A gas sales agreement is a legal document that sets out the terms and conditions of the sale or purchase of natural gas. This agreement is commonly used by gas companies and their customers to ensure that both parties are clear on their responsibilities and obligations. If you are in the process of entering into a gas sales agreement, it is important to have a clear understanding of what should be included in the agreement and how it can benefit you.
To help you get started, we have put together a gas sales agreement sample that outlines the key elements of a typical agreement.
Gas Sales Agreement Sample
This agreement (“Agreement”) is made between [Seller], a [state] corporation with its principal place of business at [address] (“Seller”), and [Buyer], a [state] corporation with its principal place of business at [address] (“Buyer”).
1. Purpose and Scope
This Agreement sets out the terms and conditions for the sale of natural gas by the Seller to the Buyer. The gas will be delivered to the Buyer at [delivery point] for use in [buyer’s use]. The Agreement shall be effective for a period of [term].
2. Quantity and Price
The Buyer agrees to purchase from the Seller, and the Seller agrees to sell to the Buyer, a certain quantity of natural gas (the “Gas”) as set forth in Schedule A attached hereto. The price for the Gas shall be as set forth in Schedule A, and shall be subject to adjustment as provided in Section 3.
The price for the Gas may be adjusted by the Seller from time to time upon a change in market conditions or other factors affecting the cost of producing or delivering the Gas. The Seller shall provide written notice of any such adjustment to the Buyer at least [number] days prior to the effective date of the adjustment.
The Seller shall deliver the Gas to the Buyer at the delivery point specified in Schedule A. The Seller shall be responsible for the transportation of the Gas to the delivery point, and the Buyer shall be responsible for all arrangements necessary to receive the Gas at the delivery point.
The Buyer shall pay the Seller for the Gas within [number] days of the date of each invoice, which shall be based on actual deliveries of the Gas during the preceding month. Payment shall be made in [currency] and shall be made to the account specified by the Seller.
If either party fails to perform any of its obligations under this Agreement, the other party may terminate this Agreement upon written notice to the defaulting party. In the event of a default by the Buyer, the Seller shall be entitled to recover all amounts due and owing, as well as any damages resulting from the breach.
7. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [state], without giving effect to any choice of law or conflict of law provisions.
8. Entire Agreement
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.
In conclusion, a gas sales agreement is an important document that helps to ensure a smooth and efficient transaction between gas companies and their customers. If you are entering into a gas sales agreement, it is essential to have a clear understanding of what should be included in the agreement to protect yourself and your interests. By using this gas sales agreement sample as a guide, you can be confident that you have covered all of the key elements of this type of agreement.