Common use of Purchasing Terms Clause in Contracts

Purchasing Terms. All purchases made by Agent for Principal’s benefit pursuant to this Agreement and the written purchase order of Principal shall be F.O.B. port of loading in the country of origin (in the case of China, it can also be F.O.B. HK) unless otherwise agreed to in writing by the Parties hereto. Commercial invoices will be prepared by the Supplier on the basis of the actual F.O.B. price (the “F.O.B. Country of Origin Price”) paid by Principal, exclusive of Agent’s commission. Unless otherwise specifically agreed to by the Parties, payment for all purchases of the merchandise by Principal, or by customers of the Principal, shall be by transferable irrevocable confirmed bankers’ letter of credit at a sight to be established in favor of Agent with the condition that the related Merchandise shall be consigned to the bank by which said letter of credit is drawn. All such letters of credit shall be in a form approved by Agent and shall be net of Agent’s commission.