Sales contract for buying coconut charcoal


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The sales contract is written an agreement between you as buyer and coconut charcoal manufacturer in Indonesia. Should you sign a contract or not? I am a coconut charcoal factory owner – if I know my buyer well or have shipped him several containers of charcoal – I do not use any contract. 

But if a new buyer comes to me, I recommend signing the coconut charcoal sales contract. You need a sales contract to protect your purchase of charcoal in a legal way. If something goes wrong – you can contact the Indonesian police or arbitrage to solve the issue. Without a contract – you are risking a lot. 

What should be written in the contract? Sales contract for coconut charcoal is different from other sales contracts.

  1. First of all, you have to write down the specification for the coconut charcoal. With saying what is max or min value for each position.
  2. What is the volume of purchase of coconut charcoal? Do you buy 20 tons of charcoal or you buy 2000 boxes. How many kgs in each box. How many cubes of coconut charcoal in each kg. What is the box design? What is the weight of the master box?
  3. What is the payment terms? How much is the downpayment for buying coconut charcoal? How do you pay the rest? It is an important part as many buyers misunderstand the procedure of payment. 
    For example, coconut charcoal manufacturer proposed 50% down payment and rest against the documents. What does it mean? With the first part (downpayment) is clear. You transfer 50% of invoice to the charcoal factory. 
    But what about finalizing payment, when should you transfer the other 50%? If shipping of charcoal takes 30 days on what day you should transfer the payment? If the seller of charcoal sends you B/L after 10 days – he expects that you pay immediately. But you may think to pay goods after arrival to your port on 29 days. This is a small issue makes big misunderstanding in the business of coconut charcoal. You should write clear on what day you pay money to the factory.
  4. Clear address of the coconut charcoal factory. Are you buying from a factory or a private person? What is the real address of the factory? Who is exporter – your factory or their customs broker? What is the legal name of coconut charcoal supplier? In Indonesia, it is easy to check if the company really exists or it is just a fake factory. Go to https://ahu.go.id/profil-pt and write down the factory legal name. If the company is a real and legal entity – it will be on the list. If you cannot find your company legal name – it is a fake coconut charcoal factory – be very careful.
  5. The time frame of coconut charcoal production and shipping. You should write down the maximum time frame (lead time) for coconut charcoal production. Sometimes factories do not have stock of coconut shells. Or they are working overcapacity. Ask the charcoal factory how long it will take to produce if you buy charcoal in a specific date range. Do not forget to write what is the penalty if a coconut charcoal factory is late to produce charcoal.
  6. Do not forget to sign the contract. Pay your attention to who is signing the contract – is it director, sales manager or just a private person. Try to find him on Facebook or Instagram to check if he is related to this company or coconut charcoal business.

You can find a sales contract for coconut charcoal for hookah or shisha here. Just copy paste it and use for your purchase.


Looking for Coconut Charcoal for Shisha?
Whatsapp/Telegram/Viber
+62 877 868 03 191

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