Forward Sale Contract for Singapore

Forward Sale Contract Template for Singapore

A Forward Sale Contract under Singapore law is a legally binding agreement where one party agrees to sell and another party agrees to buy specific goods or assets at a predetermined price, with delivery and payment occurring at a future date. The contract is governed by Singapore's Contract Law and Sale of Goods Act, incorporating specific provisions for forward trading under the Securities and Futures Act where applicable. It includes detailed specifications of the goods, pricing mechanisms, delivery terms, and risk transfer provisions.

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What is a Forward Sale Contract?

Forward Sale Contracts are essential instruments in commercial transactions where parties wish to lock in future prices and secure supply chains. These contracts, governed by Singapore law, are particularly valuable in commodity trading, manufacturing, and agricultural sectors where price volatility management is crucial. The Forward Sale Contract typically includes specific terms regarding quality specifications, delivery schedules, payment terms, and risk allocation. It provides certainty in commercial relationships while complying with Singapore's robust legal framework, including the Contract Law, Sale of Goods Act, and where applicable, the Securities and Futures Act.

What sections should be included in a Forward Sale Contract?

1. Parties: Identification and details of all contracting parties

2. Background/Recitals: Context and purpose of the forward sale agreement

3. Definitions: Key terms used throughout the agreement

4. Subject Matter: Detailed description of goods/assets being sold forward

5. Price and Payment Terms: Forward price, payment schedule, and payment mechanics

6. Delivery Terms: Timing, location, and method of delivery

7. Risk Transfer: When and how risk passes between parties

8. Representations and Warranties: Standard assurances from both parties

9. Events of Default: Circumstances constituting breach

10. Governing Law: Singapore law provisions and jurisdiction

What sections are optional to include in a Forward Sale Contract?

1. Force Majeure: Used when parties want specific provisions for unforeseen events - recommended for international trades or high-value contracts

2. Insurance: Insurance requirements for goods - recommended for high-value or perishable goods

3. Quality Specifications: Detailed quality requirements - recommended for complex products or commodities

4. Regulatory Compliance: Specific regulatory requirements - recommended for regulated industries or cross-border trades

What schedules should be included in a Forward Sale Contract?

1. Product Specifications Schedule: Detailed technical specifications of goods

2. Pricing Schedule: Detailed pricing mechanisms and calculations

3. Delivery Schedule: Detailed delivery timeline and locations

4. Quality Standards Schedule: Applicable quality standards and testing procedures

5. Required Certifications Schedule: List of required certificates or permits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Clauses
Industries

Civil Law Act (Cap. 43): Primary legislation governing contract law in Singapore, providing the fundamental framework for contract formation and enforcement

Common Law Principles: Singapore follows English common law principles for contract interpretation and enforcement where not superseded by statute

Sale of Goods Act (Cap. 393): Regulates the sale of goods and provides statutory provisions for commercial transactions involving goods

Electronic Transactions Act: Governs electronic transactions and digital signatures, relevant if the forward contract is executed electronically

Securities and Futures Act (Cap. 289): Regulates securities, futures, and derivatives trading - crucial for forward contracts involving securities or commodities

MAS Regulations: Monetary Authority of Singapore regulations governing derivatives trading and financial instruments

UN Convention on International Sale of Goods: International treaty governing cross-border sale of goods, if applicable to the forward contract

INCOTERMS Rules: International commercial terms defining responsibilities of buyers and sellers in international transactions

Consumer Protection (Fair Trading) Act: Protects consumer interests in commercial transactions, applicable if one party is a consumer

Unfair Contract Terms Act: Regulates unfair terms in contracts and limits the extent to which liability can be excluded

Arbitration Act: Governs arbitration proceedings as a dispute resolution mechanism in Singapore

Mediation Act: Provides framework for mediation as an alternative dispute resolution method

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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