
 

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Terms Of Use

Submissions to this site, including any legal or business forms, posts, responses to questions or other communications by contributors are not intended as and should not be construed as legal advice. You are strongly encouraged to consult competent legal council before engaging in any action based upon content contained on this site.

These downloadable forms are only for personal use. Retransmission, redistribution, or any other commercial use is prohibited. This includes reposting forms from this site to another site offering free legal or other document forms for download.

Please note that the donator may have included different usage terms regarding this form, and you agree to abide by these terms. It is highly recommended that you have a licensed attorney review any legal documents for which you are searching in order to make sure that your needs are being properly and completely satisfied.

Your use of this site constitutes your acceptance of our terms of use and your agreement to hold this site, its officers, employees and any contributors to this site harmless for any damage you might incur from your use of any submissions contained on this site. If you do not agree to the above terms, please do not proceed.

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 about the competence, character or qualifications of its participating members.
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