Sample Memorandum of Understanding format for supply

Template / example of Memorandum of Understanding for Contractual / Project Supply in word / doc

Memorandum of Understanding drawn for supply of HR Coils

between M/s Rocket Corporation Ltd. (RCL) & ABC Corporation (ABCC)

ABCC has received an order for supply of 1,25,254 Nos. of Gas Cylinders from the HPCL, Mumbai. In Gas Cylinders the Outer Body shall be made out of Galvanized Coated HR Coils 24mm thick conforming to IS 25547/05. The order will be executed through SSI units having EPM rate contracts. For supply of Galvanized Coated HR Coils ABCC has negotiated with M/s Rocket Corporation Ltd. (RCL). The following terms and conditions have been discussed and agreed upon mutually :

1.    RCL will supply the entire requirement of HR Coils for around 531,25,254 Nos. of Gas Cylinders within the stipulated time period i.e. within 31^st January, 2013. (The above quality is indicative only).

2.    RCL will supply 1,25,254 Nos. of Gas Cylinders referring to IS 25547/05 cut to sizes including delivery, loading and unloading at individual SSI units site, by arranging its own transportation on free of cost.

3.    They will bundle the HR Coils cut to prescribed sizes (i.e. 3 Nos. for one Gas Cylinder) and they have to provide stamping of relevant ISI in each lot as indicated below :

Cylinder Bottom – 3” X 2”

Cylinder Top – 2” X 2”     

Cylinder Body  – 4” X 4”

4.    RCL shall appoint ABCC as their marketing agent by extending 5% commission from their quoted rate of Rs. 253.50 per sqr. Ft.

5.    ABCC will give them indent in advance and provide the list of units and the numbers of set to be supplied to each units on phased manner.

6.    After delivery of the HR Coils and getting the receipted challan from the unit, the payment retained by ABCC from the units will be released to RCL.

RCL will cut the HR Coils into sizes only when :

          i.    Demand Draft drawn in favour of RCL by the unit will be placed with ABCC.

         ii.    If payment will be made by cheque then only after realization of cheque.

        iii.    Demand Draft can also be placed by the unit on RCL directly under intimation to ABCC.

7.    The mode of billing on the units will be done in consultation with ABCC, RCL will pass on 5% discount over the quoted rate of Rs. 253.50 to the SSI Units.

8.  The commission will be released by RCL to ABCC in shape of credit note or any other mode acceptable to ABCC or to be adjusted at the time of releasing payment by ABCC to RCL.