Common use of Circles Clause in Contracts

Circles. (a) Where Seller repurchases from Buyer or from any subsequent Buyer the same goods or part thereof, a circle shall be considered to exist for purposes of this clause. (b) If this contract forms part of a circle, each party may agree with the other parties in the circle to forego actual Delivery and to participate in a settlement agreement for the settlement of contract price di¦erences. Monies due and owed to parties in the circle shall be payable on the middle day of the contract Delivery Period. (c) If a circle can be shown to exist but no settlement agreement has been reached by the 10th calendar day following the last day of the Delivery Period, actual Delivery shall not be made and payment shall be made by each Buyer to its Seller of the excess of Seller’s invoice amount over the lowest invoice amount in the circle. Such payments shall be made promptly after the 10th calendar day following the last day of the Delivery Period. (d) Should any party in a circle fail to make payment on the due date as required under paragraph (b) or (c) above for reasons cited in Clause 23 or for any other reason, payment shall be made between each Buyer and its Seller of the di¦erence between the Seller’s invoice amount at contract price and the market value of the commodity on date of insolvency or default, as the case may be. Such payment shall be made latest on the 2nd business day after the due date under paragraph (b) or (c) above. Payments already made under paragraph (b) or (c) above shall be refunded. (e) All circle settlements shall be based on the mean contract quantity. If a circle under paragraph (b), (c) or (d) above exists, Clause 21 shall not apply and Clauses 18 and 20 shall not be invoked. Payments due on a non-business day shall be made not later than the following business day. All payments made after the Delivery Period shall include carrying charges from the day following the last day of the Delivery Period, to the date of payment, at the rates stipulated in this contract. These carrying charges shall be settled individually between each Buyer and its Seller. (f) The parties agree that any dispute arising out of the voluntary settlement agreement entered into in accordance with paragraph (b) above shall be subject to arbitration as to any party thereto. Such arbitration shall be conducted in accordance with the provisions of Clause 30.

Circles. (a) Where Seller repurchases from Buyer or from any subsequent Buyer For the same goods or part thereofpurposes of this clause, a circle shall be considered to exist consist of a series of contracts in which each seller is also a buyer of a commodity of the same description and quality, for purposes of this clausedelivery at the same ports and with compatible delivery periods. (b) If this contract forms part of a circle, each party may agree with the other parties in the circle to forego actual Delivery delivery and to participate in a settlement clearing agreement for the settlement of contract price di¦erencesdifferences. Monies due and owed to parties in the circle shall be payable on the middle day of the contract Delivery Perioddelivery period. (c) If a circle can be shown to exist but no settlement clearing agreement has been reached by the 10th calendar day following the last day of the Delivery Perioddelivery period, actual Delivery delivery shall not be made and payment shall be made by each Buyer buyer to its Seller seller of the excess of Seller’s seller's invoice amount over the lowest invoice amount in the circle. Such payments shall be made promptly after the 10th calendar day following the last day of the Delivery Perioddelivery period. (d) Should any party in a circle fail to make payment on the due date as required under paragraph (b) or (c) above for reasons cited in Clause 23 or for any other reason, payment shall be made between each Buyer buyer and its Seller seller of the di¦erence difference between the Seller’s seller's invoice amount at contract price and the market value of the commodity on date of insolvency or default, as the case may be. Such payment shall be made latest on the 2nd business day after the due date under paragraph (b) or (c) above. Payments already made under paragraph (b) or (c) above shall be refunded. (e) All circle settlements shall be based on the mean contract quantity. If a circle under paragraph (b), (c) or (d) above exists, Clause 21 shall not apply and Clauses 18 and 20 shall not be invoked. Payments due on a non-business day shall be made not later than the following business day. All payments made after the Delivery Period delivery period shall include carrying charges from the day following the last day of the Delivery Perioddelivery period, to the date of payment, at the rates stipulated in this contract. These carrying charges shall be settled individually between each Buyer buyer and its Sellerseller. (f) The parties agree that any dispute arising out of the voluntary settlement clearing agreement entered into in accordance with paragraph (b) above shall be subject to arbitration as to any party thereto. Such arbitration shall be conducted in accordance with the provisions of Clause 30.